the ability of the operation to efficiently product highly customized and unique products.
Flexibility
Produce finished goods; customer buys from inventory
Advantage: smooth production
Disadvantage: inventory
MTS
Make to Stock
Start production when customer orders
Advantage: no finished goods inventory
Disadvantage: intermittent production
Key performance measures: Lead time, orders completed on time (or late), and quality measures.
MTO
Make to Order
Make parts and subassemblies; finish when customer places order
Advantages: less inventory, faster service
Disadvantage: some WIP inventory
Key performance measures: speed of service, inventory levels, and quality of product and service
ATO
Assemble to Order
Wait until someone places an order, then make the product
MTO - Make to Order
Make different parts, then put the parts together based on what customer ordered
ATO - Assemble to Order
Provides a basis for matching product choices made by marketing with process choices made by operations.
Product-Process Matrix
What are the 5 types of processes?
1 Continuous
2 Assembly Line
3 Batch
4 Job Shop
5 Project
Begin production only after receiving a customer order
MTO - Make to Order
Build modules prior to receiving order; assemble product after receiving customer order.
ATO - Assemble to Order
Manufacture entire product prior to receiving customer order.
MTS - Make to Stock
can provide a variety of options by using an assemble-to-order process. Example: Dell.
Modular Production
is the form of mass customization Motorola uses ofr its pager.
Fast Changeover
is used to defer a portion of the production until the point of delivery. example: Hewlett-Packard printers receive their final configuration for various voltages and powers supplies at U.S. or overseas warehouses before delivery.