M4E #61: Production strategies
Let's talk about industrial strategies again. We last discussed this topic in M4E #10, it's been quite a while! And what better way than to revisit this topic with the help of a video from ETH Zurich in which they talk about the 4 main production strategies. Enjoy it!
Time for Insights
To recap: The Customer Order Decoupling Point (CODP) is a crucial concept in supply chain management that refers to the point in the production process where a product's features and characteristics are locked in per a customer's specific order. It is the point beyond which the product becomes specific to a particular customer's order and cannot be changed without incurring significant cost or delay.
Professor Torbjörn speaks about the importance of good forecasting when having a MTO strategy. Common everyday products typically use this strategy but problems arise when unexpected behaviours take place. On a funny note, remember the problems the whole world had with toiler paper at the beginning of the COVID pandemics.
As a final exercise, take some time to think about more companies and what are their production strategies, or what strategies they mix.