When we’re talking about the three types of manufacturing we’re ultimately referring to, make to stock manufacturing (MTS), make to order manufacturing (MTO), and make to assemble manufacturing (MTA). These three types of manufacturing are rather common among manufacturers. 

As you begin moving out of your product development phase and onto the manufacturing lines, it is best to grasp a better understanding of the manufacturing process and the three types of manufacturing.

What’s the difference between these three types of manufacturing?

Make to order manufacturing

In some ways, these types of manufacturing are quite straightforward. They are just adaptations of different manufacturing management models. Make to order (MTO) is where a manufacturing company will make, or ‘manufacturer’, a specific product according to the customer’s needs.

Apple is, in some ways, a make to order manufacturer, although their manufacturing is outsourced, they can customize their Imac devices according to a customer’s specifications. This is an example of make to order model.

Make to stock manufacturing

In contrast, make to stock (MTS) is a different manufacturing type that relies heavily on the customer’s future demand. For example, a made to stock management level is, in some ways, a prediction of the future market, which, as you can imagine, is a rather risky manufacturing style. 

In some cases, this can pay off. If the manufacturer is able to forecast the future market accurately, then when future demand catches up, they’ll be prepared to begin selling their stock. However, if the demand never picks up, this type of manufacturing can ultimately leave a factory ‘dead in the water’ with unmoveable stock.

Make to assemble manufacturing

Make to assemble (MTA) this manufacturing type is in part similar to make to stock’s (MTS’s), as a manufacturing company will compile numerous components ready to assemble them into customized products for consumers. 

Concluding the three types of manufacturing

As you can see there are many types of manufacturing. Although, for a manufacturer, deciding which path is a crucial element to their future business and success. In some cases, manufacturers choose numerous types of manufacturing to get the best advantage possible. 

We at SVV (Shenzhen Valley Ventures) is very much a make to order (MTO) manufacturer. Our manufacturing is designed to support the customization and development of complex B2B devices for startup companies and corporate innovation teams. If interested to learn more get in touch with our team.