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Configure To Order Vs Make To Order. The bom and specifications remain the same for goods produced in mto. Configure to order can be seen as a midway point between make to order and engineer to order.
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Orders & confirm, gr takes place. Make to order is a viable strategy when the products you’re manufacturing are complex, with many customizable features for your customers. Although we see a similar configure to order activity in the r&d departments of companies that follow the build to order process.
Designing A Product That Is Configurable, Requires A Complete Different Approach As Compared To Engineering To Order Or Build To Order.
I have been through sap help, but i am still looking for a brief list of differences. Customers will come to you when they wish to have a more personalized shopping existence and will tend to be willing to pay extra or wait a bit longer than usual due to the customization request. So there is an upper limit as well as a lower limit in complexity where configure to order has its right to exist.
Make To Order Is A Viable Strategy When The Products You’re Manufacturing Are Complex, With Many Customizable Features For Your Customers.
You have to create characteristics,class,super bom,obj. The difference between models and items is essentially the ability to configure an item while creating an order. The prod process will start only after receiving the sales order from the customer.
Configure To Order Can Be Seen As A Midway Point Between Make To Order And Engineer To Order.
Make to stock is a viable strategy when there isn’t much variation between the products you manufacture and little customization on. Then after mrp run you will get planned orders & this is processed further into prod. That is under configured order product is configured using a combination of already in stock.
Stock Keeping Is Not Usually Carried Out For Products That Are.
Since items are made only after receiving a customer order, it’s called ‘make to order’. Although we see a similar configure to order activity in the r&d departments of companies that follow the build to order process. Mto is used on goods where the order is a quantity of one or a few and in situations where all or part of the order may be custom made or carry a high unit cost.
The Ability To Offer Custom Engineer To Order Products Makes A Company Much More Competitive In The Global Manufacturing Environment.
The customer provides a set of specifications which the manufacturer uses to make products or source its components, in order to fulfill the customer’s requirements. Oracle applications supports the configure to order environment with a range of features in order entry, demand forecasting, master scheduling, production, shipping, and financial accounting. The bom and specifications remain the same for goods produced in mto.
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