Manufacturing Production

What is 'Manufacturing Production'

Manufacturing production is the creation and assembly of components and finished products for sale. Three common types of manufacturing production are make-to-stock (MTS), make-to-order (MTO) and make-to-assemble (MTA).

BREAKING DOWN 'Manufacturing Production'

The MTS strategy is based on demand forecasts, so it makes the most sense when demand can be predicted with reasonable accuracy. Companies can lose money with this strategy if they manufacture too much or too little.





MTO allows customers to order products built to their specifications. Companies alleviate inventory problems with MTO, but customer wait time is usually longer.





MTA is a hybrid of the two: companies stock basic parts based on demand predictions, but do not assemble them until customers place their orders and can offer customization.



RELATED TERMS
  1. Make To Assemble - MTA

    A manufacturing production strategy where a company stocks the ...
  2. Make To Order - MTO

    A business production strategy that typically allows consumers ...
  3. Investment Strategy

    An investor's plan of attack to guide their investment decisions ...
  4. Make To Stock - MTS

    A traditional production strategy used by businesses to match ...
  5. Chartered Market Technician - CMT

    A professional designation given by the Market Technicians Association ...
  6. Assemble To Order - ATO

    A business production strategy where products ordered by customers ...
Related Articles
  1. Markets

    Vital Link: Manufacturing And Economic Recovery

    Manufacturing output is one of the clearest signs that an economy is recovering from a recession.
  2. Trading

    Analyzing M&T Bank Corporation's Return on Equity (MTB)

    Discover M&T Bank Corporation's present financial standing along with an analysis of past and present return on equity (ROE) and comparisons with top competitors.
  3. Markets

    Global Manufacturing: Exploring Revenue Trends and Fundamentals

    Learn about the significant global trends influencing the manufacturing sector, and the effect these trends are having on both emerging and developed countries.
  4. Investing

    M&T Bank Q2 Earnings Coming up: What to Expect?

    To what extent can the management control expenses? That's one major question analysts will have on Wednesday.
  5. Markets

    What It Takes To Be "Made In The USA"

    Discover the rules and standards behind the "Made in the USA" label.
  6. Entrepreneurship & Small Business

    Understanding Marketing

    Marketing includes all of the activities of a company associated with buying and selling a product or service.
  7. Markets

    Why a Strong U.S. Manufacturing Industry Matters (UTX)

    Consider manufacturing’s contributions to employment and GDP growth by engaging other industries, both upstream and downstream, from the manufacturing process.
  8. Markets

    Is a U.S. Industrial Recession on the Horizon in 2016?

    Find out why the industrial economy may be teetering on an industrial recession and what could prevent it from going over the cliff.
  9. Financial Advisor

    What's Involved in Customer Service?

    Customer service is the part of a business tasked with enhancing customer satisfaction.
  10. Markets

    Explaining the Value Chain

    A model of how businesses receive raw materials as input, add value to the raw materials, and sell finished products to customers.
RELATED FAQS
  1. What are some ways a company can expand its product line?

    Understand what a product line is and why it's important. Learn about specific ways in which a company can expand its product ... Read Answer >>
  2. How does specialization help companies achieve economies of scale?

    Learn the definition of economies of scale, why it is important and how specialization during production can lead to economies ... Read Answer >>
  3. What is the difference between work in progress (WIP) and finished goods in accounting?

    Learn about the key features and differences between work in progress (WIP) and finished goods in terms of financial accounting ... Read Answer >>
  4. How can small businesses manufacture demand?

    Create demand for a small business product or service by focusing on the brand and market. Continue to learn offer excellent ... Read Answer >>
  5. How does a customer base dictate goodwill?

    Find out how a customer base dictates the value of the goodwill by providing a ready market for its products and spreading ... Read Answer >>
  6. How can I calculate prime costs?

    Learn about the prime cost formula and how to determine which production expenses are included in the calculation of the ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center