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Author: Admin | 2025-04-27
Of this approach is that manufacturing cannot start until the order is received, causing longer lead times. However, in industries like aerospace and automated machinery, lead times do not need to be as fast as in the consumer goods industry. MTO manufacturers can also create small buffer inventories to help mitigate the inherently longer lead times of this manufacturing process. 3. Assemble to Order (ATO)Assemble to Order (ATO) is a production method in which subassemblies and components of a finished product are manufactured but not yet assembled before the customer places the order. Once the order is made, workers assemble the subcomponents into the final customized product and then promptly deliver the product to the client. At its core, ATO is the fusion of MTO and MTS methods.The flexibility of MTO (Made to Order): Customers get to select the specific components of the finished product. The faster lead times of MTS (Made to Stock): The initial bulk of manufacturing is completed before the client places an order because subassemblies are pre-manufactured.While this manufacturing process seems like the best of both worlds, it does require a specific product type that allows for subcomponents to be readily on hand. Computer manufacturers like Dell and HP are prime examples of ATO processes where motherboards, computer chips, and processors can be quickly assembled when work orders come through. 4. Engineer-to-Order (ETO)Engineer-to-order (ETO) is a manufacturing process where products are entirely conceived and engineered from scratch based on the customer's requirements. Within this manufacturing process, the volume is low and the product variation is high. Complex industrial equipment, defense systems, and construction/infrastructure projects typically follow this manufacturing approach.While similar to the MTO method, ETO provides the greatest amount of flexibility and customization. Rather than merely purchasing a final product with a few customizations, companies commission the creation of the product and are involved from the design phase to the very end of product finalization. In this case, a job shop manufacturing process or a company with an R&D department is best suited for this type of work.The 3 Manufacturing Processes by Strategic PurposeWhile the focus
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