Differences Between Make-to-Order and Make-to-Stock Production and How to Choose|Production Method Guide
Explaining how to determine the suitable production method and improve the workplace for small and medium-sized manufacturers who are unsure whether to adopt made-to-order production or forecast production.
This document explains the differences between make-to-order (MTO) and make-to-stock (MTS) production methods, and provides a framework for identifying the production method that best suits your company. It compares the characteristics, advantages, and points of caution of both methods, starting from challenges such as excess inventory and stockouts due to demand fluctuations, responses to a wide variety of low-volume and short lead times, and the burden on the production site caused by changes in plans. In addition to the three perspectives of product characteristics, demand stability, and lead time requirements, it also introduces hybrid models that combine MTS and MTO, as well as the customer order decoupling point (CODP). In the latter part, it includes examples of inventory, progress, and performance recording and sharing using the production management system FUSE, visualization of the production site, and measures against reliance on specific individuals. This content is useful for small and medium-sized manufacturing companies looking to review their production methods and improve production management. *For more details, please download the PDF or feel free to contact us.*
- Company:日本コンピュータ開発
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