Production systems

Production systems are commonly defined through the Wortmann classification,
which divides systems through the attribution of the market demand model:

A.T.O. (Assembly to order – Assembly on the basis of the order)

The assembly of the manufactured article is triggered by the reception of the clients order, and occurs after the manufacturing of individual components. This model provides two distinct management systems:

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M.T.O. (Make to order – Custom production)

The system is activated after receiving an order, but the configuration methods can be
defined previously. This model requires an evaluation of the business model and of the
positioning of the market, involving various company areas including Operations and Marketing;

E.T.O. (Engineer to order – Custom-made design)

The production model foresees that manufacturing can take place after the receipt of the
order. Initial design activity takes into account all the specific, technical prerequisites being required.

This model is typically applied within the management of the single order, generally with a high unit value. In this case, the design enters the production cycle and defines the overall Lead-time in consistent terms.

Are the production systems of your company
effective or efficient?

In an increasingly complex global market it is necessary to reason through an apparent paradox.
Having an effective production system, thereby possessing the quality of the product combined with the necessary services indicated by the referent market, all the while maintaining sufficient control of costs, is a concept that is not always known, yet is necessary if we want to win the challenges of the future.

Quality as a whole

An example illustrative of everything concerning quality as a whole: experience tells us that the costs of a lack of quality in both products and services only represent a marginal aspect in the calculation of the real costs of a lack of quality in the production process. Defective products are the result of defective, thus inefficient, production processes. If we then think about customer service, linked specifically to delivery times, and therefore to the speed of traversing the production process, the questions to ask are the following:

  • Is it possible that traversing times are consistent with the question of whether the production process is inefficient?
  • How much does an effective but inefficient production process cost?
  • Can an inefficient process have fast traversing times?

The answer is rhetorical, obviously not!!!

We cannot expect to execute our daily tasks in an efficient manner if we are constantly hindered by unplanned for needs. Inevitably, we end up favouring the delivery of one product to the detriment of others, generating further unnecessary costs.