Master Planning and Scheduling, 4th Edition

11Master Planning and Scheduling in Custom‐Product Environments

Failure to plan on your part does not constitute an emergency on my part.

Back in Chapter 6, several manufacturing strategies—make‐to‐stock, package‐to‐order, kit‐to‐order, finish‐to‐order, assemble‐to‐order, make‐to‐order, engineer‐to‐order, and design‐to‐order—were introduced and discussed. Each strategy was partially dictated by the competitive environment faced by the company and the need to meet the customer at some point in time earlier or later in the production process. In this chapter our focus will be on the design‐to‐order (DTO) and engineer‐to‐order (ETO) strategies, and on the particulars of master planning and scheduling in these environments. The process of developing and introducing a new product for which no actual demand yet exists, whether it be for a make‐to‐stock or make‐to‐order product, is a unique application of the design‐to‐order or engineer‐to‐order strategy.

As a brief review, recall that companies utilizing a DTO or ETO supply chain strategy generally do not begin the design and/or manufacturing process until a customer order, contract, or letter of intent is actually in hand. Specialized industrial equipment, large passenger aircraft, high‐tech military equipment, commuter subway cars, and shopping malls are typical of DTO and ETO products. Because these products are expensive and suited for a limited number of customers and applications, their manufacturers cannot afford to design, ...