A Concept for Project Manufacturing Planning and Control for Engineer-to-Order Companies

Abstract

Abstract. Engineer-to-order products are customized to a particular client's specification. Planning can be a problem as the products may be large and complex especially due to uncertainties in the duration of the operations. A conceptual project manufacturing planning and control (PMPC) framework is presented in relation to typical engineer to order (ETO) companies. The existing approaches, problems, solutions, and limitations of current manufacturing planning and control (MPC) for ETO environment are discussed. This paper contributes to the development of an improved understanding and more robust definition of MPC in ETO industries, and highlights how the key challenges and the opportunities that PMPC offer in an ETO sector.

Controlling Customer Orders in the ETO/VUCA Contexts

“…The literature assesses the use of existing PPC methods and systems for ETO manufacturing [8,9]. In general, poor match is pointed out between the specificity of ETO (dynamics, uncertainty, complexity) and its needs for the decision support, with the abilities of MRP/ERP [5].…”

“…Heterogenous approaches to production planning are also hybridized (e.g. the project approach and the overall framework of PPC [9]). What MRP/ERP systems are not able to effectively operate is the horizontal integration through linking of planned workflows and items.…”

“…Another important function is facilitating the development of responses to the emerging issues. The approach derives from phenomenological research and existing knowledge, including theories of: ETO manufacturing [3,4,5,6,7], PPC [8,9,10] and operations research [11]. The solution aims at overall visibility and applies integrated model of customer orders fulfillment which enables the control of all workflows affected by the emerging change and disruptions.…”

Taxonomy of Engineer-To-Order Companies

“…Also there are studies carried out by [14] shows a synergistic impact in combining the lean and ERP, but it is still not clear from the extant literature as to how either of these approaches can be successfully applied in ETO companies. [15], proposed a concept for an integrated planning and control conceptual framework based on 'seiban (meaning a manufacturing number in Japanese, is a technique for managing orders in the supply chain which is alternative to traditional MRP logic).' approach for project specific manufacturing, the main focus of the work was limited to development of a new ERP system.…”

“…This work represents a fundamental difference in the information system requirements for MTS, ATO and ETO companies. A detailed literature on production planning and control approaches for ETO can be found in the article [15], in this paper we limit our discussions to the taxonomy. This paper aims to; briefly review the literature on the types of ETO companies based upon an analysis of literature review; distinguish ETO firms that provide a framework for identify similarities and differences between companies.…”