Engineer to Order Process- Understanding its Workflow

1. Engineer to Order Process- Understanding its Workflow ============================================================== Be it any kind of manufacturing, when it is about creating a product from scratch, there will always be a degree of complexity involved in the whole process. And we haven’t even started with products that are ACTUALLY complex. Now we come to engineer-to-order or ETO products, which truly encompass the real nature of what complex products are all about and what they embody. The complexity of ETO products only increases because of the added engineering input, added costs, and also the modifications in change management that come into the scenario. Whenever it is about designing and manufacturing complex products, it’s crucial to have a potent and robust ERP system to assist in tackling that very complexity involved. One of the biggest reasons for such a system within the engineer-to-order process is to sort out the complex engineering requisites that usually need top-notch efforts in supply chain management which tend to be time-consuming and top off the overall manufacturing or production process. Manufacturing Processes In hindsight, three specific manufacturing types are doing the rounds in the industry- configure to order, built to stock, and custom product development (which we call engineer-to-order). We will be focusing on the engineer-to-order workflow in this one. Engineer to Order- Workflow Made-to-order and engineer-to-order are two industrial manufacturing terms regarded in the same breath but have some differences despite all. ETO has some more additional steps that make it a more extensive and intensive process than MTO, available on both the production and sales sides. Given below are a few steps involved in the workflow of the engineer-to-order process- 1- Sales Engineering Process The very first step in an ETO order starts with a Request for Quote or RFQ. This RFQ has the requirements a customer has in terms of the to-be-prepared product and its related specifications. Once the sales team receives this RFQ, it collaborates with the design and engineering departments to utilize the available resources (and include new ones if need be) while staying on track with the revenue guidelines to ensure that a profit is always possible in the situation. This step extends till the time a final perfect configuration is achieved while ticking all the right boxes too. 2- Planning Process ETO differs from MTO in one of the ways where it’s a per-product basis for every order. A company may either require different variations of an existing product or there might be a need for an entirely new method of production for every product which is to be made available in the product line.

2. To sort this out, there is a need to have an accurate and well-defined planning process so that the manufacturer always operates within the prescribed capabilities while also keeping the involved costs in check. 3- Management of Inventory Inventory management is crucial to organizational success because of the fact that many ETO products require dedicated parts and components that are specialized in nature. Accurate inventory management is crucial as it does not allow wrong application of specific parts and also assist in keeping the production schedule as well as line on track. 4- Manufacturing In an ETO ecosystem, given the immense number of possibilities of new product iterations for every product line, bringing about multiple variables to the fore in their own right. Automatic production schedules, accurate BOMs, and the an appropriate shop floor management are important requisites for a manufacturing process to be fruitful and beneficial to both the clients as well as the overall organizational objective. This becomes all the more crucial when there is a need for change orders that bring about the need for changes in either the production line in multiple phases or anywhere along the factory floor too. Why a Cloud-Based ERP Solution is Required With the present customer preferences bringing about a huge change in the manner how complex processes are simplified for instant gratification, factors like mass customization, quicker deployment as well as lead times are piling up the pressure on engineer-to-order manufacturers all over the world. This is a big reason why the engineer-to-order space is in dire need of accurate and dynamic ERP systems that are cloud-based and work with the same level of efficiency with a remote server. With Epicor and KBMax’s revolutionary ERP products and capabilities, achieving high levels of accuracy becomes a reality. The robust ERP systems that are on offer deliver exhilarating experiences for sales and engineering teams as well as customers. It’s a win-win that’s absolutely perfect.