engineer-to-order

[Former Member]

Hi guys,

Pl.tell where to use engineer-to-order strategy.

regards

[rupesh_brahmankar3 · Accepted solution]

Dear,

The engineer-to-order (ETO) supports the requirements of companies that manufacture products based on their customers' unique engineering designs. Companies building ETO products require special processes for estimates, purchasing materials, engineering changes, cost allocation and tracking, and ongoing work with customers.

Engineer to order its purely customised as required.

Based on customer requirement you need to create the design or other basic requirement.That means you need to create masters once the order is recieved. You will not be having SG for ETO products in Std SAP. You need to confirgure SG as per the reqts

Regards,

R.Brahmankar

[Former Member]

Hi ,

Engineer to order has longest delivery lead time as It combines lead time of design + Lead time of procurement + Lead time of manufacturing + Lead time of transport .

This particular strategy takes more time than make to order or assemble to order or make to stock ( Shortest time ) .

You may customise strategy group as per your clients demand . We use strategy 20 in our scenario as customer order triggers all other process .

We also use strategy 40 as many components are common and can he planned beforehand . As each product is unique and will not be produced again separate material master is created each time with planned std cost with price indicator S . As BOM components are huge we may use ck11n and ck24n to update std cost in accounting view 1 .

Hope this helps you !

Neal

Edited by: Neal Gibson on Oct 3, 2008 10:58 AM

[Former Member]

ETO is used when the product is designed as specified by the customer.

It involves exclusive BOM & routing.

Procurement happens only upon receipt of SO.

Costing should be settled against the SO.

Eg.

1. Ship building indsustry.

2. Certain auto manufacturers like Rolls Royce go for ETO, like various fitments as desired by the customer.

Best reg.

K.Kumar