Friday, October 29, 2010

Manufacturing Environments

1. Make to stock: Final product is made to stock. Customer lead times are small in this case. Example: FMCG products.

2. Assemble to order: There is no finished goods inventory, assembly of product is done once the order is placed. Customer lead times higher than in make to stock.
Example: ordering laptops from Dell

3. Make to order: Drawing and design of standard parts are used and customization of product is done based on the customer requirement. Customer lead time is higher compared to make to order and assemble to order.

4. Engineer to order: In this case the whole product is designed and manufactured from scratch. Intensive interaction with customer and lead time is highest.

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