TABLE OF CONTENTS First, have a definite, clear practical ideal; a goal, an objective. Second, have the necessary means to achieve your ends; wisdom, money, materials, and methods. Third, adjust all your means to that end.
Aristotle
The motor vehicle industry, once the trailblazer in process change, is still on the sidelines, shaking its head at the infeasibility of system-wide build-to-order. Meanwhile, other industries are forging ahead. In fact, making demand visible to all key parts of the value grid is no longer a new idea. The grocery sector s Efficient Consumer Response (ECR) initiative has been very successful at linking customer sales to rest of the grid through electronic point-of-sale (EPOS) data initially to distribution centers and from there to suppliers. The outcome has been faster stock replenishment and faster stock turnover. Other industries have implemented variants of build-to-order with considerable success. Their experiences prove that system-wide build-to-order is viable, and that motor vehicle companies can join others who have responded to customer demand, eliminated artificial demand distortion, restored supplier good will, and abolished profit-eroding incentives.
Some companies in other industries have managed to avoid stockpiling finished products and have been rewarded with superb performance achievements. They have put in place process, product, and volume flexibility, which has allowed them to rapidly provide customized products.
Dell Computer has become famous for its ability to transfer a customer s order to the factory within 24 hours of receiving it and to ship the item ordered a few days...
