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Build to order
Production approach / From Wikipedia, the free encyclopedia
Build to Order (BTO: sometimes referred to as Make to Order or Made to Order (MTO)) is a production approach where products are not built until a confirmed order for products is received. Thus, the end consumer determines the time and number of produced products.[1] The ordered product is customized, meeting the design requirements of an individual, organization or business.[2] Such production orders can be generated manually, or through inventory/production management programs.[1] BTO is the oldest style of order fulfillment and is the most appropriate approach used for highly customized or low volume products. Industries with expensive inventory use this production approach.[1] Moreover, "Made to order" products are common in the food service industry, such as at restaurants.
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BTO can be considered a Just in Time (JIT) production system, as components or products are only delivered just in time when demanded, in order to reduce wasted time and increase efficiency.[1]