Describe manufacturing strategies
The lifecycle of production begins with creating the production order, batch order, or Kanban. (You use Kanbans to signal repetitive lean manufacturing processes that are based on production flows and specific rules.) The lifecycle of a production order ends with a finished, manufactured item that is ready for either a customer or another phase of production.
Supply Chain Management delivers unified (mixed-mode) manufacturing to support all your manufacturing strategies, including:
Make-to-stock: This principle is the classic manufacturing principle where you produce products for stock based on forecast or minimum stock refill. You calculate the latter based on forecast or historic consumption.
Make-to-order: Standard products are made-to-order or finished-to-order. Although pre-production might be done by using the make-to-stock principle, you trigger expensive steps of the value chain, or steps that create variants, by a sales order or transfer order.
Configure-to-order: As for the make-to-order principle, the final operations of the value chain are made-to-order. The actual product variant you produce is not predefined; you create it at the time of order entry based on the configuration model of the sales product. The configure-to-order principle requires a certain level of process unification for a given product line.
Engineer-to-order: Engineer-to-order processes are a project and usually start with the engineering phase. During the engineering phase, you design the products required to fulfill the order. You can create production orders, batch orders, or Kanbans to produce the products.
You can modify, copy, and use each component of information in a production order to meet the requirements of the manufacturing facility. Whether the company produces items that are made to order, made to stock, or engineered to order, Supply Chain Management helps with your manufacturing strategies.