Business Models
Make-to-Stock - finished items are stocked on retail store shelves waiting for customers to buy them. Walmart.
Ship-to-Order - finished items are stored in a distribution center and are shipped when order is received. Fige Boats.
Assemble-to-Order - the item has already been designed and components have already been fabricated. Final assembly is performed to a sales order for a specific combination of components. Dell.
Make-to-Order - the item has already been designed. When your company receives a firm customer order, components are built and assembled. Burger King.
Engineer-to-Order - the item is engineered from a "clean sheet of paper" to meet the customer's specifications. ACU Wellness Center.
Product Realization Cycle
Step 1 Idea Generation - Understand customer requirements, available technologies,government regulations and other considerations that would influence a productdesign.
Step 2 Design the Business - Establish strategy and business plan.
Step 3 Obtain Funding and Design Product and Process - Understand customer requirements, engineer design, develop process, and detailed make/buy decisions.
Step 4 Once Product Design Complete, Implement the Process - Hire and train people, establish information systems, establish facilities, buy and install equipment, detailed work instructions, build special tools and test equipment, and write policy and procedures.
Step 5 Product is ready to be Built
Step 6 Operate Process - Production scheduling and inventory control, purchase orders issued and items received, suppliers paid, customers invoiced and payments received, time keeping and payroll, make parts and assemble, ship to customers, resources maintained, and quality monitored.
Step 7 Products are Ready to be Used
Step 8 Support the Product - Installation, routine maintenance, repairs, spare parts, modifications, technical data, training, and problem diagnosis.
Customer Service
