ATO、MTS、MTO、ETO、CTO explained in simple terms for everyone

ato、mts、mto、eto、cto in manufacturing

Definitions

You will see ato、mts、mto、eto、cto in many factories. Each way helps you know when to make things. These methods also help you keep track of products and make your supply chain better. Here is a simple table that shows the main differences:

Model	Description	Customization Level	Lead Time
MTS	You make products based on what you think people will buy. You store them until someone orders. You can send them fast.	Low	Short
MTO	You only start making things after someone orders. This way gives more choices but takes more time.	Medium	Longer
ATO	You put together products from parts you already have after someone orders. This way gives some choices and quick delivery.	Medium	Faster than MTO
CTO	Customers pick features. You use regular parts to make a special product.	High	Medium
ETO	You design and build something new for each customer. This way needs teamwork and takes the most time.	Very High	Longest

You can find these ways in lots of businesses. The table below shows where you might see each one:

Manufacturing Strategy	Common Industries
MTS	Fast Moving Consumer Goods, Clothes
MTO	Planes, Fancy Cars, Big Machines
ATO	Regular Products with Choices
CTO	Products you can change
ETO	Engineering Jobs, Special Equipment

You can use cloud systems to watch your products and make your supply chain better. Cloud tools let you see your products right away and help you change your process fast. This makes your business stronger when people want different things.

Acronyms

You will see these short names a lot in factories. Here is what each one means:

Acronym	Full Form
ATO	Assemble to Order
MTO	Make to Order
ETO	Engineer to Order
MTS	Make to Stock
CTO	Configure to Order

You can use these ways to match what you make with what people want. If you want less stuff in storage, you might use make-to-order. If you want to send things fast, you might use make-to-stock. Good product tracking and cloud tools help you pick the best way for your business.

ATO Manufacturing

What is ATO

When you use ATO, you build products after someone orders. You do not make everything from the start. You keep parts and smaller pieces ready before orders come in. This way, you can help customers fast and keep your inventory small. ATO is between make-to-stock and make-to-order. You get some speed from make-to-stock. You also get some choices from make-to-order. Many companies use ATO to make their supply chain better and stronger when things change.

Here is how ATO works:

You make or buy basic parts before anyone orders.
Customers order and pick what features they want.
You put together the final product using your parts.
You send the finished product to the customer quickly.

This method helps you control inventory and keeps your supply chain strong, even when customers want new things fast.

ATO Example

You can see ATO in computers. For example, Dell lets you pick the processor, memory, and screen size for your computer. Dell keeps all the parts ready. When you order, Dell builds your computer with your choices and ships it. Here are some companies that use ATO:

Company	Description
Dell	Customers pick parts like processor, screen size, and memory for their PCs.
Oliver Charles	Uses made-to-order for clothes to keep inventory accurate.
Fringe and Free	Builds handmade home items after orders, so they buy materials in bulk.

This way helps companies avoid extra stock and serve customers fast.

ATO Features

ATO is different from other ways because of its special features. You do not keep old parts that no one wants. You sell more products because you finish them only when someone orders. Customers can pick some things they want, and you deliver fast since most work is done early.

Feature	Description
Avoids dead stock	You find and swap old parts, so you waste less.
Higher inventory turnover	You finish goods per order, so you sell more and pay less to store them.
Customization capability	Customers pick parts or ask for changes, so you make special products.
Quick delivery	Most work is done before orders, so you ship fast.

ATO helps you be quick, flexible, and manage inventory well. You can use cloud tools to watch your inventory and production as it happens. This makes your business stronger and ready for changes. The ato、mts、mto、eto、cto ways help you pick the best plan for your customers and supply chain.

MTS Manufacturing

What is MTS

With make to stock, you make goods before people order. You guess how much to make by looking at past sales. This helps you keep items ready for fast shipping. Make-to-stock is common in places like food, clothes, and electronics. These businesses need good supply chain skills to keep the right amount of products. They do not want too much or too little. Guessing right is very important. If you guess wrong, you might have too many or not enough products. Cloud tools help you watch your stock and change plans fast.

Tip: Make to stock works best when you know what people want and when they want it. Cloud systems help you see trends and manage your stock right away.

Here is a table that shows the types of stock you handle:

Inventory Type	Description
Raw Materials	Basic stuff used to make products.
Work In Progress	Items being made but not finished yet.
Finished Goods	Products that are done and ready to sell.

MTS Example

Car makers use make to stock. They build cars before people buy them. The cars wait in lots until someone wants one. This way, people get cars fast. Big stores also use this for things like snacks and cleaning supplies. They use supply chain tools and cloud data to keep shelves full and avoid empty spots.

MTS Features

MTS uses a push system. You make things because you think people will buy them. This helps you make lots of products at once. You can save money by making big batches. Customers do not have to wait long because items are ready. But you must be careful not to make too much. If you do, you pay more to store extra goods. If you make too little, you might run out.

Key features are:

Make lots of goods that sell fast
Manage stock by guessing what people want
Use cloud tools to watch stock in real time
Strong supply chain skills help you stay ready
Fast delivery to customers
You might have too much stock if you guess wrong

Make to stock is different from make to order. Make-to-order waits for people to ask before making things. Make-to-stock gets products ready ahead of time. Both ways are part of ato、mts、mto、eto、cto. These help you build a strong business.

MTO Manufacturing

What is MTO

Make-to-order means you build things after someone orders. You do not keep finished products in storage. You only keep parts and materials. You start making the product when you get an order. This way, you can give customers more choices. You can use cloud tools to watch orders and inventory. Make-to-order is good when people want special features. You see this method in ato、mts、mto、eto、cto. It helps your business handle changes and manage the supply chain better.

MTO Example

Many businesses use make-to-order to help customers. Here are some examples: In cars, you pick the color and engine. The company builds your car after you choose. In healthcare, companies make medical devices for each patient. They wait for your order before making it. For furniture, you pick the size and style. The company makes your item after you order. For computers, you choose the parts you want. The company builds it just for you. In jewelry and fashion, you design a ring or suit. The maker creates it after you order. In industry, companies build systems for each client. Make-to-order is popular because you get what you want.

MTO Features

MTO is different from make-to-stock and assemble-to-order. You focus on giving choices and being flexible. You keep parts and materials, not finished goods. You need good supply chain skills to plan for changes. Cloud systems help you plan and check costs. You try to be fast and still offer choices. You use tools like CAD and machines to work quicker. You must guess costs well because every order is new. You offer options but still want to make money. It takes longer because you start after getting an order. This way is good if you want to sell special items and keep less stock.

Feature	MTO (Make to Order)	MTS (Make to Stock)	ATO (Assemble to Order)
Inventory Management	Focus on raw materials and components	Finished goods are stocked	Components are stocked for assembly
Production Process	Customization based on orders	Standardized production	Assembly of pre-manufactured parts
Lead Times	Longer due to customization	Short due to pre-made stock	Moderate, depending on assembly time
Flexibility Requirements	High, to accommodate custom orders	Low, as products are standardized	Moderate, as it allows for some customization

You can use make-to-order if you want to sell special products and stay flexible. This way helps you stand out and work with customers. Engineer to order is like this, but MTO is more about building than designing from the start.

ETO Manufacturing

What is ETO

Engineer to Order (ETO) is when you make a new product for each customer. You do not use a regular design. You start with what the customer wants and make something new every time. This way is best when every project is different. ETO is used when people need things that normal products cannot do. You must be good at handling supplies because each order is special. You also need to manage your materials well. You only buy what you need after you know the details. ETO jobs take more time because you have to design, test, and build each item. Cloud tools help you watch each step and keep everyone in the loop.

ETO Example

ETO is used in many industries. For example, fire truck companies build trucks to fit what each fire department needs. A city may want a big truck with more water tanks. A small town may need a smaller truck. Big buildings use ETO for HVAC systems. Each building is different, so you must design a system that fits just right. These examples show ETO is about making custom things, not making lots of the same thing.

ETO Features

ETO is special because it lets you make very custom products. The process has many steps and is not simple. Here are some main features:

You need to plan projects carefully and work as a team.
It takes longer because you design and build from the start.
Costs are higher since you need special parts and skilled people.
You must talk clearly with customers so they know what to expect.
Design and making the product must work closely together to stop delays.
The supply chain is tricky because each job needs different parts.
You check quality often to make sure the product is right.
You cannot make lots of the same thing because every order is new.
You must watch for problems, since mistakes can waste time and money.

Cloud systems help you see your materials, manage supplies, and stay strong. You can see each part of the job as it happens, so you fix problems fast. ETO lets you give customers exactly what they want, but you must stay ready and organized.

CTO Manufacturing

What is CTO

Configure to Order lets customers pick what they want. You use regular parts to build each product. This way, you can give choices and still deliver fast. You do not need to keep lots of finished products. You only keep the main parts in stock. You put together products after people order. CTO works well because it gives you more options. It also helps you control your inventory. Cloud tools help you watch orders and parts. This makes your supply chain work better. You can change quickly when customers want new things.

CTO Example

CTO is used in many industries. For example, forklift makers let you pick features. You can choose engine size or cab style. You might add special attachments. The company keeps main parts ready. When you order, they build your product with your choices. Then they send it to you. Here is a table with examples:

Product Type	Customization Options
Forklifts	Load capacity, lift height, power source, attachments
Tractors	Engine horsepower, fuel type, cab design, attachments
Industrial Equipment	Production capacity, materials, finishes, automation
Construction Equipment	Engine tier, power output, attachment options, cabin

This way, you get what you want without waiting too long.

CTO Features

CTO has many good points for you and the company. You get a product that fits your needs. The company does not keep too much extra stock. Here are some main features:

You pick the features you want, so you are happy.
The company only stocks main parts, so costs are lower.
Delivery is faster because parts are ready before you order.
Cloud systems help track parts and orders easily.
The company does not make too many finished products, so there is less waste.
You get better service because the process is quick.

Tip: CTO helps companies offer special products and fast service.

Here is a table that shows how CTO helps with speed and choices:

Aspect	Explanation
Reduced Finished Goods Inventory	Companies do not need to store lots of finished products.
Strategic Stocking of Components	Main parts are always ready, so orders are filled faster.
Flexible Production Planning	Companies only make what you order, so there is less waste.
Customer Personalization	You pick features, so the product fits you better.
Faster Fulfillment	Orders are shipped quickly because most work is done early.

CTO helps factories work smarter and gives you what you want. Cloud tools and good inventory tracking keep everything running well.

Comparing ato、mts、mto、eto、cto manufacturing methods

Differences

These manufacturing methods are not the same. Each one helps you handle orders and inventory in its own way. They also change how you manage your supply chain. Check the table below to see how they compare:

Manufacturing Method	Description	Key Characteristics	Delivery Time
Make-to-Stock (MTS)	Products are made before orders come in.	Fast delivery, high inventory, standard products.	Fastest
Make-to-Order (MTO)	You start production after getting an order.	Customization, longer process, less inventory.	Slower
Assemble-to-Order (ATO)	You keep parts ready and assemble after an order.	Medium customization, balanced inventory, quick assembly.	Slower than MTS
Configure-to-Order (CTO)	You build products with options after an order.	Customer picks features, uses standard parts, flexible.	Slower than MTS
Engineer-to-Order (ETO)	You design and build from scratch for each order.	High customization, complex process, unique products.	Slowest

You can also look at lead times and how much you can change the product:

Strategy	Lead Time	Customization Level
MTS	Before orders	Low
MTO	After orders	Medium
ATO	After orders	Medium
CTO	After orders	Medium
ETO	After orders	High

Note: If you want your order fast, make-to-stock is best. If you want more choices, engineer-to-order or configure-to-order gives you more options, but you will wait longer.

When to Use Each

Pick a method that fits your product and market. Think about how you manage your supply chain too. Here are some tips to help you choose:

Use make-to-stock if you sell the same products and need to ship fast. This is good for things like snacks or cleaning supplies.
Choose make-to-order when customers want special features. This works for custom cars or medical devices. You keep less inventory and can change things more.
Pick assemble-to-order if you want both speed and some choices. This helps you deliver quickly and still let people pick options. Dell does this for computers.
Select configure-to-order if you want customers to pick from a list of features. This uses regular parts and helps you control your inventory.
Go with engineer-to-order for special projects. This is best for unique equipment or big building jobs. You design and build each product from the start.

Cloud tools help you watch your inventory and make your supply chain stronger. These tools let you see what is happening right now and help you change plans fast. Toyota uses make-to-stock with lean production. John Deere uses make-to-order for custom machines. Dell uses assemble-to-order to deliver fast and keep customers happy.

Tip: The right method helps you keep your business strong, even when things change in the market.

You should think about your products and goals before picking a manufacturing method. Each way has its own good points. The table below shows which one might work for you:

Method	Advantages	Disadvantages
MTS	Ships fast, easy to plan	Extra stock, not many choices
ATO	Lets you pick options, uses same parts	Slower than MTS, needs planning
MTO	Made just for you, less extra stock	Takes more time, you must wait
ETO	One-of-a-kind, lots of choices	Slowest, hard to do

If you pick the right way for your goals, your business can handle problems and do well.

FAQ

What is the main difference between MTS and MTO?

You make products before orders with MTS. You wait for orders before making products with MTO. MTS gives fast delivery. MTO gives more choices. You pick the best method for your business needs.

Can you use more than one manufacturing method in a company?

Yes, you can use more than one method. Many companies mix methods to meet different customer needs. For example, you might use MTS for standard items and MTO for special orders.

How does project management help with ETO manufacturing?

You use project management to plan, track, and finish ETO jobs. Each order is unique. Good planning helps you control costs, manage time, and keep customers happy.

Which method is best for custom products?

You should use ETO or CTO for custom products. ETO lets you design from scratch. CTO lets you pick features from standard parts. Both give you many options.

About Hunan Puka

Established in 2016 and based in Hunan, China, with a liaison point in Berlin, we are a Tier 2 supplier for the automobile industry. We specialize in the production of customized aluminum die-casting parts designed for machines with a closing force ranging from 280 to 1250 tons, with subsequent manufacturing process CNC machining and surface treatment. Our commitment to quality is reflected in our accredited quality management system, certified by ISO9001:2015 and IATF16949:2016 standards.