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  • Lecture 7

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    Nauman Khan
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    The document discusses four types of manufacturing environments: make-to-stock, assemble-to-order, make-to-order, and engineer-to-order. Make-to-order manufacturing involves producing products based on predictable demand, with high production volumes of each unit and short customer delivery times. Assemble-to-order involves making sub-assemblies and stocking them, then assembling products only after receiving customer orders, allowing for medium delivery times based on sub-assembly availability. Make-to-order begins production only after receiving customer orders, uses available base components and designs, and involves extensive customer interaction during both sales and engineering. Engineer-to-order is an extension of make-to-order where

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    The document discusses four types of manufacturing environments: make-to-stock, assemble-to-order, make-to-order, and engineer-to-order. Make-to-order manufacturing involves producing products based on predictable demand, with high production volumes of each unit and short customer delivery times. Assemble-to-order involves making sub-assemblies and stocking them, then assembling products only after receiving customer orders, allowing for medium delivery times based on sub-assembly availability. Make-to-order begins production only after receiving customer orders, uses available base components and designs, and involves extensive customer interaction during both sales and engineering. Engineer-to-order is an extension of make-to-order where

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    10 views2 pages

    Lecture 7

    Uploaded by

    Nauman Khan
    The document discusses four types of manufacturing environments: make-to-stock, assemble-to-order, make-to-order, and engineer-to-order. Make-to-order manufacturing involves producing products based on predictable demand, with high production volumes of each unit and short customer delivery times. Assemble-to-order involves making sub-assemblies and stocking them, then assembling products only after receiving customer orders, allowing for medium delivery times based on sub-assembly availability. Make-to-order begins production only after receiving customer orders, uses available base components and designs, and involves extensive customer interaction during both sales and engineering. Engineer-to-order is an extension of make-to-order where

    Copyright:

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    PRODUCTION AUTOMATION (Lecture 7) MANUFACTURING POLICIES Four types of Manufacturing Environments 1. Make To Stock (MTS) 2.

    Assemble To Order (ATO) 3. Make To Order (MTO) 4. Engineer To Order (ETO) 1. MAKE TO ORDER (MTO) Manufacture of Products is based on well-known and predictable demand pattern Production Volume of each unit is High Customer Delivery Time (SHORT) [Finished Goods Inverntory]

    Advantage Short Delivery Time Product Life Cycles (Predictable and Long)

    Disadvantage Inventory Costs are High Customers Interaction is Distant i.e. customers Input (only to sales Department)

    2. ASSEMBLE TO ORDER (ATO) Sub-assemblies of the product are made and stocked After the receipt of order they are assembled Delivery Time (Medium) Delivery Time (is based on the availability of the Major sub-assemblies) Assembly only takes place on the receipt of the customer order Customers Input is limited (Sales Department)

    Dr. S.A. Shah

    Page 1

    PRODUCTION AUTOMATION (Lecture 7) 3. MAKE TO ORDER (MTO) Manufacture of the product begins upon the receipt of order Many of the base components are available along with engineering designs The product is not actually completely specified Configuration of the product may change from the initial specifications during the processing period Customers Interaction is Extensive (Involves sales and Engineering) Delivery Time ranges from Medium to Large (Depends on capacities of the system)

    4. ENGINEER TO ORDER (ETO) Extension of MTO Engineering design of the product is based on the customers requirement and specifications Customers Interaction (is even more extensive then MTO)

    CONCLUSION S.NO 1 2 3 4 5 ASPECT Customer/Manufacturer Interaction Delivery Time Product Volume Product Range Basis of Production MTS Low / Distant Short High Low Forecast Available Finished Goods Inventory ATO At Sales Level Medium Medium Medium / High Forecast / Backlog Availability of components and Major Sub-Assemblies MTO Engineering and Sales Level Long Low High Backlog (Order) Capacity for Manufacturing OR Engineering

    Delivery Time (Based ON)

    Dr. S.A. Shah

    Page 2

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