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Make To Order

Make to order (MTO) is a manufacturing strategy that produces products only after a customer places an order, allowing for customization to specific requirements. The advantages of MTO include tailored products and reduced inventory waste, while disadvantages involve longer wait times and potentially higher costs compared to make-to-stock methods. This strategy contrasts with make-to-stock, where products are manufactured in advance for immediate sale.

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dennisraypan
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3 views7 pages

Make To Order

Make to order (MTO) is a manufacturing strategy that produces products only after a customer places an order, allowing for customization to specific requirements. The advantages of MTO include tailored products and reduced inventory waste, while disadvantages involve longer wait times and potentially higher costs compared to make-to-stock methods. This strategy contrasts with make-to-stock, where products are manufactured in advance for immediate sale.

Uploaded by

dennisraypan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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MATERIALS

TECHNOLOGY
MANAGEMENT
PRAPERD BY:DENNIS P.RAYPAN
WHAT IS MAKE TO ORDER?

IS a manufacturing strategy called make to


order(MTO),Whish involes producing products after a
custumer places an order.
ADVANTAGE AND DISADVANTAGE
ADVANTAGE
The main advantage of the MTO
system is the ability to fulfill an order
with the exact product specification
required by the customer. If the
company can deliver the product just
as the customer wants, they are more
likely to remain loyal to the brand.
DISADVANTAGE
One of the main drawbacks of make-to-order management is
the timeliness of the customization process. If products are
already on the shelf (as with MTS), then a customer doesn't
have to wait until the product is made, assembled, and
delivered to spec.
KEY TAKEAWAYS
MAKE-TO-ORDER OR MADE-TO-ORDER IS A PRODUCTION
STRATEGY THAT TYPICALLY ALLOWS CONSUMERS TO
PURCHASE PRODUCTS CUSTOMIZED TO THEIR
SPECIFICATIONS.
THE MANUFACTURING PROCESS OF AN MTO ITEM BEGINS
ONLY AFTER A CONFIRMED CUSTOMER ORDER IS RECEIVED.
ADVANTAGES OF MTO INCLUDE CUSTOMIZATION FOR
CUSTOMERS, REDUCTION IN STOCK OBSOLESCENCE AND
FINISHED GOODS INVENTORY, AND OVERALL WASTE.
DISADVANTAGES INCLUDE INCREASED COSTS AND
INCREASED WAIT TIMES FOR A FINISHED PRODUCT.
MTO CAN BE CONTRASTED WITH MAKE-TO-STOCK
MANUFACTURING, WHEREBY INVENTORIES ARE PRODUCED
IN ADVANCE OF CONSUMERS BUYING THEM OFF THE
SHELF.
THANK YOU

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