Systems of ERP and the market of manufacture of ETO Part two: ETO against reiterated differences

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After having described what precedes, it could be useful that we recapitulate the principal differences between engineer-with-order (ETO) and the environments ritrs/de volume-bases manufacture throughout various phases of a life cycle of product like completely in conformity with various functional departments in an organization of manufacture. First of all, before any manufacture, there is work extended in the phase of definition of products (C. - with-D. evaluation, design, and technology) before something can be made, bought or delivered. However, the principal difference is that within the companies of ETO which the design of products is an integral part of production (if not even after, during the installation of site and the commission), while for reiterated, of the standard articles the design typically accomplished and is well given above the wall manufacture before the production starts.

With the manufacture of volume, the work of definition of products is deadened (recovered) above the articles the 'life cycles, which are often measured in thousands of articles and over several years of a commercial utility. While a possible time overflowed here will carry out the time-with-market of the product, (which is often the competitive advantage (strategy) in addition to the lower costs for the reiterated manufacturers), it does not exert any effect the total production time of any sales, work, or particular order of project, and thus is not handled same manner. Moreover, the wide costs of the definition of products are absorbed in the overheads of company or the calculation of the standard costs of product, so that overrun costs can be controlled within the framework of a strategy of long-term evaluation.

The manufacture of Project-based/ETO is very different, like a majority of all the production time and expenditure of project can come from the technology, which makes it crucial so that the company machine correctly and of maintains costs. The complex manufacturers manufacture the products which are of raised variation, have the complex devices and options, and vary in the configuration of user. Each work is single and the variables are based on characteristics of customer rather than in the options of the actions. They consequently invest the significant dollars in the design of products and have prolonged sales and processes of businesses of manufacture, often requiring collaboration between the customer, the representatives of sales, and the critical matter experts of in back-office.

The manufacturers of ETO concentrate on special work before which were never made, or the work made on order which is similar to others but requires wide modification to render service to customers of the special conditions. Moreover, the approval of customer can stipulate much technical changes and with information proportioned on the latter change must be convenient once released with manufacture and the purchase, and sometimes even with the force of service of field. In fact, stops of design of products almost never, given customers prerogative to change opinion in the medium of the current, in degree which they feel free to change the characteristics or to sometimes add new conditions to the original orders, while informing directly personal of supplier 'of manufacture of S and by avoiding the suitable channel of the sales and the department of technology. From time to time, the customer could try to play deaf-mute and even refuses to pay all the changes with the original orders if the company cannot again detect all these requests for change to the initial order and to prove badly it.

Moreover, since the majority of the projects have single conditions, the completion period of the processes of definition of products will carry out directly on the delivery of the project, and will affect the contract. The company will pass by it once again on the next project, even if the product similar to is previously delivered. Thus, there is indeed little or nothing to amortize or recover the costs. For these reasons, far from being been unaware of, those will upfront proceeded definition of products must be carefully envisaged and explained.

Moreover, of the sophisticated interactions of customer (such as applications of ordre/de definition and management of contract) are required, whereas the needs of service to the customers are also directed towards the report for contract for management on the heap and cost. Attend the engineers of supplier of contract of force of changes and the engineers of material sub-contracted of manufacturer (OEM) to be in a communication of constant collaboration in all the design and the cycle of production of the unit. One of the most manual functions in an organization of supplier traditionally were the request for sell-side of the management of the quotation (RFQ) (in opposition to the price standard discount and lists in the reiterated environments), which usually turns around ones the expert individuals of key who have the direct knowledge of the product or who can manually gather the various transmitters of information in a unified document, because the proposals for a contract include quotations, the evaluation, information on the product detailed, of the data sheets, and the diagrams of the computer-aided design (CAD). With the complex manufacture of ETO, where quality is given, and while the capacities available are on the par, which makes gaining it is the capacity to fix a competitive price. There is an enormous difference between the businesses in profit and the businesses of profit it is advantageous to accept that and who are a situation of profit for all for the customer and the supplier.

On the one hand, in almost all the industrial segments of manufacture, the pressure to reduce completion periods became a constant and a concern never expansion. According to the complexity of product, some partial parts or assemblies could be quoted immediately, whereas others must be strongly specified. To develop a proposal for a contract requires many levels to check and reverify requirements of customer and possibilities of process of equipment, like the preliminary work of design and approvisonnement of the specific elements or materials. The process passes typically by much iteration each time the customer discovers a new condition or constraint. Nature with strong labor force intensity of work of this process often had like consequence the prolonged cycles of estimate, which alternatively often translated with lost commercial opportunities.



By arming an allowing technology to return everyone rather smarter work than harder, the complex manufacturers could, sometimes, reduce time when it takes to create evaluations of contract. For this purpose, the modern configurators of product became allowing technology pivotal to simplify complex operations of ETO in the direction of the personalization of mass, providing the capacity to more easily configure the individualized products and the services at the time when the sale (position) with integration with the systems of in back-office. To provide the customers exactly what they want is not exactly a new concept, but the idea to never give the range expansion of customer of the choices as soon as possible became the center of many various industries 'of the activities adapted to the customer requirements, given that which obtains a product precise and adapted to the customer requirements to the customer competitiveness stimulates more quickly.

Generally the configurators of product are software tools that the aerodynamic process of recording of the orders while requiring of the customer to choose among a whole of preset options associated with a generic product, and then observe preset rules with constraints to configure the particular finished product correctly. The configurator then populates the attributes of the end product lately configured (called the variable product), of the tests for all the conflicts, and produced variable product with adapted BOM, advance, and evaluation based on preconceived rules and calculations. Because the configurators of product evolved/moved to include much more sales, of marketing, and tangential financial functions with the product intrinsically (for example, the evaluation, analyzes cost, commissions on the sales, available-with-promise [triphosphate adenosine], statute of order, etc), the limit configurator of sales were employed with more and more to reflect their increased role. It can describe their prolonged role more exactly as tools which help of the salesmen with building not only the viable products, but like carrying out relative tasks, such as the generation of proposal and quotation. Always, the configurators could have only limited the utility for more the complex, single in addition to project-based environments.

In any case, the ETO-directed systems must facilitate the transfer of the information of real-time close and complex knowledge to product for collaboration through the prolonged company, and should particularly be adapted to the organizations which seek to maintain the complex selling of the reports/ratios, such as the companies whose functions of supply and sales are based on subcontractors, associations of channel or a personnel of sale distributed. For this purpose, a manual process which took anywhere a day at several days should now be accomplished in approximately a minute with the suitable use of technology.

With the manufacture of volume, convergent means of technology obtaining from the teams together. According to the dictionary of APICS, it is concept which refers to the participation of all the functional fields of the company in the activity of design of products. Suppliers and the customers often are also included. The intention is to increase the design with the entries of all the principal agents. Such a process should make sure that the final design meets all the needs for the agents and should ensure a product which can be quickly brought to the market while maximizing quality and reducing costs to the minimum. Also called Co-conceive, convergent design, participation early of manufacture, parallel technology, simultaneous design/technology, design of team/technology, development of integrated product, participative design/technology, quality circles or the design for manufacture (DFM), simultaneity is most of the time about team work and of the division of knowledge. To the manufacture of project, however, simultaneity goes one thousand other while running the design, manufacture, and the commission simultaneously, since it is often the only manner of satisfying the customer the 'deadline of S.

ETO and project-directed purchasers of ERP should thus require to gently push questions about the way in which the systems they evaluate the simultaneity of handle. Can the department of design for example, then modifies it to release a partial BOM so that to manufacture she works above, and is added to him or later when they are sure of all the facts? These possibilities are sometimes mentioned like progressive technology , which is the capacity to handle the articles which belong to the project but nondefinite they can nevertheless still be included in the structure of breakdown of work of project (WBS) and the application will envisage around these articles without losing the integrity of the structure.



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