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Configuration Mode
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- Configuration Mode
Configuration mode based on the type of product / production
Configure-to-Order (CTO)
Related to a family of products from which I can choose predefined options and variants of the base product.
Using as an example the various choices of trim packages for a model of an automobile. The marketing decides and positions the basic product and studies the possible value add alternatives which the customer can choose from.
Assembly-to-Order (ATO)
When the products are assembled at the time of the customer’s order.
The key components in the assembly or finishing process are planned and put away in anticipation of an order. Receipt of an order starts the assembly of the customized product and if the products are too complex or customer demand is unpredictable, manufacturers can choose to keep the sub-assemblies of products in a semi-finished state. The final assembly operation is then suspended until a customer order is received.
Example Personal Computers.
Engineering-to-Order (ETO)
Involves the construction of the product according to customer requirements / specifications or a bespoke customization which often requires the development of a preliminary design.
Each customer order results in a unique set of part numbers, bills of materials. Components can be custom designed to meet customer requirements.
While it is not possible to standardize these products, by combining automation with software with the best design practices and standards of the company, the manufacturer can standardize the design, assembly and technological rules to obtain the product that meets the customer’s needs and minimize the variations of inventory required to do so.