This is one of the most commonly used classifications. It pertains to factories where parts are assembled to make a product. This is also known as “discrete type”.
This is also one of the most commonly used classifications. It is where the product is produced from the material through a chemical change. Process type is also known as “non-discrete type”.
BY PRODUCT TYPE AND PRODUCTION VOLUME
Mass production of scant kind of products
From a factory’s point of view, this classification is efficient. This is mainly because it is easier to mass produce than to create different products.
Small volume production of diversified products
Recent trends show that mass production of scant products is slowly dropping away. This is why small volume production of varied products came to be. This is developed to meet the different needs of consumers.
BY STOCK POINT
As discussed in the previous paragraph, consumer needs vary. So, in order to satisfy the growing needs of the populace, MTO was conceived. MTO is generally a business production strategy that allows customers to buy products that are customized to meet their specifications.
This is the traditional production strategy. It relies on demand forecasts that determine how much stock should be produced.