Engineer-to-order

Nature of the business in terms of customer orders This cheuacterization includes make-to-stock, make-to-order, assemble-to-order, and engineer-to-order. It has a great deal to do with what the detailed business operations ace and how operational and tactical planning is done. Qeariy this categorization has a tremendous influence on the ERP requirements emd on the behavior of the enterprise in its supply chain. More than any other, this characterization determines the nature of the delivery activities and the dependence on supplier relationships. 

Engineer-to-order describes an approach in which the details of the manufacturing process for the product, and often the product itself, must be defined specifically for a particular customer order and only after receipt of that order. It is important for other business reasons to distinguish contract engineering, in which the customer defines the requirements but the manufacturer defines both the... 

Make-to-Stock Make-to-Demand Option-to- Order Engineer-to- Order... 

Source - Sourcing Stocked, Make to Order, and Engineer-to-Order... 

Identify and select supply sources when not predetermined, as for engineer-to-order product... 

When Motorola orders a satellite from Ford Aerospace, it expects to wait until the satellite is designed, built, and tested before taking delivery. This type of purchase is an Engineer-to-Order (ETO) purchase. The ETO firm sells its customers its capabilities in certain areas. A common example of this is the... 

Executing, or execution, processes recognize three supply chain business models Make-to-Stock (MTS), Make-to-Order (MTO), and Engineer-to-Order (ETO). In the MTS company, forecasts drive production requirements. Customer shipments are made from a finished goods inventory. An MTO company has an order in hand before it produces. Boeing s commercial aircraft business and Dell computers are examples. An ETO company must design parts of the product for customer requirements. Each delivered product to a customer is unique. A Configure-to-Order company, not specifically addressed in SCOR, is a hybrid of the MTO and the ETO models. 

Engineer-to- order Products that need unique engineering design, customization, or new materials. Each order results in a unique bill of material, some unique part numbers, and custom routings. (Adapted from APICS Dictionary, 10th edition)... 

Levels (SCOR) SCOR processes decompose to three levels. Level 1 is composed of the five core management processes. Level 2 is the configuration level and depends on supply chain design. Level 2 process examples are a letter and a number, like PP for Plan supply chain and Ml for Make-to-Stock. Configuration types include Make-to-Stock, Make-to-Order, and Engineer-to-Order. Level 3 activities are process elements supporting Level 2. Level 4 processes are company-specihc and fall outside SCOR. 

It is possible for the project engineers to order long-lead bulk items (particularly valves, which can be ordered early from P ID information), and hand them over to the construction contractor, who must procure the balance of items. This is indeed sometimes practised, but it brings problems of its own, in particular a duplication of systems. 

Elgh F (2014) Automated engineer-to-order systems a task oriented approach to enable traceability of design rationale. Int J Agile Syst Manage 7(3/4) 324-347... 

CM4, which covers the allocation of processes within the supply chain to respective geographic regions, seeks to evaluate where, for example, the distribution processes for an identified customer segment are located. Moreover, it involves a detailed discussion of which kind of deliver, make, and source processes have to be implemented. Hence, it is determined, for instance, whether the delivery process describes the delivery of stocked products, make-to-order products, or engineer-to-order products. 

Source process (Process type) Source stocked product (SI) Source make-to-order product (S2) Source engineer-to-order product (S3)... 

The customer area contains dimensions such as the strategic supply chain orientation of a company in order to decide whether the supply chain is agile or leagile . Furthermore, it is determined which competitive priorities are essential and if the product shall be delivered as a stocked product, make-to-order product, or engineer-to-order product. 

The second decision area, the manufacturing area, implies dimensions containing topics concerned with the products. Thus, the number of modules for each product is recorded as well as whether the modules are categorized as noncritical or strategic exploit. Moreover, the process type is recorded (make-to-stock, make-to-order, or engineer-to-order) and it is decided where the decoupling point shall be positioned within the value chain. 

Decoupling point Engineer-to- order Make-to-order Assemble-to- order Make-to-stock ... 

Gosling, J., Naim, M. M. (2009). Engineer-to-order supply chain management a literature review and research agenda. International Journal of Production Economics, 122(2), 741-754. 

Hicks, C., McGovern, T., Earl, C. F. (2001). A typology of UK engineer-to-order companies. International Journal of Logistics Research and Applications, 4(1), 43-56. 

Deliver Deliver stocked product (Dl) Deliver make-to-order product (D2) Deliver engineer-to-order product (D3)... 

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