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ETO(engineering to order) versus MTO(make-to-order)

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ETO(engineering to order) versus MTO(make-to-order)

Postby Guest on Mon May 23, 2005 9:43 am

Hi Experts!!

What is the difference between ETO(engineering to order) and MTO(make-to-order)? Is ETO a subject under MTO or not?

Any comments will be so helpful, thanks...

Guest
 

Postby Guest1000 on Tue May 24, 2005 8:12 am

ETO:

Manufacturing environment in which complex production activities under essentially one-off conditions are undertaken for a specific customer.

The production processes are managed using a network. The dates, resources, and associated costs are planned at this level.

Therefore this is produced through the use of Project systems.


MTO:

Includes both sales-order-related production and engineer-to-order.

Normally used as sales-order-related production where you make based on sales and the cost of production is allocated to the sales order as cogs and the product is delivered from sales order stock. It is also normally a product that has been pre-engineered and is produced using standard routing and bom.

Hope this helps
Guest1000
 

Postby mike_ac on Tue May 31, 2005 5:01 am

I would extend MTO to include any pre-engineered item that is made specifically for an individual customer order. Thus, assemble-to-order, and configure-to-order are subsets of MTO.

ETO properly belongs in project systems, but some simple engineering modifications to an otherwise MTO item can be handled without using PS, by direct maintenance of the order BOM on completion of the engineering activities. You will lose product-level engineering cost tracking this way, though.
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