The difference between the ETO approach to production and make to order products is that engineering original products to order includes the entire design process.
The representatives of the customer company engage with the manufacturing team throughout the process to ensure that each and every specification is met. Forms of MTO vary, for example, an assembly process starts when demand actually occurs or manufacturing starts with development planning. Engineer to order is a type of manufacturing process in which a product is designed, engineered and finished after an order has been received. When a company has a competitive advantage, it means that it has an edge over its rivals. The Management Dictionary covers over 2000 business concepts from 6 categories.MBA Skool is a Knowledge Resource for Management Students & Professionals.Quizzes test your expertise in business and Skill tests evaluate your management traits In engineering to meet unique customer orders, designs spring from collaboration with the customer, beginning with a need and a concept. The difference between the ETO approach to production and make to order products is that engineering original products to order includes the entire design process. This is a much more creative process and requires a much closer relationship with clients, ultimately leading to a product that is unique. The engineer to order process is used for very complex products or very specialized products.• The entire process has to be carefully planned as the product to be manufactured is complex• High level of customer participation in the entire process• Lot of confusion is generally there between company and the consumers• Several revisions may be required to finalize the engineering specifications• Costs of the entire process are very difficult to be predictedI. Engineers don’t always follow a smooth flow from step to step even in ordinary manufacturing. It has additional steps that require extensive quoting and engineering on both the sales side and the product design side. The existing design is followed, even if the customer requests some customization of dimensions or materials. Develop a consistent and efficient part numbering processIII. Here are the basic ETO workflow steps: … ETO process is used by the companies like Rafale, BEL, BHEL etc when they receive any special order from the defense ministry or any other ministry of any India. So, what does an ETO workflow look like? MTO (Make to Order) is a manufacturing process in which manufacturing starts only after a customer's order is received. Engineer to order is a type of manufacturing process in which a product is designed, engineered and finished after an order has been received. It also requires an accurate change management system throughout the production process, and it requires continuous monitoring and assessment of the cost to make sure that real-world production conditions remain within the quoted cost structure. The existing design is followed, even if the customer requests some customization of dimensions or materials. They may also have to pay a premium for having something wh… But the typical ETO environment usually deals with the design and build of unique custom engineered complex machinery and industrial equipment - one in which there is heavy involvement of the following engineering disciplines; mechanical, electrical, mechatronics, software, manufacturing and systems engineering. The product is engineered to meet the specifications desired by the received order. It is usually the right solution when details on a customer order are not provided and engineering development must be added to product lead time.ETO is a technique that is leveraged to boost sales and improve margins for those companies with customers needing solutions that are tailored to fit their own unique environment. In many ETO environments, the Sales and Engineering teams work directly with the consumer to create the overall design and estimate. A Make to Order Example This could be any product, from enterprise software applications to special aircraft to a pair of jeans. It does however reduce costs and time if one can use previous designs. Engineer to order environments must employ a flexible and adaptive, demand-driven approach to the manufacturing process.
The product is engineered to meet the specifications desired by the received order. Where possible, prior similar products may provide some guidelines as to testing and precision, but the idea of re-designing or modifying an existing design is necessarily a core requirement of the engineer to order concept. ETO model is very common in defense, aerospace and energy industry.This article has been researched & authored by the Browse the definition and meaning of more similar terms. In engineering to meet unique customer orders, designs spring from collabor… Engineers do not know the final specifications, materials, or in software development, even the network or application platform until other primary concepts are ironed out. Most manufacturing design decisions tends to be highly iterative.Given the unique nature of the delivered product, clients may accept certain quality risks as a consequence of meeting delivery dates. Other methods which fall under this type are build to order (which is another term for make to order), assembly to order and engineer to order. As each product is essentially a one of a kind prototype, smaller companies on either the manufacturer or client side may not have the expertise or resources to implement use-cases, user testing, or future quality guidelines. In MTO companies typically have a fixed design and specifications to start with. An ETO workflow is different than Make to Stock (MTS). Create proper bills for each item, subpart, assembly etc. The make to order method belongs to a pull system of manufacturing as it relies on customer orders before starting production.
By adopting a make-to-order strategy, the company will have a competitive advantage. In MTO, quality is often defined as a lack of defects, but must meet minimal levels defined in the specifications.
In Engineer to Order there is no original design.
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