Engineer-to-order (ETO) production planning and control: an empirical framework for machinery-building companies

Abstract

This paper illustrates the results of an empirical study involving 21 engineer-to-order (ETO) companies, operating in the machinery-building industry. The study investigates the needs and requirements of such companies in terms of software support for governing the businesses, with particular emphasis on production planning and control (PPC) processes. An empirical analysis investigated two main aspects: (i) the set of business activities performed by the companies in the analysed industry and (ii) the relevant, high-level software functionalities required for the execution of such activities. As an answer to the observed compelling need for reviewing the general approaches to PPC in machinery-building companies, we develop an empirical, high-level production planning and scheduling reference framework, encompassing all the activities involved in the order fulfilment process.

Understanding dynamism and complexity factors in engineer-to-order and their influence on lean implementation strategy

“…A major driver of the ETO business environment is that the company and the customer agree to respectively sell and buy some products that did not yet exist (Chen 2006). Detail features and mix of the final products are driven by customer orders through on-going negotiations and involve diversified organisational arrangements and product portfolio (Gosling and Naim 2009;Adrodegari et al 2015). Therefore, some level of uncertainty for change prevails throughout the process.…”

“…ETO is normally adopted with the primary aim of responding to variety and customisation needs (Adrodegari et al 2015;Jiao, Zhang, and Pokharel 2005). Traditionally, price was not the main issue in ETO as long as the agreed quality levels were met.…”

“…Azadegan et al (2013) found out complexity and dynamism of the environment significantly influence the performance achievements from the lean implementation in repetitive manufacturing firms. We also know that complexity and dynamism are relevant in describing characteristics of ETO environment (Adrodegari et al 2015;Gosling, Naim, and Towill 2013). The limited consideration of these context factors in lean implementation studies as well as the motivation of some ETO firms in capital goods manufacturing industry to implement lean (e.g.…”

A Lean Approach for Real-Time Planning and Monitoring in Engineer-to-Order Construction Projects

“…The proposed approach considers four main steps [53]: (1) process planning; (2) pitching; (3) synchronization; and (4) standardization-process templates, which are explained in detail in Section 5. 3 The process planning step takes place at the end of the design phase. As visualized in Figure 3, actors from design, planning, and execution define in collaboration the construction process.…”

“…In the worst case this can lead to construction interruptions (due to missing material), which can be considered as one of the main causes of construction cost explosions [2]. On the contrary, good planning and effective measuring of the construction progress are, notoriously, the preconditions to produce and deliver ETO components on time [3].…”