Manufacturing is the process of producing an item for sale. In manufacturing, there are many different types and subtypes of manufacturing. So how do you know what type of manufacturing environment your company is using? In this article, we will review the three main types of manufacturing and the key terminology that goes with each.

Make-to-stock (MTS)

Make-to-stock manufacturing is a type of manufacturing production that is said to be bulk based on customer demand. This production is set up through sophisticated forecasting tools and then delivered directly to the consumer’s point of purchase.

One of the main advantages of make-to-stock manufacturing is to manufacture enough stock to meet customer orders, based on accurate demand forecasts.

This allows a considerable gain in efficiency at each stage of production, right up to delivery to the customer.

There is little waste and a lot of opportunity in this type of manufacturing.

Make to Order (MTO)

MTO is a manufacturing process that allows companies to start manufacturing after receiving an order.

It is a custom manufacturing process to meet specific customer needs.

Manufacturers know the exact size of the order and the quantity of material needed. This allows for little waste of inventory or labor in the process of creating the product to be sold to the customer.

However, the limitations of make-to-order manufacturing primarily affect irregular order patterns and the ability to produce a product in a timely manner and deliver it to the customer.

Make to Assemble (MTA)

Make to assemble manufacturing is a mix of the last two manufacturing processes. In effect, it involves initially stocking all the basic requirements but the final creation only comes after the orders have arrived.

This type of manufacturing is a method to save time, space and costs.

Indeed, the basic elements of the products are already in stock, the delivery times are shorter and there is no risk of over- or under-stocking.

These different types of manufacturing all play a prominent role in the manufacturing industry.

Costs, customer experience, available inventory and profits all depend on a well-chosen, clear and thoughtful type of manufacturing.

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