Description
Configure-to-order is the method of “effectively delaying a differentiated product for a specific customer to the last possible point in the supply network (The Push-Pull Point)”. With CTO, modular building blocks are specified in advance with which an “infinite” number of variants of a product can be configured. The building blocks (or sub-assemblies) provide the opportunity to design a customer-specific product that is “known” for the entire primary process. In addition to peace of mind and predictability, this provides financial gain through: Fast follow-up of customer requests due to less pre-engineering and prices being known Clear, error-free information flow because it is predefined No more order engineering is necessary Scale advantage with suppliers CAM programs can be used immediately Parts can be produced “anonymously” in batches during quiet periods The space created by this methodology can be used to further optimize products and processes and to tap into new innovations.
Key Learnings
- Develop a vision on an ETO to CTO transition.
- Have awareness and methods to start implementing CTO products.
- start changing their organization around a CTO process
- know the impact of a CTO transition on the organization
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