A general document on multiple production methods and hybrid modes (ATO, MTO, CTO, MTS, MPM), different production modes and their differences.

1. MES Manufacturing Execution System MES is not just a single information system of the factory, but a system integrated horizontally, vertically and between systems, the so-called management system. For various enterprise information systems that have received attention in recent years, such as SCP, ERP, CRM, and data warehouses, as long as they include the factory object, they cannot be separated from MES.

2. Master Production Schedule Master Production Schedule (MPS) is a planning tool that mainly plans materials with independent demand (what to do and when to do it). It is a bridge between market demand and factory capacity. Its output can be used as the source of MRP.

3. Material Requirements Planning Material Requirements Planning (MRP) refers to converting various demands (orders, forecasts, master production plans) into material demand plans (what to produce and when to produce, what to purchase and when to purchase) based on information such as product structure (BOM), inventory, and basic material data.

4. MTO Planning MTO Planning (MTO Planning) is a calculation method that adds calculation according to the plan tracking number on the basis of MRP logic. It is an enhanced function of MRP.

5. Independent Demand Independent Demand means that the demand for a material is independent of the demand for other materials, that is, the demand for this material is not affected by the demand for other materials. For example, the demand for finished products in an order.

6. Make to Stock Make to Stock (MTS) is a type of production that completes product production before receiving customer orders. Product production is based on forecasts rather than customer orders. After receiving customer orders, products are shipped directly from the finished goods warehouse. The purpose of production is to replenish inventory. The delivery lead time is only the delivery processing time.

7. Engineering To Order (ETO) means that after accepting a customer order, the customer's needs are defined and the product is designed. First, the product specifications are defined, then the bill of materials is developed, the required materials are ordered, and production capacity is reserved. The entire delivery lead time includes design time, material procurement time, production time, and delivery processing time.

8. Make to Order (MTO) products are designed before receiving orders. Materials are purchased and then produced after receiving orders. In this way, the entire delivery lead time includes material procurement time, production time, and delivery processing time.

9. Assemble To Order (ATO) means that common parts are produced and stored in inventory before receiving customer orders, and then assembled into final products after receiving customer orders. This production method can be used when the product has many optional features and the delivery time is particularly tight.

10. Configuring to Order Configuring to Order (CTO) is a new production method. It combines the characteristics of design to order and production to order. But it is more dependent on computer technology. It is aimed at the situation where the product has a large number of optional parts. First, the relevant options are defined, and the customer configures according to these options. During the configuration, the software system can complete the product design and generate a temporary new bill of materials. This method can reduce the time and data spent on design, thereby shortening the delivery lead time.

11. APS Advanced Planning and Scheduling System APS (Advanced Planning and Scheduling) is used to solve production scheduling and production dispatching problems, which are often called sequencing problems or resource allocation problems. In discrete industries, APS is used to solve the optimization scheduling problems of multiple processes and multiple resources; while in process industries, APS is used to solve the sequential optimization problems.

12. Safety Stock Safety Stock refers to a certain amount of inventory kept as a buffer to ensure the normal operation of production and sales, so as to avoid the impact of material shortage on production and sales. Usually, the safety stock is the lead time of the material multiplied by the unit demand of the material.

13. Material structure (product structure) Material structure (BOM, Bill of Material), also called product structure or formula, refers to the composition of materials (usually finished products, semi-finished products, parts) - which subordinate materials the material is composed of, how much each subordinate material is used, its corresponding attributes, etc. BOM is one of the most important concepts in the MRP system.

14. Fixed lead time Fixed lead time refers to the portion of the production procurement lead time that is not subject to batch adjustment, mainly including the time required for product design, production preparation, equipment adjustment, process preparation, etc.

15. Vary lead time Vary lead time refers to the portion of the production lead time that is affected by the demand batch. When taking the number, it represents the total time required to produce the variable lead time batch minus the fixed lead time.

16. Lead Time Offset Lead Time Offset refers to the time between the material demand date and the demand date of its superior material. Some materials do not need to be invested at the beginning, but are needed after a certain period of time. For example, in shipbuilding, the input of materials is gradual rather than all at once. In order to reduce inventory, purchase or production is carried out only when needed. Load Load refers to the amount of work completed or planned to be completed by a work center in a specific period of time.

17. Capacity Capacity refers to the amount of work that a work center can handle in a specific period of time.

18. Rough-Cut Capacity Planning Rough-Cut Capacity Planning (RCCP) only estimates the key production capacity required by the master production plan and gives an overview of the capacity requirements. The rough-cut capacity planning process directly links the master production plan with the key work centers that perform these production tasks. Therefore, it can evaluate the feasibility of the master production plan from the capacity perspective.

19. Detailed Capacity Planning Detailed Capacity Planning (CRP, Capacity Requirement Planning), also known as capacity planning, converts the production plan generated by MRP operation into the load (working hours) on the work center, thereby converting material demand into capacity demand.

20. Enterprise Resource Planning Enterprise Resource Planning (ERP) refers to a planning system that includes all resources and activities in the operation of an enterprise. It covers various fields such as production, procurement, sales, R&D, finance, and personnel. More importantly, it also includes subordinate enterprises in different regions in the management. Therefore, from the perspective of the software system, the system not only includes the above modules, but also includes remote functions such as EDI (electronic data interchange). The technologies used should include GUI (graphical user interface), C/S structure or three-tier structure, and the use of fourth-generation languages.

21. Gross Requirement Gross Requirement refers to the required quantity of a specific material calculated based on the demand source (BOM decomposition will be performed if necessary), without considering factors such as existing inventory, expected inventory incoming, and allocated quantity.

22. Net Requirement Net Requirement, relative to gross demand, refers to the demand quantity after taking into account factors such as existing inventory, expected inventory, and allocated quantity from the gross demand for materials.

23. Scheduled Receipts Scheduled Receipts refers to the quantity that can be received in the future, including confirmed purchase orders and production orders. It is also called in-transit quantity.

24. Allocated Quantity Allocated Quantity refers to the inventory that has been allocated to a specific production order but has not yet been picked up. It is mainly considered to accurately handle inventory during MPS/MRP calculation.