CIMdata PLM Industry Summary Online Archive
9 July 2007
CIMdata News
Ask the Expert: Make-to-Order Integration
CIMdata Director of Research, Ken Amann, in Managing Automation's Ask the Expert column addresses the question: What is your opinion on SAP's MTO/MTS concept? If it is necessary to create integration between an ERP and a PLM system, shall the MTO/MTS concept be reflected on PLM?
Ken's answer:
SAP's MTO (Make to Order) and MTS (Make to Stock) concepts fit within their overall approach to ERP and manufacturing, in which they provide different approaches for different industries and business models. MTO and MTS are two approaches that address different types of models. SAP is integrating MTO and MTS within the overall planning, execution, forecast, and logistics processes as well as providing linkage to the engineering and design functions. This enables companies to be more flexible and adaptable in their overall business. MTO and MTS are primarily ERP functions. While they can be performed within that domain, they are impacted by engineering changes to the products to be made to order and made to stock. The normal integration of PLM with ERP that includes change management should support the MTO/MTS requirements.
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