Article

The Genius ERP Approach to Streamlining MTO Manufacturing

Custom Manufacturing, Engineering, Scheduling, Shop Floor - All industries

Coworkers discussing Production in plastic recycling factory

In Make-to-Order (MTO) manufacturing, products are only manufactured after receiving a customer’s order. Unlike in typical mass production, where items are produced in anticipation of future demand, MTO manufacturing enables companies to customize products according to individual customer specifications. This method of manufacturing is particularly beneficial when dealing with a diverse range of products and customer preferences.

In contrast to other types of custom manufacturing, like Engineer-to-Order (ETO) or Configure-to-Order (CTO), MTO manufacturers rely on standardized designs, allowing for shorter lead times than with these other types of custom manufacturing. Another advantage of MTO manufacturing is that manufacturers can fulfill market demands effectively while minimizing the need to carry excess inventory.

What is MTO Manufacturing?

Make-to-Order (MTO), also referred to as mass customization, allows customers to buy personalized products tailored to their specific requirements. Some of the characteristics that set MTO apart from other types of manufacturing are:

Order-Driven Production: The primary feature distinguishing MTO manufacturing from conventional mass production is that MTO companies manufacture products in response to specific customer requests, and production only begins once a customer order is received.

Shorter Lead Times: Another key feature of MTO manufacturing is the potential for shorter lead times. Because production is initiated in response to specific customer orders, manufacturers can streamline their processes and allocate resources more effectively, allowing for quicker response times from order placement to product delivery.

Flexibility: In MTO manufacturing, products are tailored to meet the unique specifications and requirements of individual customers. This flexibility extends to the design, features, and sometimes even the materials used, providing customers with personalized solutions. 

Reduced Inventory Costs: MTO manufacturing typically leads to lower inventory costs compared to other more conventional manufacturing methods. Since products are not manufactured until a customer places an order, there is less need for storing finished goods. This can result in cost savings related to inventory management and warehouse space. 

Top Genius ERP Features for MTO Manufacturing

An ERP system plays a crucial role in Make-to-Order (MTO) operations by, among other things, organizing production schedules, helping with procurement, creating accurate quotes, and tracking orders. 

Genius ERP understands the unique needs of MTO manufacturers and offers the necessary features to simplify complex operations and optimize manufacturing processes. Genius is designed exclusively for custom manufacturers and provides smooth coordination across quoting, purchasing, scheduling, production planning, accounting and more. 

Quoting and Estimating

Genius ERP significantly enhances the quoting process for Make-to-Order manufacturers. With easy access to comprehensive customer information, historical data, and pricing details, sales teams can quickly generate new product quotes. By incorporating information from similar past projects and current material costs, Genius enables MTO manufacturers to produce quotes based on actual costs. 

The ability to compare actual job costs to initial quotes helps identify discrepancies, allowing businesses to fine-tune their quoting process and enhance overall profitability. The integrated nature of Genius also ensures that quotes are based on current jobs and availability — meaning MTO shops can provide customers with reliable delivery dates.

Scheduling

Genius ERP’s scheduling tools empower MTO manufacturers to overcome bottlenecks and boost on-time delivery by allowing manufacturers to meticulously plan and manage production timelines. By offering a clear overview of the entire production process — from order receipt to final delivery — Genius ERP helps identify potential bottlenecks in advance. This proactive approach enables manufacturers to implement strategic measures to eliminate bottlenecks, ensuring a smoother and more efficient production flow.

Genius ERP’s scheduling system also easily allows adjustments to production schedules in response to changing priorities or unforeseen circumstances. This flexibility enables MTO manufacturers to adapt quickly to shifting demands, optimize resource allocation, and ultimately increase the volume of products delivered on time — increasing customer satisfaction.

Genius ShopFloor

Genius ERP’s shop floor management feature lets Make-to-Order manufacturers effectively coordinate their shop operations and track job orders. Genius ShopFloor offers a centralized platform where shop floor activities can be seamlessly monitored and managed — including real-time tracking of job orders — allowing manufacturers to stay informed about the progress of each job. 

Genius ERP enhances communication and collaboration among different departments, ensuring that everyone is on the same page regarding production status and timelines.

Genius ShopFloor streamlines workflows by integrating with all other aspects of the manufacturing process. From job scheduling to inventory management, Genius offers a comprehensive solution that enhances coordination and contributes to the overall efficiency of MTO manufacturers. This lets manufacturers deliver high-quality custom products on time and on budget.

The Right Solution for MTO Manufacturers

Selecting the right ERP system is crucial for Make-to-Order (MTO) manufacturers as it directly influences their ability to efficiently manage customized production processes. A well-suited ERP solution enhances coordination, optimizes resource utilization, and ensures accurate tracking — ultimately leading to improved profitability and customer satisfaction. 

Take a Virtual Tour of a manufacturing shop to see firsthand how Genius ERP is built to efficiently handle MTO manufacturing.

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