Production Environments

Production Environments

Sourced: BSCM CPIM certification course by IMRMI (India)

Production environment can be clasiffied into:

·         Design/Engineer to order

·         Make to order

·         Assemble/Package to order

·         Make to stock

DESIGN/ENGINEER  TO ORDER (ETO)

ETO environment caters to spesific customer’s requirement. The process starts with the preparartion of unique customezied engineering designs of the product with the close involvement of the customer. The delivery lead time includes: designing, purchasing, manufacturing, assembling and shipping.

MAKE TO ORDER (MTO)

In this, the final product is made after the receipt of the customer order. Standard components are purchased/manufactured and are usually stockes as rawa material inventory. The main activities contributing to the delivery lead time in this environment include the manufacturing time, assembling time and shipping.

ASSEMBLE/PACKAGE TO ORDER (ATO)

In this enviroment, the standard components and sub-assemblies are manufactured and stocked in the form of component/sub-assembly inventories. One the recepit of the customer orders, these standard components/sub-assemblies are assembled according to the configurabale opstions spesified by the customer. There is no design and product manufacturing activity involved and hence the delivery lead time include the time to assemble and ship.

MAKE TO STOCK (MTS)

In this inveronment, the products are completely manufactured and the finished goods are stock as end item/finished good inventory. On the receipt of the customer orders, the goods are packed and shipped to the customers and hence the delivery time only the shipping time.