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MTO are manufactured after receiving customer order, which means customer is willing to accept
longer delivery period. The examples are commercial dish washers and refrigerators for hotels. In
order to reduce lead time, the factory often uses ready components to manufacture a product. It has
the moderate lead time.
In ATO, stock of existing items is kept on hand but they are sub-assemblies, not the finished product.
The company uses final assembly orders to put the finished product together according to
specifications of the customer order. This involves some extra lead time but not as much as MTO.
Private aircrafts, commercial trucks and computers are the examples of ATO. ATO offers many
variations in standard product because of the choices the customers have in deciding final product
from options provided.
ETO item is built on the customer product specifications such as large commercial aircrafts. Such
product cannot be produces according to existing specifications of the company because some
engineering skill is required to incorporate customer specifications in to the design of the final
product. Companies using this manufacturing strategy, always quote longer lead time. The engineering
and manufacturing costs involved are also high and are tracked for each order separately.
2) A typical characteristic of discrete manufacturing is the frequent switching from one manufactured
product to another. Costs are calculated on the basis of orders and individual lots.
3) Discrete manufacturing, Units can be produced in low volume with very high complexity or high
volumes of low complexity. Low volume/high complexity production results in the need for an
extremely flexible manufacturing system that can improve quality and time-to-market speed while
cutting costs. High volume/low complexity production puts high premiums on inventory controls, lead
times and reducing or limiting materials costs and waste
4) The order of work centers is determined in routings, which can often be very complex. There can be
waiting times between the individual work centers
Examples are Transportation equipment, Automobiles, toys, Computer and accessories and electronic
products, consumer electronics, furniture, Lego Blocks, Appliances and other house hold items,
Industrial and electrical equipment, Medical equipment and supplies, etc.