Assemble to Order
Assemble to Order is a production environment where a good or service can be assembled after receipt of a customer’s order. The key components (bulk, semifinished, intermediate, sub-assembly, fabricated, purchased, packing, and so on) used in the assembly or finishing process are planned and usually stocked in anticipation of a customer order. Receipt of an order initiates assembly of the customized product. This strategy is useful where a large number of end products (based on the selection of options and accessories) can be assembled from common components. Sample documentation of Assemble to Order in the field of logistics is assembly of a motor vehicle from a parts kit.
The term “Assemble to Order” should not be confused with other product build strategies, including make to stock, where components are made or purchased irrespective of customer demand; make to order, which refers to manufacture of goods only after the receipt of an order from a specific customer; and configure to order, which includes any customization that might be requested by a customer.
The key features associated with Assemble-to-Order include variability in production rate, limited storage between operations (continuous flow), continuous processing through workstations, inventory held for each operation based on takt time rather than average time per operation, and work-in-process inventory transferred between stations. The key feature of Assemble to Order is variability in the rate of production based on customer order size (customer demand for finished product).
This differs from assembly where components are made or purchased irrespective of customer demand; make to order, which refers to manufacture of goods only after the receipt of an order from a specific customer; and configure to order, which includes any customization that might be requested by a customer.
The main principle behind assemble-to-order is to respond quickly with production according to customers’ needs. It requires flexibility in sourcing materials, willingness by suppliers to provide small runs if required and ability within manufacturing plants to quickly switch processes – all aimed at ensuring prompt, lean turnaround times for customer orders.
Related Links
- Assemble To Order – ATO
- Assemble to Order – ATO – Logistiikan Maailma
- Assemble To Order (ATO) Definition – Operations & Supply Chain Dictionary
- Supply Chain Operations: Assemble-to-Order Systems
- Assemble-to-order system
- Difference Between MTS, ATO, MTO ,PTO ,CTO and ETO.
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