What Are The Three Types of Manufacturing?

There are multiple types of manufacturing processes businesses can choose from. More often than not, manufacturing can be simplified and streamlined, with companies operating like a well-oiled machine to fulfill orders in the most cost and time-efficient way. However, there are occasions when business owners consistently come up short in their efforts. It’s not uncommon for warehouses to be full of disused stock or empty due to a lack of forecasting.

There are three main types of the manufacturing process: MTO (make-to-order), MTA (make-to-assemble), and MTS (make-to-stock)

Make To Order

As the name suggests, make-to-order is a manufacturing process that allows a company to wait until an order is placed to begin producing the product. Often, the MTO method is used for high-value items that a customer is willing to wait for. 

Make-to-order is perfect for those companies who like to keep limited stock and can react to market demands. The only downside is that customers will have to wait extended periods to receive their products, and should there be a random influx of orders it will be difficult for the manufacturer to cope.

Make To Assemble

This manufacturing process is designed to be a cost, time, and space-saving method. Manufacturers will produce all parts in bulk, meaning an item needs to be assembled before it can be dispatched. 

For MTA to be successful, you need to be able to forecast market conditions. For example, you could decide to mass-produce your components, then the price of raw materials drops, meaning your manufacturing process costs much more than it should. Additionally, if quality control is poor, you could be left with a large volume of a few components that you can’t sell.

Make To Stock

MTS is the most common and recognized manufacturing process – as a novice, you may think this is the only one. This is when factories produce products that will be stocked in warehouses, stores, or showrooms. Assessing and forecasting demand is essential for this method to be a success. Otherwise, you could wind up with a storage facility full of products while your manufacturing team is still producing more.

To make MTS a success, you must ensure your products are readily available when the customer needs them – it’s a fine balance between supply and demand.

In Summary

Overall, these different types of manufacturing processes continue to be an important part of the industry and the economy. Cash flow, customer experience, product availability, revenue, and profits are all reliant on a seamless and refined manufacturing process. If you need assistance developing your processes – reach out today and learn more about Shark Design’s manufacturing support services. We can’t wait to help.

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