The Make-to-Order (MTO) approach is designed for businesses that manufacture products only after receiving a customer order, without keeping finished goods in stock. This workflow ensures efficient production planning, inventory management, and timely order fulfillment.
Note: If you keep safety stock levels for all products and use a Make-to-Stock approach, take a look at the Make-to-Stock workflow. If you use a mix of Make-to-Stock and Make-to-Order, refer to this article.
Step 1: Create a sales order (SO)
Initiate an SO: Begin by creating an SO manually in the Sell screen or importing it from integrated ecommerce platforms like Shopify or WooCommerce.
Monitor availability:
Sales items availability: Typically displays Not available since products are made to order.
Ingredients Availability: Indicates the status of required materials as In stock, Expected, or Not available.
Identify missing materials: Click on the Not available status under the Ingredients column to view detailed information about missing materials.
Step 2: Schedule production
In the Sell screen, under the Production column, click + Make… and select + Make to order.
This action generates an MO linked to the SO, updating the SO's Production status to Not started and Sales items availability to Expected.
MO identification: The MO number adopts the SO number with an added suffix (e.g., SO-670 becomes SO-670/1).
Manage production schedule:
Access the Schedule tab in the Make screen to view and adjust MO priorities using drag-and-drop functionality.
Note: Changing the priority of an SO automatically updates the linked MO's priority, and vice versa.
Read more about using the Schedule.
Step 3: Track material requirements
Establish product recipes/BOMs: Ensure each product has an associated Bill of Materials to accurately track required ingredients.
Assess ingredient availability:
In the Make screen, select an MO to view its ingredient list and availability status.
Alternatively, in the Sell screen, open an SO and click on the Not available status under Ingredients to identify missing materials.
Implement safety stock levels: Maintain optimal inventory by setting safety stock levels for materials, ensuring readiness for production demands.
Step 4: Purchase missing materials
From an MO: Click + Buy next to a missing ingredient.
From the Sell screen: Open an SO, click on Not available under Ingredients, and select + Buy.
From the Stock screen: Navigate to the Materials table and click + Buy for the required item.
Review calculated stock: In the Stock screen, utilize the Calculated stock column to determine the necessary purchase quantities, considering current stock, commitments, and safety stock levels.
Manage POs: All created POs appear in the Buy screen, where you can monitor their delivery status.
Step 5: Receive materials
Update delivery status:
Upon receiving materials, mark the PO as Receive all or Receive some in the Buy screen.
This action updates material availability to In stock, allowing production to proceed.
Step 6: Manufacture the product
Commence production:
In the Make screen's Schedule tab, begin with the top-priority MO.
Update the MO's Production status to Work in progress and subsequently to Done upon completion.
Detailed task management:
For granular control, define Production operations for each product.
Access the Tasks tab in the Make screen to assign and monitor specific tasks.
Operators can use the Shop Floor App to view tasks, report consumed ingredients, and log manufactured products in real time.
Learn more about managing the production process, production operation statuses, and managing tasks for Resources.
Step 7: Deliver the product
Fulfill the SO:
Once production is complete, navigate to the Sell screen.
Update the SO's Delivery status to Delivered to reflect order fulfillment.
Partial Deliveries:
If only some items are ready, Katana allows for partial deliveries.
Deliver available items while continuing production on the remaining ones.
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