A Summary of ‘Are You a Candidate for Produce-to-Demand”
The idea of make-to-order manufacturing is to produce goods according to a master production schedule and minimize the costs. It is based on current sales history and future plans about sales. Therefore, the production plan relies on the MPS, but in case of any shock all losses and excess stocks will be borne by the producer. The idea of produce-to-demand manufacturing is focused not on attaining the master production schedule, but on producing the right amount of product. The main feature of produce-to-demand is to produce the amount of goods when needed. However, the MPS and a forecast are still needed for future sales increase and accounting.
The business can be compatible with produce-to-demand system if the production in reliable. The plant must assure that it will be able to produce the necessary amount of goods when requested. The business owner should also pay attention to product characteristics, as some of the goods do not comply with produce-to-demand system. The organization of supply chain must be at the highest level as it is crucially important that all chains of the production process worked timely and promptly. Produce-to-demand requires new type of communication technologies as it is based on information visibility.
Therefore, shifting from one model to produce-to-demand requires changing planning and scheduling process, re-establishing inventory process and better business organization. The pilot operations may not be as successful as it is expected. The approach is results oriented, so it may take time when it will bring visible success. However, it offers high level customer service and better protection of producer’s interests. If the business complies with the criteria mentioned above, it is almost a guarantee that it will benefit from the suggested model (Schutt & Moore, 2011).
Works Cited
Schutt, Jeff & Moore, Thomas. (2011). Are You a Candidate for Produce-to-Demand? Supply Chain Quarterly. Retrieved from http://www.supplychainquarterly.com/topics/Manufacturing/201103produce/
