Aligning Supply Chain Processes With Manufacturing Strategies

2 Aligning Supply Chain Processes With Manufacturing Strategies 

It was shown previously in this chapter that both the MTS and the ATO manufacturing strategy focus on cost reductions, the former more than the latter. Since this target normally accompanies large-scale production, sourcing actions are also 

Deliver Deliver stocked product (Dl) Deliver make-to-order product (D2) Deliver engineer-to-order product (D3) 

Product is... Maintained in a finished goods state Manufactured, assembled or configured from standard parts Designed, manufactured and assembled from standard and custom parts 

Production of product... Prior customer order After customer order After customer order 

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Since the new supply chain strategy with its MTS manufacturing strategy aims at the high-volume mass market, its make process is aligned accordingly the production takes place on a continuous assembly line. The old supply chain is characterized by a batch manufacturing process, complemented by job shop production, if make-to-order (MTO) is required. 

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