from eto to mass customization a two horizon eto enabling process

During the past few years, many companies are playing in their respective market managing one batch of their commercial offer as mass customizer and another as a pure Engineer-to-Order (ETO) company. This newly created business model generates new needs and issues both in the internal organization approaches, and in the supporting IT systems. The competitive advantage of successful firms relies on the effective management of their purely customized orders, with the aim of including relevant knowledge and information in the standard space of action. Therefore, this study aims at conceptualizing this new business reality, presenting an innovative underlying scheme for the ETO enabling process in which the central focus is on the design phase. Furthermore, a set of success practices are represented, discriminated between long and short term horizons. In this context, both technological and organizational aspects have been explored. Lastly, applicability of the proposed framework has been empirically validated through case studies

Models and practices of cooperation between R&D and Engineering in an ETO operations environment: Supporting product development and order-specification processes

Product-variety management in today’s market is, most of the time no longer an order-winning choice, but an order qualifier. This means that in turbulent market conditions, customers seek out companies that offer shorter delivery times within a customers’ price tolerance. In this context, engineer-to-order (ETO) is defined as an operations strategy that is oriented around a high degree of product customization and associated engineering processes for quickly fulfilling customer specifications. The focus of this thesis lies in the design and engineering activities of companies adopting an ETO strategy. This encompasses product development processes – usually managed by the Research and Development (R&D) department – and order-specification processes – usually managed by the Engineering department. These processes have a significant impact on the value chain’s downstream material processes, like manufacturing, and therefore significantly impact the company’s overall performance. A literature review confirms that limited advice has been provided on how ETO companies should manage distinct product development and order-specification challenges and opportunities.Discussions with company representatives further confirm the potential effectiveness and efficiency improvements that could be achieved by implementing new organizational practices and IT tools. The primary objective of this thesis is therefore to develop models and practices of cooperation between R&D and Engineering that contribute to effective and efficient product-development and order-specification processes in ETO companies. Methodologically, a case-research strategy is adopted in this thesis. The results presented are based on two series of multiple case studies of eight companies from within the mechanical engineering sector. The main contributions of this thesis are as follows. (I) A three-step methodological approach to assess the ETO environment is presented: Assessment of product variety and customization, modelling of the ETO process, and measurement of operational performance. (II) Four interaction models between R&D and Engineering are examined, contingent variables influencing the development and specification of ETO products are identified, and their influence on the interaction models is discussed. (III) An information and knowledge-reuse situations framework is introduced; a two-horizon, short- and long-term ETO-enabling process is presented; and ETO-enabling organizational practices and IT tools are summarized

What benefits do initiatives such as Industry 4.0 offer for production locations in high-wage countries?

According to claims made by the proponents of initiatives such as Industry 4.0, information technologies will in the future play a substantially more significant role in production processes both for the service sector and for the production of physical goods than they do today. This paper starts by discussing the origins, essence and expectations of initiatives such as Industry 4.0. It then proceeds to outline concepts and examples around such initiatives. Finally, it offers a realistic view of the likely future effects. The paper has a special focus on examples in Switzerland.ISSN:2212-827

Globally Distributed Engineering Processes: Making the Distinction between Engineer-to-order and Make-to-order

This paper explores how the organizational and technological requirements of globally distributed engineering processes differ for make-to- order (MTO) and engineer-to-order (ETO) production and highlights potential research themes which might contribute to a better understanding of this field. The preliminary results presented in this paper are based on a literature review and an on-going exploratory case study with manufacturers from the mechanical engineering sector, responsible for the engineering of both MTO and ETO products in a global setting. We propose a preliminary framework to identify and structure the different requirements ETO and MTO products pose for globally distributed engineering processes. We hope to stimulate further research through emphasizing the main research gaps within this field

Globally Distributed Engineering Processes: Making the Distinction between Engineer-to-order and Make-to-order

This paper explores how the organizational and technological requirements of globally distributed engineering processes differ for make-to- order (MTO) and engineer-to-order (ETO) production and highlights potential research themes which might contribute to a better understanding of this field. The preliminary results presented in this paper are based on a literature review and an on-going exploratory case study with manufacturers from the mechanical engineering sector, responsible for the engineering of both MTO and ETO products in a global setting. We propose a preliminary framework to identify and structure the different requirements ETO and MTO products pose for globally distributed engineering processes. We hope to stimulate further research through emphasizing the main research gaps within this field.ISSN:2212-827

A simulation-based decision support system for industrial field service network planning

Technical field services for industrial machinery and equipment have become increasingly important for original equipment manufacturers. To deliver services to their customers, companies have to build up new core competencies and infrastructure, a challenge due to the high complexity and dynamics of this business. To assist companies in the strategic design of their network and the planning of resources for delivering industrial field services, we present a model-driven decision support system that uses discrete event simulation to support decision makers in various aspects of strategic design and tactical planning. The benefits of the decision support system include the creation of a generic framework that makes it possible to create simulation models of different field service networks for multiple purposes. Specifically, the system can be used to support various tactical planning and strategic design decisions while keeping investments low in terms of time consumption and money spending. In addition, the paper closes an identified gap involving a lack of decision support for the management of field service networks. An application of the decision support system in an exemplary case is used to illustrate potential applications and benefits