The manufacturing challengeĪs the commercial vehicle market has become more volatile and unpredictable in recent years, Ashok Leyland maintains a competitive edge through continual improvement to the company’s business, design, and manufacturing approaches. One of these changes is a switch from a traditional static product structure to a modular product structure, which helps satisfy customer desire for more variety and configuration options on its vehicles.
To accommodate the modular product structure, Ashok Leyland is transitioning to a “match-to-order” (mTO) business process, which is a hybrid of conventional make to order (MTO) and make to stock (MTS) approaches. In the mTO production planning process, the plan is first created based on orders in the sales funnel. New orders are checked against model and stock availability, and they are added to the plan with a firm commitment date. A major requirement of the mTO process is to generate reliable delivery dates based on constraints, which helps to build customer confidence.
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The mTO approach is not well suited to Ashok Leyland’s existing planning process, which relies on manual entry and manipulation of basic spreadsheets. The process becomes more difficult and time-consuming as the number of vehicle variants increases, and it imposes high lead times to respond to demand changes. “As the orders are going to be more dynamic,” explains M.