Engineer to Order Process- Understanding its Workflow

Engineer to Order Process- Understanding its Workflow
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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.

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.