// ROBOTICS AND SMART FACTORIES TERM
Make to Order
A production strategy where manufacturing of a product begins only after a customer order is received, allowing for customization.
TECHNICAL DEFINITION
Make to Order (MTO) is a production strategy where goods are manufactured only upon receipt of a confirmed customer order, enabling product customization, minimizing finished goods inventory, and reducing obsolescence risk, but potentially increasing lead times.
BACKGROUND
Manufacturing is the creation or production of goods with the help of equipment, labor, machines, tools, and chemical or biological processing or formulation. It is the essence of the secondary sector of the economy. The term may refer to a range of human activity, from handicraft to high-tech, but it is most commonly applied to industrial design, in which raw materials from the primary sector are transformed into finished goods on a large scale. Such goods may be sold to other manufacturers for the production of other more complex products, or distributed via the tertiary sector to end users and consumers.
READ MORE ON WIKIPEDIASYNONYMS & ALIASES
- Build-to-order
- custom manufacturing
- order-driven production
- pull system
USAGE NOTE
MTO is common for highly configurable products or those with high unit costs, like specialized machinery.
DEVELOPERS
Organizations developing technology related to Make to Order.
SAP provides comprehensive ERP and supply chain management (SCM) solutions, such as SAP S/4HANA, which enable manufacturers to efficiently manage make-to-order processes, from customer order to production planning and execution, supporting highly configurable products and personalized manufacturing.
Siemens offers a robust portfolio of software, including PLM (Teamcenter) and MOM (Opcenter) solutions, that help companies streamline design, engineering, and production workflows for make-to-order strategies, optimizing flexibility and responsiveness in manufacturing.
Through brands like SOLIDWORKS, DELMIA, and ENOVIA, Dassault Systèmes provides solutions for virtual design, simulation, and manufacturing planning, crucial for complex make-to-order products, allowing for efficient customization and production optimization.
Oracle's Cloud ERP and Supply Chain Management (SCM) solutions offer advanced capabilities for configure-to-order and make-to-order manufacturing, helping businesses manage demand, production, and inventory in highly personalized production environments.
Plex provides a cloud-native smart manufacturing platform that helps discrete and process manufacturers manage and execute make-to-order operations, integrating ERP, MES, and supply chain functions to increase agility and customer responsiveness.
Infor offers industry-specific cloud software, including ERP and SCM solutions tailored for discrete manufacturing, supporting make-to-order and configure-to-order models by optimizing production planning, scheduling, and execution for unique customer requirements.
Epicor provides industry-specific ERP software designed for manufacturers, with strong capabilities for managing complex make-to-order processes, including product configurators, advanced production scheduling, and real-time shop floor control.
PTC offers PLM (Windchill), CAD (Creo), and IoT solutions that enable efficient product development, digital thread creation, and manufacturing processes, critical for managing the complexity and responsiveness required in make-to-order production.