Difference between revisions of "M3"

Revision as of 16:46, 20 August 2020

The collection of processes associated with producing products and services for Engineer-to-Order projects. The purpose of Make-To-Engineering-Order is to manufacture, assemble or produce custom products based on actual customer orders engineered to customer specification.

Engineered to customer specification implies that the customer provided requirements regarding the product and/or the service delivered meet requirements provided by Customer to Seller during the Quotation or Ordering process. These requirements may result in the need to develop ("engineer") order-specific Bills-Of-Materials/recipes, routings and/or work instructions.

Make-To-Engineering-Order is the M process that facilitates the ETO supply chain strategy.

Use Cases

• Custom engineered products
• Custom construction
• Industrial projects
• In the software industry: Custom software development

Make-To-Engineering-Order processes are generally the most resource intensive version of the M processes and are therefore not a good fit for low margin products.

Notes

Make-To-Engineering-Order and M2 may both require order specific item numbers, Bill-Of-Materials, routing and/or work instructions. For M2 are typically rule-based and engineered in advance of receiving the order. For Make-To-Engineering-Order some or all need to be engineered after receiving the order as the Customer (Order) provides the specifications. Order Cycle Time Make Cycle Time Perfect Order Ratio Orders Damage Free Ratio Orders Defect Free Ratio Supply Chain Costs Cost of Goods Sold Cash Conversion Cycle Days of Inventory Engineer-to-Order Bill of Materials Plan-to-Produce