When the Make to Order business scenario is characterized by highly variable demand and inflexible production capacity, resources idling during certain times and large number of orders getting backlogged at certain other times becomes a regularly recurring phenomenon. Order cancellations and delays in demand fulfillment arising out of these backlogs, result in revenue leaks and bottom-line eroding penalties. To address some of these challenges, some manufacturers adopt a strategy of producing the standard products or low configuration choice offerings at discounted prices to generate higher demand during the lean periods and offer highly customizable product offerings during the high demand periods.
These hybrid “MTS / MTO” and Delayed Differentiation manufacturing environments require processes & capabilities in addition to the ones available in ERP. It is in this context that the need arises for Real Value IT’s ARTHA Ops - Manufacturing. ARTHA Ops - Manufacturing is a combination of optimization models, heuristics, specially designed and operationally integrated processes that work in unison with revenue realization potential as a guiding factor while still being able to minimize costs to improve the bottom line.
Using ARTHA Ops - Manufacturing, the Order Management, Procurement, Production and Fulfillment operations teams can work in a concerted fashion toward the single goal of maximizing revenue realization for the operational period.