Engineer-to-Order (ETO)
An ETO (ETO, Also called contract manufacturer, design-and-build shop, design-to-order shop) A shop that designs and builds products for customers. Each customer order results in a unique set of part numbers, bills of material, and routings. Shop, also called a design-to-order shop, a design-and-build shop, or a contract manufacturer (Also called make-to-order, job shop) A shop that manufactures custom products that customers order. The product could be standard and custom items combined to meet the customer’s special needs, or could be the manufacture of all-custom parts and assemblies from the customer’s design., designs and builds products for customer Someone who agrees to buy goods from you.’s. Each customer Someone who agrees to buy goods from you. order results in a unique set of part numbers (PN, P/N) A unique number that identifies an item., bills of material (BOM) A list of part numbers and the quantity of each part needed to make an assembly., and routings (Also called bill of operations, instruction sheet, manufacturing data sheet, operation chart, operation list, operation sheet, route sheet, routing sheet, job routing, process sheet). A sequential listing of all operations needed to make a part or assembly. Because of the one-off nature of an ETO shop’s work, the company cannot use past production history to predict future costs, order statuses, or quality.
Workflow in an ETO shop begins with a sales order (SO) A record of information needed to authorize and process a customer’s order. The sales order lists all items to be sold to the customer. The sales order leads to a job order (JO, Also called work order, manufacturing order, production order, run order, shop order) A document that conveys all the information needed to produce a specific part or assembly. In Made2Manage, a job order for a make item is linked to the sales order so that the job can be scheduled to meet the sales order’s due date. A job order for a stock item is initiated to replenish inventory. that specifies the work to do. After the shop produces the items, the Shipping department ships them.