Category: Engineer-to-Order (ETO)
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Distinctions Between Discrete and Process Manufacturing
Process manufacturing is different, distinct, and distinguishable from discrete manufacturing. Process manufacturing uses formulations versus discrete manufacturers use Bills of Materials (BOMs) and assembles along a routing. Process manufacturers blend a batch – often a literal recipe found in food and beverage manufacturing. Discrete manufacturers are typically ETO (engineer-to-order), which includes make-to-stock (MTS), make-to-order…
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Creating Trust Throughout the Supply Chain Using Demand-Driven Methods
How reducing forecasting errors and disruption risks create better supplier relationships. Building trust in the supply chain is essential to driving flow; and when there are forecast errors, there is an inherent mistrust throughout the supply chain. Lack of collaboration is often the cornerstone of conflict, blame, and mistrust between a manufacturer and suppliers. Missed…
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Demand Driven Manufacturing in the Engineer-to-Order Space
Aligning Lean Manufacturing and Continuous Improvement Practices Demand-driven manufacturing (DDM) is an approach to manufacturing where production is based on actual demand rather than forecasts. DDM enables a synchronized, closed loop between customer orders, production scheduling and manufacturing execution – all while simultaneously coordinating the flow of materials and resources across the supply chain. The…