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An Overview of Make to Order vs. Make to Stock and Repair Tags

• Publicado por John Scott 20 de novembro de 2023 - Arquivado em Negócios - #make to order vs. make to stock  - 8 visualizações

  Make-To-Order (MTO), is a production strategy in which the manufacturing of products begins when customers order them. It is known as a pull-type supply chain strategy. On the other hand, make-to-stock is all about producing goods depending on anticipations of demand from consumers. The make-to-stock approach allows for efficient production planning. It is known as a push-type supply chain strategy. 

   

  One of the simplest mistakes a worker can make is operating a machine that is broken or being repaired. Doing so can further damage the equipment and put the worker and other staff at risk of injury. Repair Tags are ideal for various applications and keeping others informed in and around your facility or workplace. The repair tags help identify the equipment scheduled for repair or under repair. One can write directly on the repair tag to inform employees about scheduled maintenance and critical safety information. 

   

  In the article below, let us learn make to order vs. make to stock. And also how Repair Tags play an essential role in Workplaces. 

   

  Significance of using Repair Tags

   

  Repair Tags can tell the employees about maintenance records, repair orders, HVAC filter replacements, and more. These Tags are vibrant and durable. Let us look at some points highlighting the importance of Repair Tags. 

   

  • Safety: The repair tags help mitigate workplace risks by indicating that one should not use a machine. This simple addition can distinguish between safe use and a hazardous mistake.

  • Inspections: Properly labelled equipment can distinguish between a reasonable and lousy assessment. The repair tags make it easy for inspectors to identify equipment that is out of service or being repaired quickly. 

  • Reduce Costs: Repair tags help you proactively identify items that need attention, allowing you to schedule maintenance or repairs during off-peak periods. It helps reduce costs to minimize disruptions in operations and ensures timely order fulfilment.

  • Improve Customer Satisfaction: Repair tags can address any maintenance or repair needs, ensuring that the orders are delivered on time and in perfect condition, leading to customer satisfaction. 

  • Customizable and Versatile: The repair tags can be customised to suit specific needs, allowing them to include important information such as product codes, descriptions, and repair instructions. Additionally, repair tags can be easily attached to various packaging supplies, including cardboard boxes, shipping boxes, and custom-printed mailers.

   

   Introduction to Make-to-Order

   

  It is a manufacturing process that produces products based on specific customer orders. It is used when a product is customised for a particular customer. The process allows businesses to tailor products to meet individual customer requirements. Customisation of products enhances customer satisfaction and helps companies differentiate themselves in the market. The Make-to-Order production technique is used in aircraft manufacturing, construction, etc.

   

   Introduction to Make-to-Stock

   

  The make-to-stock is one of the most common forms of production. It involves manufacturing goods based on anticipated consumer demand. It also utilises forecasts and real-time data to aid with making the correct amount of product and ultimately reducing waste within the facility. A forecast must reach the mark to ensure a company can handle excess or sufficient inventory, positively impacting its production. 

   

  Advantages of Make-to-Order

  • Customisation
  • Reduced Inventory Costs 
  • Demand-Driven Production
  • Waste Minimization

   

   Advantages of Make-to-Stock

   

  • Efficient use of resources
  • Economies of scale
  •  Scheduling
  • Quick response time

   

   Difference between Make to Order and Make to Stock

   

  One significant difference between make to order vs. make to stock is that Make-to-order requires a customer to order beforehand, whereas make-to-stock does not. Make-to-order is a pull production method because a business produces is based solely on the customer's demand, whereas make-to-stock is a push method. After all, the company produces a product according to sales forecasts to determine how much of the product is to be delivered. Make-to-order is based on the customer's actual needs. While make to stock is based on estimated needs.