Assemble To Order (ATO) is a flexible manufacturing model in which companies assemble finished products only after receiving specific customer orders. In this process, pre-manufactured standard components or modules are used, which are combined according to the customer's specifications to deliver a customized final product. ATO is particularly prevalent in industries where high levels of product customization are required, such as the automotive, machinery, and high-tech sectors.
Customer-Specific Customization: ATO enables companies to fulfill customer needs by offering a variety of configuration options without having to start production from scratch.
Reduced Inventory Costs: Since only standard components are pre-manufactured and stored, companies don't need to keep fully assembled products in stock, leading to significantly lower inventory costs.
Faster Delivery Times: ATO accelerates the production process as individual components are already produced and only need to be assembled. This allows companies to respond to orders more quickly and reduce lead times.
Efficient Production: By using a standardized pool of components, production remains efficient while maintaining high adaptability. This leads to optimized resource utilization and reduced waste.
ATO is widely used in sectors where there is high demand for customized solutions. The automotive industry is a prime example, as vehicles can be configured to customers' preferences with specific engines, transmissions, and features. The electronics and high-tech sectors also utilize ATO, such as assembling computers or devices with varying hardware options.
In an ATO system, optimizing production metrics such as Overall Equipment Effectiveness (OEE) plays a critical role. With a well-coordinated use of standard components, machine availability and performance can be maximized. ATO also enables more efficient use of resources, reducing unnecessary steps in production, which positively impacts both quality and efficiency.