Furniture Production - Build Inventory or Manufacture to Order?
The idea of producing their furniture requirements only after having the client's order in their hand is nearly unthinkable for many producers of modern street furniture. Nevertheless, for timber furniture manufacturers, interior finishers, makers of upholstery furniture and the woodworking trade, this is all bread and butter.
It should be possible to coordinate the delivery and processing time of serial production with the process flow of manufacture to organise production. This is all the more reasonable because we live in a time of technological and organizational possibilities. In the past, the specialists yapped on about this matter ad infinitum. Yet concepts of this kind have not been fully adopted. But today, there is nothing to stop it. So why are we not making better progress with this concept?
Why Manufacture To Order?
Each business develops particular concerns according to the market position and the line of product they offer to the marketplace. For that reason, we provide only a selection of (extreme) demands, the fulfillment which depends just on the 'willingness' of the individuals concerned. Neither process time nor product shall be lost for production without having the customer's order in hand or without understanding the time and quantity required.
Internal buffers between the processing steps serve to accumulate volumes for an affordable order distribution and to control of the quality of finished goods. Stock-keeping and stock-chasing of supplied parts is just enabled parts with a procurement cycle that exceeds the delivery time of the business when alternative options could not be found.
Present capital needs to be moved to fixed capital in order to increase the value of business, which improves the versatility of the production process and resultant quality of manufactured furniture items. For the awareness of the value-added activities in connection with a particular customer’s order, all component parts play an equally crucial function.
A hold-up in shipment can be caused by a mismatch of component supply timing versus the availability required on the production line.
More information on this topic can be found at FIRA or BIFMA.
Reassessment of Traditional Production Processes
Manufacture to order is simply the perfect method of commercial furniture production. It unites all the advantages associated with minimal cost manufacture and timely availability for customers. In addition, there is the possibility of decreasing the number of processing steps in order to obtain full, benefit from the concept of 'lean production'.
Nevertheless, to do this needs a shift in thinking and leaving deep-rooted techniques and procedures of manufacturing behind along with modifications in the organizational structure. The principle is simple and effective:
-- Manufacturing when an order comes in and suspending work when orders are not available
-- Delivery at the point when the customer pays for their goods
-- Organising production when customers, orders and due dates are specified
“Pull” principle manufacturing, such as ETO, BTO, ATO and MTO is a manufacturing model for the furniture market where the amount to be produce per line item is one or at most two. For example, construction, plant building, aircraft, vessels, bridges, and so on.
From the perspective of supply chain management, it has actually been proven that those who can achieve due dates promised to customers and clients and who also can reduce lead times, will certainly have a significant competitive advantage.
Even if the production quantities rise slightly, if push-type items (inventory) that are made by MTS can be made by pull-type production such as ATO and MTO models using IT or software, then there will certainly be greater business benefits. This where the use of an effective audit management system eg Auditform can play a significant part in controlling output quality.
ATO (Assemble to Order) of computers and production of sports bike by a well recognized international business, are examples of developing a new business design by matching the diversity of items with BTO, ETO and ATO with new-style sales and marketing approaches.
It should be possible to coordinate the delivery and processing time of serial production with the process flow of manufacture to organise production. This is all the more reasonable because we live in a time of technological and organizational possibilities. In the past, the specialists yapped on about this matter ad infinitum. Yet concepts of this kind have not been fully adopted. But today, there is nothing to stop it. So why are we not making better progress with this concept?
Why Manufacture To Order?
Each business develops particular concerns according to the market position and the line of product they offer to the marketplace. For that reason, we provide only a selection of (extreme) demands, the fulfillment which depends just on the 'willingness' of the individuals concerned. Neither process time nor product shall be lost for production without having the customer's order in hand or without understanding the time and quantity required.
Internal buffers between the processing steps serve to accumulate volumes for an affordable order distribution and to control of the quality of finished goods. Stock-keeping and stock-chasing of supplied parts is just enabled parts with a procurement cycle that exceeds the delivery time of the business when alternative options could not be found.
Present capital needs to be moved to fixed capital in order to increase the value of business, which improves the versatility of the production process and resultant quality of manufactured furniture items. For the awareness of the value-added activities in connection with a particular customer’s order, all component parts play an equally crucial function.
A hold-up in shipment can be caused by a mismatch of component supply timing versus the availability required on the production line.
More information on this topic can be found at FIRA or BIFMA.
Reassessment of Traditional Production Processes
Manufacture to order is simply the perfect method of commercial furniture production. It unites all the advantages associated with minimal cost manufacture and timely availability for customers. In addition, there is the possibility of decreasing the number of processing steps in order to obtain full, benefit from the concept of 'lean production'.
Nevertheless, to do this needs a shift in thinking and leaving deep-rooted techniques and procedures of manufacturing behind along with modifications in the organizational structure. The principle is simple and effective:
-- Manufacturing when an order comes in and suspending work when orders are not available
-- Delivery at the point when the customer pays for their goods
-- Organising production when customers, orders and due dates are specified
“Pull” principle manufacturing, such as ETO, BTO, ATO and MTO is a manufacturing model for the furniture market where the amount to be produce per line item is one or at most two. For example, construction, plant building, aircraft, vessels, bridges, and so on.
From the perspective of supply chain management, it has actually been proven that those who can achieve due dates promised to customers and clients and who also can reduce lead times, will certainly have a significant competitive advantage.
Even if the production quantities rise slightly, if push-type items (inventory) that are made by MTS can be made by pull-type production such as ATO and MTO models using IT or software, then there will certainly be greater business benefits. This where the use of an effective audit management system eg Auditform can play a significant part in controlling output quality.
ATO (Assemble to Order) of computers and production of sports bike by a well recognized international business, are examples of developing a new business design by matching the diversity of items with BTO, ETO and ATO with new-style sales and marketing approaches.
