Why is Making to Order so different?This paper looks at some of the key elements of operations management in Make to Order businesses and assesses the suitability, or otherwise, of the manufacturing planning and control techniques which have come to be accepted as standard...
This area is not well served by the textbooks and the generic approaches to scheduling and material planning, nor, in general, do the popular computer packages lend themselves to helping this type of business.
What do we mean by 'Making to Order'? The term make to order can mean many things. We may think perhaps of bespoke computer systems or fitted kitchens. For such businesses we may hear the term ‘make to stock and assemble to order’ signifying that the business carries out some primary processes ahead of receiving a customer’s order. At the other extreme, in, say, shipbuilding, we may do nothing at all until we take the order and at this point begins the work of converting the customer’s requirement into a product specification, then a design and then a list of parts to make and buy.
This latter type of company may be termed design and make to order, and it is to this area of manufacturing that this paper is addressed...