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Engineer to order is a production approach characterized by: [1] Engineering activities need to be added to product lead time. Upon receipt of a customer order, the order engineering requirements and specifications are not known in detail. There is a substantial amount of design and engineering analysis required.
Build to Order (BTO: sometimes referred to as Make to Order or Made to Order (MTO)) is a production approach where products are not built until a confirmed order for products is received. Thus, the end consumer determines the time and number of produced products. [ 1 ]
Based on comparing P and D, a firm has several basic strategic order fulfilment options: [3] Engineer-to-order (ETO) - (D>>P) Here, the product is designed and built to customer specifications; this approach is most common for large construction projects and one-off products, such as Formula 1 cars.
In applied probability, an assemble-to-order system is a model of a warehouse operating a build to order policy where products are assembled from components only once an order has been made. The time to assemble a product from components is negligible, but the time to create components is significant (for example, they must be ordered from a ...
Products or services are produced against a forecast. M2 equals a "Make Build to Order" configuration. Products or services are produced against a real customer order in a just-in-time fashion. M3 stands for the "Make Engineer to Order" configuration. In this case a blueprint of the final product is needed before any make activity can be performed.
Design is an iterative process, often designs need to be modified due to manufacturing constraints or conflicting requirements. Whether a customer order fits into the timeline depends on the industry type and whether the products are, for example, built to order, engineered to order, or assembled to order.
Finishing schedule may involve assembly but also final mixing, cutting, packaging etc. The FAS is prepared after receipt of customer order. FAS schedules the operations required to complete the product from the level where it is stocked (or master-scheduled) to the end-item level.
The manufacturing or production engineer's primary focus is to turn raw material into an updated or new product in the most effective, efficient & economic way possible. An example would be a company uses computer integrated technology in order for them to produce their product so that it is faster and uses less human labor.