on 11-24-2008 7:22 AM
Hello,
What is the difference between Engineer To Order (ETO) & Make To Order (MTO) Process.
Regards,
Naveed Ansari.
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
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Hello Lakshmi,
Good Explanation. Thanks a Lot.
Regards,
Naveed Ansari
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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
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