According to the January 2006 issue of the Penton publication
American Machinist, "Engineer-to-order products usually are
complex and, unlike repetitively manufactured products,
customers are involved extensively throughout the design and
manufacturing processes. The steady stream of engineering
changes, and rework that results, makes project planning and
control difficult."
Engineer-to-order manufacturers face intense pressures to reduce
costs and shorten cycle times, while maintaining high quality.
The ETO Institute (
www.etoinstitute.org) points out that, to
stay competitive, domestic engineer-to-order and project-based
manufacturers must turn to technology to stay competitive.
However, their special business challenges cannot be resolved by
traditional, repetitive-manufacturing solutions.
According to Thomas R. Cutler, spokesperson for the ETO
Institute (
www.etoinstitute.org), "The Institute recommends that
manufacturers investigate three levels of technology to help
achieve their business goals. First, point solutions, such as
CAD systems for the engineering department, to improve the
accuracy and speed of engineering functions or
project-management software may be needed to plan and control
projects. Second, manufacturers should consider an integrated
solution that would allow data to flow seamlessly throughout the
organization and give management the timely information it needs
to make informed decisions while improving data accuracy and
eliminating re-keying of data. Finally, the ETO Institute
recommends that manufacturers develop an optimized solution that
would encompass a program of continuous improvement while
removing non-value-added activities, cutting lead times, and
driving waste and cost from the organization."
Successful engineer-to-order manufacturers have developed new
business strategies rather than relying on old business models
that may be better suited to repetitive manufacturing. For
instance, successful engineer-to-order manufacturers do not
compete with commodity machine builders, but rather develop
niche-market expertise that creates product and industry-sector
distinction. Typically, larger, more expensive machines need
more services and support, and generate alternative revenue
streams.
ETO Institute contact info:
www.etoinstitute.org Thomas Cutler
800-902-0300
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