Production Operating System A Case Study Of Make To Stock And Make To Order System

Nur Nadia Ramadhani, Md yusuf (2012) Production Operating System A Case Study Of Make To Stock And Make To Order System. Project Report. UTeM, Melaka Malaysia. (Submitted)

	PDF (24 Pages) Production_Operating_System__A_Case_Study_Of_Make_To_Stock_And_Make_To_Order_System-24_Pages.pdf - Submitted Version Download (257kB)
	PDF (Full Text) Production_Operating_System__A_Case_Study_Of_Make_To_Stock_And_Make_To_Order_System-Full_text.pdf - Submitted Version Restricted to Registered users only Download (793kB)

Abstract

Overcapacity and shortage capacity are the sources of unhealthy production systems in industries. A balance between the demand and supply is very important to ensure the continuous supply of the product to the customers. Make-to-order (MTO) and Make-to-stock (MTS) production operation systems are used to reduce the imbalance problem in the production. The aim of the study is to determine the relationship between Make-to-order (MTO) and Make-to-stock (MTS). Four objectives have been set to determine the relationship between both these systems; (i) to identify the characteristics of MTO and MTS; (ii) to identify the effect of MTO and MTS to product quality; (iii) to clarify the effect of product variety to production stability; (iv) to analyze the critical factor that contributes to the increment of the inventory level. Result of case study shows that MTO system is more applicable for customized products while MTS system for mass production product. MTO system requires more suppliers than MTS system. Compared to MTS production operating system, MTO system will give the poor quality of product. In addition, the variety of product does not affect the production stability. By analyzing the factors contributes to the increment in the inventory level, the current customers is the critical factor contributes to that. In conclusion, selection between MTO and MTS is very important on it will affect to the balance between demand and supply. Furthermore, the right choose of operation system will reduce inventory cost and potential of losing customer loyalty.

Actions (login required)

View Item