THE IMPACT OF CELL STRUCTURE ON THE MTO PRODUCTION SYSTEM

Abstract

Today the customer market is becoming more demanding than ever. In many cases application of the 7R rule alone is not sufficient. The customer wants to have an influence on the final shape, form, functionality and features of the product. This forces entrepreneurs to abandon the make-to-stock (MTS) approach and adopt the make-to-order (MTO) concept, not only to satisfy the customer’s requirements better but also, for example, to reduce costs through manufacturing exactly the quantity of products that the market demands. The article describes an example of such an enterprise. This company is a manufacturer of windows, doors, roller shutters and other products. The custom products department manufactures products where the final look and functionality may be determined by the customer, who can take part in the process by selecting, for example, the shape, dimensions and accessories used. This is entirely make-to-order production. This system offers the benefits mentioned above, but on the other hand production planning is more difficult and the system requires a relatively high degree of production flexibility. The article describes how the application of simple methods of analysis may help to introduce a certain degree of standardisation of processes/operations/activities and to identify and eliminate certain types of waste from the production process.