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According to the characteristics of the process, manufacturing production can be divided into two types: continuous production and discrete production.
Continuous production refers to the uniform and continuous movement of materials in a certain process sequence, constantly changing the form and performance in the movement, and finally forming the production of products. Continuous production is also known as process production, such as the production process of chemical industry (plastics, pharmaceuticals, soaps, fertilizers, etc.), oil refining, metallurgy, food, papermaking, etc.
Discrete production refers to the discrete movement of materials in a given process sequence, constantly changing the form and performance in the movement, and finally forming the production of products, such as steel rolling and automobile manufacturing. Rolling is the rolling of a single raw material (ingot) into multiple products (plates, profiles, tubes); Automobile manufacturing is the assembly of multiple parts into one product.
The production of discrete parts, such as automobile manufacturing, is also known as machining and assembly production. The manufacture of machine tools, automobiles, diesel engines, boilers, ships, furniture, electronic equipment, computers, clothing and other products all belong to processing and assembly production. In the process of fabricated and assembled production, the product is assembled from discrete parts.
This feature makes it possible for the components that make up the product to be manufactured in different regions and even different countries. The organization of processing and assembly production is very complex, which is the focus of production management research.
According to the characteristics of enterprise production, it is divided into two types: make-to-stock (MTS) and make-to-order (MTO).
Stock-based production, also known as inventory-based production or production by inventory, is based on the market demand, planned production, and products are in stock. In order to prevent inventory backlog and out-of-stock, the focus of production management is to grasp the connection between supply, production and sales, organize the balance between all links of the production process according to the "quantity", and ensure the full completion of the planned tasks. The degree of customer customization of this production method is very low, and it is usually standardized and large-scale production in turns, and its production efficiency is relatively high.
Made-to-order production refers to production to the user's order. Users may put forward various requirements for products, and after consultation and negotiation, confirm the requirements for product performance, quality, quantity and delivery time in the form of agreements or contracts, and then organize design and manufacturing. For example, the production of boilers, ships and other products belongs to the production of order.
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Stock-based production refers to the production of existing standard products or product series according to the market when no user orders are received, and the purpose of production is to replenish the finished product inventory and meet the needs of users by maintaining a certain amount of finished product inventory. For example, the production of bearings, fasteners, small motors and other products is a stock-ready production.
Stock-up production product characteristics: strong versatility, high degree of standardization, and a wide range of users.
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Made-to-order production is production made to a user's order. Users put forward a variety of requirements, including product performance, quantity, etc., after negotiation to determine the best and delivery time and other factors, and then group the design and production. Such as ships, large industrial boilers, etc.
Stock-based production, on the other hand, is the production of existing standard products or product series, and the purpose of production is to replenish inventory. We can meet the needs of users at any time through the inventory of finished products, such as: the production of household appliances Haido Fenju Jiaofeng with hair, standard parts, automobiles, etc.
The difference between order-based production and stock-based production is mainly manifested in the following two aspects:
1. Order-based production - low degree of product standardization, low production efficiency, long customer order lead time, low inventory level, and high degree of personalization to meet customers.
2. Stock-up production - high degree of product standardization, high production efficiency, short customer order lead time, high inventory level, and difficult to meet customer personalized requirements.
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