Adaptive Functions

last edited by: Pang DX on Dec 2, 2018 3:34 AM login/register to edit this page


Adaptive functions typically are internal functions with the robust and adaptive capabilities which enable an organization to adjust to variations and fluctuations in the volatile external environment effectively.

The functions include Market Research, Research & Development (R&D), Product Design, and Manufacturing which collaborate and allow an organization to learn and adapt to its external environment, thus strengthening its core competencies.

By adopting Engineering-to-order (ETO) customization, the products are designed and produced from the start of the manufacturing process to adapt to unique variations required by customers. For this to be effective, the product's market demand needs to be stable with relatively small quantities, because customization is not viable once manufacturing starts and cancellations are costly.

By adopting Assemble-to-order (ATO) customization, the products are relatively generic and customized only at the very end of the manufacturing process to adapt to fluctuations of customer demands. Manufacturing of many automobile products is not determined until the very last stage, based on dealer's or customer's customized orders, which often fluctuate according to market swinging demands.


last edited by: Pang DX on Dec 2, 2018 3:34 AM login/register to edit this page


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