Order-oriented production, production mode features, order-oriented

Order-oriented production, production mode features, order-oriented

Order-oriented MTO (Make-to-Order) refers to Order-oriented production. In order-oriented production, the product design has been completed, and the materials used for production have not been ordered. In this environment, the sales volume is usually small, and the customer must wait for the time required for purchase and production. The full delivery lead time includes the material procurement time and production time.

Features of order-oriented production mode

Make To Order (MTO). This production mode is similar To Make To Stock (for inventory production), and ATO (Assembly To Order, for Order Assembly) together with ETO (Engineering To Order, Order-oriented design), it is a common production model in enterprises. The MTO production model has the following main features:

1. There are many product categories. Because orders are produced by a single order, and the detailed requirements of customer orders are often different, there are many product types for order-oriented enterprises.

2. Large fluctuations in demand. Such fluctuations include fluctuations in demand time and quantity. For some products, the customer may only place the next order and there will be no more orders. For some products, the lifecycle is far greater than the designed lifecycle. In addition, the number of requests is also unstable and fluctuating due to the impact of the market.

3. A single order requires a relatively small number of products, that is, "a small amount of demand is diverse ". As with MTS, a single production process is far from thousands.

4. Frequent demand changes. The Lead Time of MTO products is relatively long. As a result, the customer has a great opportunity to change the demand during this period. Such changes include: increase or cancel orders, advance or delay of delivery, increase or decrease of quantity, change of product structure or packaging method, or even change of product, change to product B.

5. There are many urgent orders and many orders are inserted. A long lead time in production often exceeds the customer's expectations. The customer increases the order priority in various ways (such as contacting the company's senior management) to obtain the expected delivery date.

6. The production process of MTO products is complicated. in the production process, key materials and complex production processes for long procurement lead time are often used.

Difficulties in order production-Management

Because of the above features of the MTO production model, it is determined that there will be many management difficulties in order-oriented enterprise management. The following briefly lists some of the management difficulties of the sales, planning, procurement, engineering and financial cost departments.

I. Sales Management

1. Customer Order Confirmation

In order-oriented enterprises, the confirmation of customer orders is very important. It directly affects the number of orders that an enterprise can obtain, and thus the business performance of an enterprise. When the current product quality is qualified as the most basic premise, the main content of the customer's order confirmation is: Delivery, price and customer personalized requirements. How can we determine the delivery date to meet the customer's expectations and leave enough time for production? What kind of price will the customer feel reasonable and profitable? How can we satisfy customers' individual needs? These are all considerations of the Sales Department in order for customers, but also the difficulty of sales management.

2. sales order change

In the MTO production model, due to frequent order changes, the demand has a great impact on the production plan. We often hear planners in the production department complain that the requirements of the Sales Department have changed, and good things are not shipped, and there is no things to urge the goods. The people in the sales department have difficulties, the customer's demand will change, and the sales and shipment plans will certainly change. Isn't it true that "the customer is always right? In addition, the execution of order changes is also a difficulty in business management. The information of changes, such as order increase, decrease, and cancellation, takes a long delivery period, and it is difficult to achieve consistent steps during the execution process. It is often because the customer has canceled the order and the procurement is still urging the supplier of raw materials. The result is that the customer does not need the goods, and there is a lot of inventory. When tracing responsibility, management personnel often fail to find out who should be responsible for this situation; departments are responsible for each other.

3. Tracking of sales orders

In order-oriented enterprises, the customer satisfaction is largely dependent on the enterprise's ability to ensure that orders are delivered on time. The customer will pay close attention to the execution status of some urgent orders and often ask the sales staff about the actual progress. This requires the sales personnel of the production enterprise to have a good understanding of the whole process of order execution. In real business, the customer often calls the customer and the sales staff is busy for half a day: confirm with the production plan, confirm with the purchase, and confirm with the workshop supervisor. Many enterprises have set up a "merchandiser" position to track the order execution status and ensure that the order is delivered on time. This usually requires a lot of manpower and energy.

4. sales order quantity control

Generally, orders for order manufacturers have strict limits on the order quantity: Many or fewer deliveries are not allowed. Due to factors such as loss of production or temporary order changes, one order may have to be delivered multiple times. In this way, sales personnel are required to control the order execution quantity and remaining quantity, and communicate well with the customer to ensure delivery by order.

5. sales order unit price/Amount Control

Many order-oriented enterprises have strict product price management and generally require a minimum price control. At the same time, the amount of the sales order must be controlled in segments; orders of Different amount levels should be approved by different levels of persons.

6. Customer Credit Limit Management

Enterprises that are oriented to order production have both cash and credit sales. Credit sales customers must manage credit lines. To reduce the operational risks of enterprises. The credit limit can be set to the quantity or amount of each product.

Ii. Production and Plan Management

1. Material/capability plan

The plan for order production is very important. A well-planned plan can not only improve customer satisfaction, but also improve production efficiency, while maintaining inventory at a reasonable level. If the plan is not done well, the inventory will be high, but the production line will be disconnected, and the customer's delivery will fail. MTO's products are generally complex and complex in processing, making it difficult to schedule materials and capabilities manually. In particular, calculating the quantity of shared materials and allocating the capacity of shared equipment or production lines is often the biggest headache for planners. In addition, due to frequent material shortage due to incomplete planning, the production efficiency and profit of enterprises are greatly swallowed up. There is also a different pace of various processing departments, making the final assembly department often "loose and tight": the first half of the week or the first half of the month did not work, I can't finish working overtime in the second half of the week or the second half.

2. Task Order Change/restructuring

Due to the constant changes in customer requirements, the production task list is often changed or restructured, affecting normal production. It is often seen that the materials in the warehouse have been delivered to the production line, and the demand has been canceled; or A has been processed to semi-finished products, and customers have to wait for A and B. In addition, the handling of such changes and restructuring also increases the difficulty of production planning and implementation.

3. Workshop Management

MTO enterprise's product processing process is generally complicated, so it is difficult to manage the workshop. When dispatching jobs, consider order urgency, whether the materials are complete, whether the equipment load is reasonable, whether the mold condition is good, and whether the skilled personnel are in place. At the same time, we need to do a lot of manual process reports, and even calculate the hourly wage of workers.

4. Material Substitution

During the production arrangement, the replacement relationship of materials should be considered for the co-use of materials to make rational use of existing inventory. Some material substitution is temporary, while some material substitution relationships are always effective. For special materials belonging to a single customer order, it is more important to consider whether the materials purchased for this order can be applied to other orders. It is necessary to ensure the rational use of existing inventory, and ensure that the special materials corresponding to each customer's order will not be mixed.

5. Outsourcing Management

Many MTO Enterprises require external association management. Outsourcing methods include outsourced external processing, outsourced processes, and outsourced procurement. For example, some enterprises provide Blank materials to external suppliers, and the External Manufacturers process the workpieces. Some enterprises also entrust special processes such as paint and electroplating to specialized paint and electroplating factories for processing; other enterprises only provide drawings to external manufacturers and then place orders for them. Outsourcing order delivery management, product quality, matching management of the number of processed parts to be processed and received are all important and difficult points in outsourcing processing management. The management of specialized outsourced materials for each customer's order is also the difficulty of Outsourcing Management.

Iii. Procurement Management

1. Purchase Order Management

In the procurement management, the management of procurement orders is a core. It includes the generation of purchase orders (most of which are from the procurement application of the business department), the licensing system, review, and delivery to the supplier, and the reminder of the order execution progress, notifying the warehouse to receive goods by order, financial invoicing and payment are required based on the order quantity and receipt quantity. How to ensure timely delivery of suppliers at appropriate prices is the focus of procurement management. In actual business, production line shutdown is also very common due to delayed delivery of purchased materials. In addition, pay attention to the different requirements for materials for different orders. A common example is the customer's Logo printed on the product, and the opening head printed on the outer packing box. Each detail of the requirements for each order should be followed and met.

2. Purchase Price Control

In the MTO mode, because the special materials for the corresponding order adopt the "Lot for lot (batch to batch)" procurement strategy, there will be more purchases in batches. As the supply market changes, the price of the same product will fluctuate. In the procurement process, many enterprises pay great attention to the control of procurement prices. Some enterprise procurement departments even set up a position such as "Nuclear price". Each supplier needs to audit the price of each material to reduce the enterprise's procurement costs.

3. Supplier Management

Another important responsibility of the procurement department is supplier management. This includes initial supplier development, supplier audits, supplier supply ratio settings, and supplier reviews. Many enterprises establish AVL (Approved Vendor List, qualified supplier List) for each item. Only suppliers that meet the requirements after the audit can become AVL suppliers. AVL suppliers are qualified to provide materials or services. The same item is generally not only one AVL supplier. Therefore, when purchasing the next purchase order, the proportion of the purchased item should be allocated based on the supplier's previous supply performance and price. Suppliers are evaluated quarterly or even every month in terms of on-time delivery, price, service, willingness to cooperate, and other aspects to help suppliers improve and improve their supply performance. How to objectively and fairly evaluate suppliers and make future procurement easier through evaluation is a difficulty in supplier management.

Order-oriented production-comparison with other orders in advanceIv. Project Management

1. Engineering Data Integrity

Engineering materials include Material code, engineering drawings, BOM (Bill of Material, Bill of materials) and process routes. Integrity and correctness are included. The basic management of many enterprises is relatively weak, and the problem handling and feedback processes are not perfect. It is often found that the material drawings, BOM and production line products of the Engineering Department are inconsistent. When engineering data errors are found in the production line, the engineer is not required to modify the data, but to directly use the materials or processing technology that he deems reasonable in production based on experience. This results in incomplete engineering materials.

2. Engineering Change Management

In MTO Enterprises, especially OEM and ODM enterprises, engineering changes are very frequent. Engineering Change methods include: Natural switch, immediate switch, supporting switch, and key component switch. If the project change is not properly managed, the new product's cut-in time may be delayed, the stock of materials to be switched is sluggish, and the switch is not properly implemented. I have encountered this situation: the Engineering Department has changed two versions, and the production department is still producing the old version of the product. The management of engineering changes is a difficult point for MTO Enterprises, especially some supporting enterprises.

Classification points customized by customer orders

V. Cost Management

1. cost prediction

For enterprises that produce by order, the customer will provide drawings or other relevant information and request a quotation. Enterprises need to simulate the calculation of materials, work, and fees based on the product structure and the latest market supply, and then make a quotation for the customer with reasonable profits. The simulated quotation and cost prediction of customer orders are a difficult task for sales personnel or cost accounting.

2. Cost Control, accounting and Analysis

During the order execution process, the actual cost of each sales order should be calculated and controlled to ensure the reasonable profit of the order. In actual business, due to difficult data collection and complicated accounting methods, cost accounting for each sales order is often not possible; cost control and profit analysis for each sales order cannot be achieved.

In the actual business management of enterprises, these business management problems often occur at the same time and affect production. If these factors cannot be distinguished, managers cannot find the key points of the problem and formulate corresponding strategies. For example, I have encountered a situation where the company's sales volume has not increased, and the inventory level has remained high, or even gradually increased. Enterprise Managers have been unable to find the root cause of the problem. Later, I helped the company analyze the problem from several aspects and found that there are many causes:

(1) When the customer increases the order, the sales personnel should confirm with the planning personnel or the procurement personnel whether the delivery period can be reached; however, when the customer canceled the order, the customer did not investigate the material delay caused by the cancellation of the order (mainly some special materials) and reported it to the customer for joint solution.

(2) unstable product quality due to unreasonable production process and process. The waste rate and safety stock based on this setting are too high, which leads to an increase in the quantity of raw materials purchased and the production quantity of self-made parts, this leads to an increase in inventory.

(3) The engineering change management process is incomplete. When setting the effective date of the engineering change, the inventory of the existing and on-going materials to be switched is not taken into account. After the change, all the new materials will be used, and all the materials to be switched will become dull materials.

(4) the inventory data is inaccurate, and the warehouse's items are not consistent in a timely manner. There is no account, but there are a lot of physical objects; as a result, the production department repeats production, and the procurement department places orders repeatedly.

(5) Procurement Order review problems some purchasers do not determine the quantity of procurement orders based on the procurement application, but modify the order quantity at will. The raw material inventory is high.

There are other reasons such as chaotic production site management and the accumulation of a large number of semi-finished products and raw materials on the production line. Therefore, it is very difficult for order-oriented production enterprises to manage their businesses. How can we improve the management level, enhance the coordination and flexibility of production, and improve production efficiency? How does MTO bring profits to the enterprise through its informatization? This needs to be achieved through informatization and business management improvement.

Order-oriented production-features of the Information System

Based on a precise understanding of the business needs of order-oriented production enterprises, combined with advanced management ideas at home and abroad, there are some software such as SAP, Class 4, and domestic

Gantt ChartKingdee has mature ERP software solutions for order-oriented production.

These solutions generally have the following main features:

1. using sales orders as the source of demand, you can easily track the relevant documents based on the order number throughout the execution process of planning, production, and procurement orders, and view the status of the relevant documents to clarify the order execution status; you can use Gantt charts and other methods to display images intuitively.

2. Provides price management for sales orders and supports separate authorization of price fields (unauthorized personnel cannot view the unit price and amount) to control customers' credit.

3. Support the Order Change handling process. When performing order change, you can find all associated production task orders and purchase orders by using the sales order number. Accordingly, the salesperson notifies the planners and purchasers to change the content of the relevant documents at the same time and report the impact (for example, the sluggish inventory of special raw materials or semi-finished products due to the reduction or cancellation of orders) negotiate with the customer. To ensure that order changes can be completely executed.

4. Part of the materials applied to the order manufacturer are general materials irrelevant to the order, and the other part is special materials related to the order. This requires that the materials be divided into different attributes. During MPS/MRP calculation, the system applies different planning policies based on different attributes of the materials to generate correct planning orders. Therefore, a system oriented to the order production mode can correctly calculate the requirements of shared parts like ordinary ERP software, and can also correctly calculate the demand for specialized materials for each order according to the order.

5. during the scheduling, the system displays the information about the production task list, the complete material status, and the productivity/Load Status of the Work Center on the same interface, it facilitates scheduling by planning personnel, and even supports visual scheduling. Improve the efficiency of the scheduler.

6. the system support workshop production supervisor can set a priority method based on the enterprise's production schedule (for example, the first-come-first-served priority method, the shortest Priority Method for the remaining time, and the earliest completion priority method ), determine the work order of each work center. The goal is to ensure that materials can be matched and processed after arrival on time, and the production can become stable.

7. Complete management processes for procurement, production, and warehouse receiving of special or special materials. Both the production task order and purchase order have order tracking numbers (in many cases, order numbers are used) to facilitate internal communication and exchange, and order tracking.

8. Provides order cost accounting and analysis functions. You can forecast the order cost by simulating the quotation. The order cost accounting function is used to calculate the actual cost of each sales order and calculate the profit of each sales order.

9. It has functions such as "panel management" and "visualized scheduling" to meet the needs of Enterprise Business Management and lean manufacturing.

The above are the characteristics of ERP systems that meet the requirements for order production business compared with general ERP systems. Of course, common ERP systems have functions and features such as business finance integration, data integration, process-driven, and business warning.

Order-oriented production-considerations for Information System Selection

When selecting ERP for order-oriented production enterprises, the main problems to consider are as follows:

(1) Does the alternative system have the above ERP System for order production?

(2) is the alternative system suitable for the application level of enterprise users?

(3) What is the implementation service capability of the alternative system? Is there a strong local service team?

(4) What is the scalability of alternative systems? Can it meet enterprises' individual needs?

(5) Cost effectiveness of alternative systems.

Order-oriented production-value of Informatization

Through information technology, it can help order-oriented production enterprises solve the current difficulties in business management, improve the operational efficiency of enterprises, reduce costs, and increase profits. Specifically, informatization can bring the following values:

1. Improve order delivery rate and customer satisfaction

In order-oriented production enterprises, the on-time delivery rate of orders has always been a key indicator affecting customer satisfaction. Without the help of information technology, it is difficult for enterprise managers to identify and solve various problems. It is always known that there is an exception when the last delivery fails, and every day is exhausted ". Therefore, it is impossible to focus on the control and continuous improvement of the production process, and to make the enterprise develop along a sound track. Through the information system, management personnel can predict the problem or discover the problem as soon as it appears. In this way, the problem can be solved in a timely manner, minimizing the impact on delivery. Statistics show that many order-oriented enterprises only deliver 60% to on time before informationization is implemented ~ 70%. After the successful implementation of the ERP system supporting order-oriented production, the customer's order delivery rate increased to over 90%.

In addition, the increase in delivery rate and customer satisfaction directly increases the number of orders and the competitiveness of enterprises in the market.

2. Improve Production coordination and efficiency

After the enterprise implements the information system, the efficiency and accuracy of business operators have also been greatly improved. Timely production information and accurate inventory have laid the foundation for the proper formulation of production plans. This undoubtedly greatly improves the enforceability of the production plan. Production coordination and production efficiency have been greatly improved as business departments keep pace. Due to coordination of various business departments, the problem of material shortage and disconnection can be completely solved.

Iii. Inventory reduction

Information technology can reduce inventory in multiple aspects: the inventory quantity is accurate and timely in the system, so as to avoid excessive production and procurement due to inaccurate inventory; the planned enforceability is enhanced, and the quantity of safety stocks required is reduced. the sluggish inventory caused by material changes is eliminated through engineering change management and replacement of materials in the system; the system controls the source and approval permissions of the purchase order to reduce the excess inventory caused by the number of manually entered orders. In addition, the system can also control the number of items received in the warehouse to be greater than the number of purchase orders. The survey report shows that successful informatization can reduce the inventory by about 30%.

4. Improve the business level of enterprise managers and operators

Enterprise Informatization is not enough to buy an ERP software. With the help of the ERP system provider, we should invest a lot of manpower and energy in the implementation process to analyze the business and understand the core management ideas of the ERP system, find a solution that suits your enterprise's development needs and create value for the enterprise by implementing this solution. In this process, enterprise management personnel and all project participants will be systematically trained to deepen their understanding of the essence of the ERP system and establish a global concept, improve the ability to analyze and solve problems. In addition, by analyzing and processing the timely information provided by the system, the enterprise's management level and operation level are raised to a new height.

5. Improving the viability of Enterprises

At present, the informatization of enterprise management is no longer a competitive advantage, but a basis for the survival and development of enterprises. Without the support of information technology, enterprises cannot face complicated and changing market environments, meet increasingly demanding customer needs, and survive and develop in the market competition. By selecting an ERP system that meets the requirements of the MTO model, enterprises oriented to order production can quickly respond to complicated and changing market environments, quickly meet customer needs, and greatly improve production efficiency, reduce waste and ineffective operations, increase profits, improve the competitiveness of enterprises, and gain greater development space.

Order-oriented production-improved business management

Enterprises oriented to order production need to use information technology to help enterprise managers understand the business of enterprises and promptly discover and solve problems. Enterprise Business Management should also use advanced management methods and tools to improve the management level. Considering the current situation of domestic order-oriented enterprises and the advanced management ideas at home and abroad, it is recommended that enterprises review and continuously improve their business systems from the following aspects, improve business management and competitiveness.

1. Optimize manufacturing strategies to improve the ability to quickly respond to customer needs

Comparison between different manufacturing strategiesCommon manufacturing strategies for enterprises include: MTS (Make To Stock), ATO (Assembly To Order, Order-oriented Assembly), and MTO (Make To Order, Order-oriented production) and ETO (Engineering To Order, for Order design ). The delivery lead time of customer orders is different based on different manufacturing strategies. The comparison relationship is shown in the right figure:

From the figure on the right, we can see that the manufacturing strategies using MTS and ATO are shorter than the early stages of MTO delivery. From the perspective of quickly meeting customer needs, can MTO's manufacturing strategy be changed to MTS or ATO? However, given the diversity of MTO enterprise products, MTS's manufacturing strategy is obviously not suitable for actual business. However, it is feasible to change the MTO manufacturing strategy to the ATO manufacturing strategy. The Dell Computer Production Method is a successful case of changing the traditional computer production MTO manufacturing strategy to the ATO manufacturing strategy. This is a verified method and is worthy of reference by managers of MTO Enterprises.

How can we change the manufacturing policy? This kind of change is not a leader's sentence. It needs to first standardize and modularize the product from the product design, and then adopt the so-called "Double plan" approach in the production plan. The Production Department is first based on the market forecast Production Standardization module, and then assembled according to the customer's actual order. Because the prediction is a standardized and general module, rather than the final product that the customer really needs, therefore, the accuracy of prediction is greatly improved (the accuracy of prediction products is higher than that of prediction products ). This not only reduces the delivery lead time, increases customer satisfaction, but also minimizes the impact of demand changes on production.

2. Improve Production layout and operations

There are three production la s for manufacturing enterprises: product-based layout, processing-based layout, and project-based layout. The project layout is mainly used for large-scale projects, such as construction, aircraft and ship manufacturing. This article mainly discusses product-based layout and processing-based layout.

In China, many MTO Enterprises Adopt the Layout Based on processing methods, that is, the layout of Traditional workshops. Install devices with the same or similar processing functions together for unified management and production scheduling. The main devices are general-purpose devices. The requirements for workers' skills are more specific: The vehicle worker only opens the lathe, And the milling worker only operates the milling machine. This layout adopts a discrete production mode. The advantage of this production method is that it combines the same requirements for production, and does not need to change the model repeatedly to reduce the time for changing the model. In addition, it improves the utilization rate of equipment by uniformly arranging the production of machines. However, this production method has many defects: large batch production, long production cycle, high inventory of semi-finished products, and unbalanced output, which have a great impact on the production of post-processes (or not feeding, as a result, the final assembly process is often "loose and tight" (the first half a month/week is not working, and the second half a week/week is not working ). The customer's order may be delayed or even lost.

Another layout method is product-based layout, such as the U-shaped line layout. To use this method, you must first classify the products according to the processing process. Then, you can sort and install small specialized devices in the order of processing to form a production line or production unit. Each production line or each Processing Unit processes certain types of products. In this way, we need to train all the workers into multiple hands and operate different devices. After automation, a worker can manage several different devices at the same time. At the same time, workers in a production unit can assist each other to improve overall efficiency. If defective products are produced, feedback and handling can be made quickly. This layout adopts continuous production or repeated production. Petroleum, chemical, and pharmaceutical industries are typical industries that adopt product-based layout for continuous production. Many industries such as machinery manufacturing, automobiles and accessories, including some enterprises that adopt order-oriented production, have also successfully applied this product-based layout method for repeated production. Compared with the workshop layout, the advantages of this production layout are: greatly improving the continuity of production; small production batches (or even single-piece streams); short production cycle; greatly reducing the inventory of semi-finished products; the production of the entire plant becomes stable. The most important thing is that it can well adapt to the customer's "a small number of diverse" needs, so even in a low-speed market environment, it will have a very powerful vitality. To achieve the product-based layout, pay attention to the balance of production line capacity; determine the number of each device in the production line based on the balanced production capacity.

MTO Enterprises can quickly increase or reduce production capacity by changing the workshop layout to a product-based U-shaped line layout. This can better meet customer needs; at the same time, the production is more continuous and balanced, and the production efficiency is greatly improved; the inventory of semi-finished products is greatly reduced.

3. "One basic idea and two pillars"

In his book "Toyota Production System (Toyota Production Method)", Toyota Nakhon Nakamoto pointed out that "I think Production efficiency may increase by 10 times as long as waste is eliminated. This idea is exactly the starting point of the current Toyota Production method. 'Completely put an end to waste 'is the basic idea of Toyota's production method, and the two pillars throughout it are: ① punctuality; ② Automation ". Undoubtedly, it is this belief that it is supported that nagano-yi is committed to reforming the old production system of Toyota and leads Toyota to success along the lean production path. This belief is of great guiding significance to enterprises that share the same MTO production mode. The following describes how to completely eliminate waste, punctuality, and automation.

Eliminate waste

Daniel proposed a very important formula to illustrate what is waste:

Job = labor + ineffective labor (Waste)

It is believed that the efficiency can be improved only when ineffective labor becomes zero and the proportion of work is close to 100%. Seven common waste phenomena are also pointed out:

(1) excessive production waste

(2) waste caused by improper methods

(3) Handling

(4) ineffective labor during processing

(5) Inventory

(6) waiting

(7) poor quality

Just In Time)

The definition of punctuality is: "The required parts are provided to each process according to the required quantity at the required time ".

In the traditional production management mode, it is impossible to implement punctuality when the production plan reaches each process and the parts are delivered to the next process after the previous process is completed. To achieve punctual production, we must make innovations in concepts, adopt a similar approach similar to taking the goods on shelves when the customer needs it in supermarkets, and change the driving method of production, when parts are required for the next process, the previous process is used. Change "Push-type" production to "Pull-type" production. Dashboard management is used. The six basic principles of panel management are:

(1) After the process, pick up the goods according to the moving panel to the previous process

(2) the previous process is produced based on the production dashboard.

(3) No kanban, no shipping, NO production

(4) The dashboard must be attached to the objects related to the job.

(5) of qualified products must be produced

(6) gradually reduce the number of dashboards

Automation

The automation of Toyota's production method is not simply "Automation" of machinery, but "Automation" of human factors ". By installing the "positioning stop method", "fully operating system", "Quality Insurance device", and so on, the machine is endowed with human intelligence. When an exception occurs, the machine is automatically shut down. The worker needs to check the cause and handle it. In this way, a worker can manage several different machines at the same time.

Automation is used to prevent ineffective manufacturing at the production site and prevent defective products. Through automation, "visual management" can be fully implemented ". This allows the production management personnel to promptly discover and solve problems.

By completely eliminating waste and implementing production punctuality and automation, MTO can greatly reduce the production costs of enterprises, improve production efficiency, and increase the profits of enterprises.

Vicious Circle caused by mass production4. Reduce production batches and respond as needed

Traditional mass production will bring production into a vicious circle shown on the right:

This cycle is: adopting mass production-> increasing queuing time for production orders in each processing center-> increasing production lead-up-> failing to deliver customer orders on time-> setting a longer standard manufacturing lead-> the customer is earlier order-> order quantity is greater-> production batch is larger. This is a vicious circle. The solution is to reduce the number of production batches.

Only when batch production is reduced can enterprises respond on demand to meet customers' "Multi-variety, less batch" needs. At the same time, the batch production is reduced, the waiting time for processing of orders is reduced, and the pre-release time of production is reduced, so that more customer orders can be obtained. In addition, production can be balanced and the production cost will be the lowest only when the batch production is reduced.

To reduce the number of production batches, we need to change the production layout, improve jobs, and adopt the Rapid Mold change technology. Many MTO companies believe that fast mold change should be achieved by purchasing high-performance large devices. In fact, this understanding is wrong. In the concept of Toyota's production method, this is a waste. It is useless to improve system efficiency and flexibility. Toyota is more inclined to use the wisdom of managers and operators to gradually improve the mode change method and achieve rapid mode change. Some enterprises think that their enterprises cannot quickly change their models (especially some factories that use heavy molds, such as factories ). However, the process of Toyota's die-changing press may be helpful to such enterprises:

It takes two or three hours for the die-changing time of the punching machine within the company of tianda automobile industry to change the die-changing time on May 1, 1950. By 1960, with the company's internal implementation of "balance", the time will be greatly shortened to less than 1 hour, and there will be up to 15 minutes. It may take up to three minutes after January 1, 1975.

----- Ye Nai-yi Toyota Production System Toyota Production Method

When the customer's order quantity is not large, many MTO Enterprises are producing inventory to take advantage of production capacity. Toyota does not. Toyota is taking advantage of this time to allow operators to perform Model Changing exercises through constantly changing products. In this way, when the customer's order volume is large and the demand is "a small amount of diversity", frequent mold changes will hardly affect production.

5. Continuous improvement towards Lean Production

The development of the world economy, including China, is cyclical. Sometimes, the economy grows rapidly; sometimes, the economy grows slowly. When the economy is growing fast, many MTO Enterprises are struggling to cope with seemingly endless customer orders and are not aware of the importance of improving production layout, manufacturing strategies, and implementing lean production. These enterprises are now facing a market environment where raw material prices increase, labor costs increase, and customer requirements become harsh. Or when the economy enters a low-speed growth stage, these enterprises will soon lose their competitiveness and be eliminated by the market. Therefore, it is imperative for MTO to improve business management.

However, "Rome was not built in one day ". MTO Enterprises should adhere to the concept of continuous improvement while improving business management and moving towards lean production. Many enterprises initially learn the JIT Management Method and think that its core is "zero inventory when there is goods and no goods ". As a result, all the safety stock of the Enterprise will be quickly removed. Of course, it will soon be found that the production line is frequently broken, and the customer order is greatly delayed. This is actually caused by a thorough understanding of JIT, and it is also the result of an urgent request. At present, the industry recognizes that the core of JIT is "eliminating waste and continuously improving ". It is emphasized that through continuous improvement, ineffective operations (Waste) can be eliminated to reduce inventory and achieve continuous production and improve production efficiency.

Therefore, in the process of pursuing lean production, enterprises must specify the target and the process of achieving the target. Through the use of collaborative development, comprehensive quality management, and automation of human factors and other lean production methods, continuous improvement, and gradually achieve the goal.

Vi. Strategic Cooperation to enhance supply chain competitiveness

With the intensification of international competition, more and more enterprises realize that the current competition is no longer the competition between enterprises and enterprises, but the competition between the supply chains of enterprises. In addition to internal management, MTO Enterprises should also seriously consider how to unify their customers and suppliers to improve the competitiveness of the entire supply chain.

First, MTO Enterprises should establish strategic partnerships with customers and suppliers.

Only when enterprises in the Supply Chain release their opposition and establish strategic partnerships can they work together to improve the competitiveness and profitability of the entire supply chain. The profits of the entire supply chain will be reasonably distributed to various enterprises in the supply chain, so that each enterprise can develop for a long time. When Toyota was in distress, it was the help of strategic suppliers that allowed Toyota to go through the difficult times and go to glory.

Information should be shared among all links in the supply chain and communication and cooperation should be strengthened to eliminate waste and maximize supply chain efficiency.

Communication and information sharing between supply and demand links in the supply chain are very important. Effective and sufficient communication is essential to reduce the costs of the entire supply chain and eliminate waste. For example, merchants in the supply chain can use EDI (Electronic Data Interchange) to automatically transmit and convert information, thus greatly reducing communication costs and avoiding information errors; other MTO companies adopt the "package order plus Delivery Plan" to the supplier as the basis for production, delivery and settlement to reduce order processing costs; some enterprises have also reduced the costs of the entire supply chain by helping suppliers improve management and reduce production costs. Other methods include collaborative development and joint cooperation to reduce transportation costs and distribution costs.

By improving the competitiveness of the entire supply chain, the competitiveness of enterprises will be enhanced. This is also the reason why supply chain management has been paid more and more attention by enterprises in recent years.

The above are some suggestions on how to improve the business management level for domestic order production enterprises. The goal is to help enterprise managers establish innovative ideas and review the production and business management of enterprises from a new perspective; to find a better way to balance the satisfaction of customer needs, the relationship between the improvement of production efficiency and the decrease of inventory level.