Understanding ATO and PTO Models

In Oracle there are 3 different type of Models which can be created

1. ATO Models - (Assemble to Order)
2. PTO Models - (Pick to Order)
3. Hybrid Models - These are the PTO Models which have ATO models as Child

Before you start creating any of the above Models following criteria must be understood

1. If the finished product is shipped as an Assembled unit then we can use ATO Model
2. If the finishd product is shipped as disassembled unit (as loose parts) then we can use PTO Model
3. If the finshed product is shipped as disassembled unit (as loose parts) and has Assemly items which needs to be configured then we can use Hybrid Models (PTO Model having ATO Model as Child)

Few things which needs to be considered while Model designing

ATO Models can have ATO Option Class as well as ATO Models as Child.
PTO Models can have PTO Option Class as well as PTO Models and ATO Models as Child.
ATO Option Class can have ATO Option Class as well as ATO Models as Child.
PTO Option Class can have PTO Option Class as well as PTO Models and ATO models as Child.

ATO Models:

Configuration items can be created.
Standard Bill of Material can be created for Configuration items.
This BOM is consisting of the selected items in Oracle Configurator from the ATO Model.
This BOM is a single level BOM showing ATO Option Class and the item(s) selected in the ATO Option Class.
Job Order (Work Order) can be generated for the Configuration items.
Only the Top Configuration item will be eligible for Shipping.

The are standard products and are often configured by customers.
Subassemblies are manufactured prior to receiving the order and when the order is received ,the subassemblies are assembled to make the finished products
For Example : Automobiles , Laptops

This is a pull based manufacturing system where the parts are kept in stock but not manufactured until the actual order is created.  Based on the order, the work order gets created (based on a predefined BOM) and fulfilled.

PTO Models:

No Configuraion item can be created.
All the selected items in PTO Option Classes or in the PTO Model are shipping eligible.
If an ATO model is a child for the PTO Model then in that case only the Configuration item created for that ATO Model will be shipping eligible.

Models can be deisgned in various ways depending upon the Business Product Structure/Manufacturing Flow for the Product etc.

A Variety of shippable components are stocked.

Customers order kits or collection of these parts under a single item number.

Kits can be predefined or configured by the customer during the order entry process.

There is no additional value added after the customer order.

For Example : Computer System (CPU , Monitor , and Printer)

Oracle Master Scheduling/MRP and Supply Chain Planning does not support planning For PTO

Pick to Order (PTO) items have the Pick Component attribute set to Yes. 

Pick-to-order bills cannot have fractional component quantities if Oracle Order Management is installed. 

You cannot create routings for planning or pick-to-order items. 

This is a push based manufacturing system where the goods are manufactured based on forecasted demand. The goods are picked as and when the orders come in and fulfilled against the order.

KIT

A kit is similar to a pick–to–order model because it has shippable components, but it has no available options to choose like PTO model
In Oracle Inventory module, kit item type and kit item template are pre-defined by Oracle
An example of a product kit is a motor car maintenance kit which consists spanners, jack etc.
The word ‘Kitting’ is used when you make a kit after picking it's components from subinventory/ies and pack it. 


Configure-To-Order (CTO):

It is a method of manufacturing which allows you, or your customer, to select a "base product" and configure all the variable parameters associated with that product. 

It allows you, or your customer, to choose a base product at the very moment of ordering and then configure all the variable parameters (features) associated with that product from defined/available options. Based on these selections, configurable items on each quote or order typically generates the "unique product" configuration and manufacturing routing and/or bill of materials based on various features and options. Vendor/order receiving company subsequently builds that configuration dynamically upon receipt of the order.