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ETO & MTO

Former Member
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Hello,

What is the difference between Engineer To Order (ETO) & Make To Order (MTO) Process.

Regards,

Naveed Ansari.

Accepted Solutions (1)

Accepted Solutions (1)

Lakshmipathi
Active Contributor
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Dear Naveed

We can call ETO as pre sales activity which involves exclusively for new product development, for which there will be a separate department to look after these sort of activities.

- study feasibility report

- Inform customer whether the development is feasible or not

- If feasible, give a quote with development cost

- If customer approved the quote, ask for tool cost

- Once tool cost is received, develop a die for tooling

- Indicate a tentative despatch plan of pilot samples

- Prepare drawing according to customer spec

- Submit samples for customer approval

- If approved, transfer the drawings to delivering plant

- If not approved, study customer comments and redespatch samples for approval

Whereas, in MTO scenario, you will be initiating productiion for your regular items.

thanks

G. Lakshmipathi

Answers (2)

Answers (2)

Former Member
0 Kudos

Hello Lakshmi,

Good Explanation. Thanks a Lot.

Regards,

Naveed Ansari

Former Member
0 Kudos

Hi,

ETO is more of R&D type of order whereas MTO is a regular production but commences only against

a Customer Order.

Thanking you,

Best Regards,

R.Srinivasan