MTO and MTS

[Former Member]

Hi,

Please let me know the significance of MTO and MTS in the business process. I went through the help document but not able to understand.

Thanks in advance.

Regards,

Siva.

[Former Member]

Hi Siva,

MTS is basically for the production of same product for a longer term without receipt of any customer order. means their is not change in production specs for long term means the same BOM, same routing, same production setup is used to produce a large number of products or batches. for e.g. any Automobile industry.

MTO as the name suggest is a order based production, means first we receive the Customer order( Sales order) and as per the order requirements the production is done. in this case every order has different specs. means the BOM,routing, Production setup will normally change for each order. Hence the scheduling is done for each order. for eg. Special purpose machine manufacturers.

Hope this helps.

regards

Kumar