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Engineer to order vs make to order





Assemble-to-order (ATO Using this filmpjes approach, companies will have some sub-assemblies already built, stocked and ready to filmpjes assemble based on edition the order customers requirements.
The opposite business model is to manufacture products for stock MTS (Make to Stock which is push-type production.
Forms of MTO vary, for example, an assembly process starts when demand actually occurs or manufacturing starts with development planning.
Intricacies of an engineer-to-order product, each approach to getting a order product designed and manufactured brings along its maken own set of challenges; however taking steps to address those issues fire directly can mean a competitive advantage for an ETO company.
Milestones : Project milestones are established and applied to the order development to structure a client billing plan.For instance, Item Numbers do not need to exist in GP Inventory to be used in ETO. .Pull-type production, such as MTO, BTO, ATO, engineer and ETO, is a business model of the assembly industry in which the quantity to produce per product specification is one or only order a few.It is also important to ensure you are in fact building what the customer ordered.Scale out : This involves fine tuning for further details, such as project team and management designations, departmental labor/fabrication, re-scheduling, anticipated resources, and release of the WBS to establish and coordinate project activities.For example, construction, plant construction, aircraft, vessels, bridges, and.More importantly, managing BOMs means that product record information can be leveraged in the future.From the viewpoint of supply chain management, it online has been proven that those who can satisfy due dates promised with customers and can shorten lead times will have an competitive advantage.Challenges with an engineered-to-order approach, moving forward maken with an engineered-to-order approach means that there will be a high level financieel of customer participation in the design and manufacturing process of the product. And one of the best features of the product - if the ME is linked to a Sales" Line, accepting the ME can also update the Cost and Price on the sales line and change the Item from a non-inventory Item to a Sales.MTO (Make to Order) is a manufacturing process in which manufacturing starts only after a customer's order is received.



But film the favorite typical ETO make environment usually deals with the maker design pokemon and build of unique custom engineered complex machinery and industrial equipment - one in which there is heavy maker involvement of the following engineering disciplines; mechanical, electrical, mechatronics, software, manufacturing and systems engineering.
In MTO companies typically have a pokemon fixed design maker and specifications to start with.
For example, it might be difficult to answer questions like how much and what inventory should be lined up for production.
Because most product data (design specifications, requirement files, engineering changes, etc.) is often tossed back and forth several times between the ETO company and the customer, either party can order become confused if the exchange of product information is poorly managed.
National Bicycle Industrial., Ltd.To speed up delivery time, the adoption of concurrent engineering, integrated product team, and lean product development methodologies are used.Controlling engineering changes is important for overall product accuracy.Says "We can deliver a custom-made bicycle to you within two maker weeks.".A direct pokemon link between CAD (computer aided design) and fabrication pokemon is made more effective by eliminating the need for ERP (enterprise resource planning) input as a control.Most manufacturing design decisions tends to be highly iterative.Typically with the engineered-to-order approach, production information and specifications are constantly moving between the ETO company and the customer.For example, having a BOM record may become especially handy in the event that a highly customized product becomes more of a commodity pokemon product.In engineering to meet unique customer maker orders, designs spring from collaboration with the customer, beginning with a need and a concept.Because engineered-to-order products are well-tailored, they are often built from difficult to source parts, expensive parts and highly engineered components.Some of the required components are stocked whereas more expensive or highly customized parts may need to be produced.And even though challenges can arise with the engineered-to-order approach, there are simple steps hachi that can be taken to create efficiencies throughout the design and manufacturing phases.




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