Make to Order
MTOA production strategy where manufacturing begins only after receiving a confirmed customer order, rather than building to inventory. Make-to-order reduces inventory carrying costs and obsolescence risk but requires shorter lead times and flexible production capabilities to meet customer delivery expectations.
RELATED TERMS
Job Shop
A manufacturing environment that produces custom or small-batch products with varied routings through different workstations based on specific job requirements. Job shops offer high flexibility to handle diverse customer orders but typically have longer lead times and higher per-unit costs than high-volume production.
Work Order
A document that authorizes and provides instructions for manufacturing a specific quantity of a product. Work orders specify the materials, labor, equipment, and steps required to complete production, and serve as the primary record for tracking job progress, costs, and completion.
Production Schedule
A detailed plan that specifies what products will be manufactured, in what quantities, and when, coordinating resources across the shop floor. Production schedules balance customer demand, available capacity, material availability, and operational constraints to optimize delivery performance and resource utilization.
Just-In-Time
A production strategy that aligns raw material orders and delivery with production schedules to minimize inventory holding costs and waste. JIT manufacturing produces goods only when needed, in the quantities needed, reducing storage requirements and improving cash flow.