Order Entry Complete to Start Manufacture

What is Order Entry Complete to Start Manufacture?

Order Entry Complete to Start Manufacture

Order Entry Complete to Start Manufacture is a crucial concept in logistics that refers to the average lead time from the completion of a customer order to the time manufacturing begins. This process includes several sub-elements, such as order wait time, engineering, and design time. It is important to note that this concept is determined separately for different types of products, namely Make-to-Order, Configure/Package-to-Order, and Engineer-to-Order products. However, it does not apply to Make-to-Stock products.

When a customer places an order, there are various steps that need to be taken before the manufacturing process can commence. The first sub-element, order wait time, refers to the duration between the completion of the order entry and the initiation of the manufacturing process. This period may vary depending on factors such as the complexity of the order, availability of resources, and production capacity.

The second sub-element, engineering time, involves the activities required to ensure that the customer's order can be successfully manufactured. This may include reviewing the order specifications, assessing the feasibility of production, and making any necessary adjustments or modifications. Similarly, design time focuses on creating or modifying the product design to meet the customer's requirements.

It is important to understand that the Order Entry Complete to Start Manufacture concept is not a fixed duration but an average lead time. The actual time taken for each order may vary depending on various factors, including the complexity of the product, the availability of resources, and the efficiency of the manufacturing process.

Furthermore, it is essential to differentiate between different types of products when considering this concept. Make-to-Order products are manufactured based on specific customer requirements and are not produced until an order is received. Configure/Package-to-Order products involve customization or packaging of pre-existing components or products based on customer specifications. Engineer-to-Order products are highly customized and require significant engineering and design work before manufacturing can begin.

However, it is important to note that the Order Entry Complete to Start Manufacture concept does not apply to Make-to-Stock products. Make-to-Stock products are produced in anticipation of customer demand and are readily available for immediate delivery. Therefore, the lead time from order entry to manufacturing start is not applicable in this case.

In conclusion, Order Entry Complete to Start Manufacture is a vital aspect of logistics that determines the average lead time from the completion of a customer order to the initiation of the manufacturing process. It encompasses order wait time, engineering, and design time, and is determined separately for different types of products. Understanding this concept is crucial for effectively managing the production process and meeting customer expectations.