The August issue of Tooling & Production highlights, “Leaning
ETO Project Management.” The term engineer-to-order (ETO)
denotes a style of manufacturing rather than a specific industry
segment. Other synonymous terms are “project-based” or “custom”
manufacturers. ETO companies typically have distinct
characteristics about the way they conduct business that
differentiate them from discrete or repetitive manufacturers.
According to Thomas R. Cutler, spokesperson for the ETO
Institute, “ETO companies build unique products designed to
customer specifications. Each product requires a unique set of
item numbers, bills of material, and routings. Estimates and
quotations are required to win business. Products are complex
with long lead times, typically months or even years. Unlike
standard products, the customer is heavily involved throughout
the entire design and manufacturing process. Engineering changes
are a way of life. Material is purchased not for inventory but
for a specific project. All actual costs are allocated to a
project and tracked against the original estimate. Once
complete, the product is typically installed at the customer’s
site. In most cases, aftermarket services continue throughout
the life of the product.”
The ETO Institute (www.etoinstitute.org) is an independent
organization committed to helping North American
engineer-to-order (ETO) manufacturers compete more effectively
in an increasingly competitive global environment. Our resources
section provides a list of articles and white papers focused on
manufacturing and, in particular, engineer-to-order. The
bulletin board provides a forum for organizations to share ideas
and information and to discuss challenges and business issues.
Thomas R. Cutler info @ etoinstitute.org www.etoinstitute.org
954-486-7562
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