METHODOLOGY 31 RESULT AND DISCUSSION 49

vi Content Page No 2.1.1 Make-to-order MTO 13 2.1.2 Make-to-stock MTS 14 2.2 Classification of Make-to-order MTO and Make-to-stock MTS 14 2.2.1 Decision Making Tools 17 2.2.2 Step for Decision Making of MTO and MTS 18 2.2.3 Factors to consider When Evaluating the Prospect of MTO 22 2.2.4 The differences of MTO and MTS in terms of Customer Relationship 22 2.3 Problems in MTO and MTS 22 2.4 Main operation Issues in MTO and MTS 26 2.4.1 Capacity Planning 26 2.4.2 Inventory Planning 28 2.4.3 Demand Forecasting 30 2.5 Summary 30

CHAPTER 3: METHODOLOGY 31

3.0 Preliminary 31 3.1 Plan and activities 31 3.2 Methodology 34 3.2.1 Stage 1: Preliminary study 34 3.2.2 Stage 2: Identifying the effect of MTO and MTS in product quality 37 3.2.3 Stage 3: Determination of production stability index 39 3.2.4 Stage 4: Identifying the factors contribute to the increments of inventory level 41 3.3 Case study 44 3.4 Sample size and limitation 44 3.5 Data collection 45 3.6 Data analysis 47 3.7 Summary 48 vii Content Page No

CHAPTER 4: RESULT AND DISCUSSION 49

4.0 Preliminary 49 4.1 Characteristics of MTO and MTS 49 4.1.1 Result 50 4.1.2 Discussion 54 4.2 Effect of MTO and MTS to product quality 56 4.2.1 Result 57 4.2.2 Discussion 63 4.3 Production Stability Index 65 4.3.1 Result 66 4.3.2 Discussion 68 4.4 Factor contribute to the increments of the inventory level 71 4.4.1 Result 72 4.4.1 Suppliers 72 4.4.2 Customers 73 4.4.3 Order placement 73 4.4.2 Discussion 74 4.5 Summary 76

CHAPTER 5: CONCLUSION AND RECOMMENDATION 77