Research On The Optimization Of MTS-MTO Hybrid Production Model For K Company

With the aggravation of the market competition,if the enterprises want to improve their competitiveness,they must continuously improve their operational efficiency,and the choice of production mode involving production management,inventory and procurement is particularly important.Only by analyzing the changes of the external environment and selecting the production mode that adapts to the changes,can we effectively reduce the operation cost,improve the operation efficiency and maintain the sustainability of the competitive advantage of the enterprise.This thesis takes K Company's make-to-order(MTO)model as the research object,and determines that a single MTO production model can no longer meet the company's current customer order requirements after a detailed analysis on factors that affect product delivery time including production forecasting,product characteristics,production plans,and operation processes with tools including Fishbone diagram and 5Why,aiming at solving practical problems such as long delivery periods,low on-time delivery rates,and low inventory turnover rates,and concludes that an MTS-MTO hybrid production model should be proposed as the goal of optimization for K Company.In order to implement the MTS-MTO mixed production model,the company's operational performance indicators will be quantitatively and qualitatively analyzed first,then optimization should be carried out based on actual situation.The average moving method is applied to optimize demand forecasting,selecting MTS products according to the characteristics of product sales,and establishing safety inventory and economic production batches are adopted to optimize the production plan of MTS.Prioritizing the production of MTO orders according to the AHP,and to optimize the production operation plan of the workshop,identifying bottlenecks in the production process according to the Theory of Constraints,(TOC)theory and balancing the process time have been carried out by K and its MTO production mode has been adjusted to MTS-MTO hybrid production mode.Finally,the key indicators before and after the optimization of production mode are compared.The results show that: the product delivery cycle is significantly shortened;the production cost is significantly reduced;the production efficiency of the company is greatly improved.As a result,the on-time delivery rate of the company's orders is significantly improved,and the company has obtained the sustainability of the competitive advantage.