World Trade Magazine's article "Engineer-to-Order Manufacturers
Find Little Global Competition" features information from the
ETO Institute (www.etoinstitute.org/ ). According to the article,
"ETO (Engineer-to-Order) manufacturing cannot be outsourced. The
unique one-of-a-kind products manufactured are produced and
completed in the customer's site and are modified as an
engineered work-in-progress. It is this specific geographic
requirement that provides these manufacturers a global
competitive advantage. The term engineer-to-order (ETO) denotes
a style of manufacturing rather than a specific industry
segment. Other synonymous terms are "project-based" or "custom"
manufacturers. ETO companies typically have distinct
characteristics about the way they conduct business that
differentiate them from discrete or repetitive manufacturers."
According to Thomas R. Cutler, author of the article is also
spokesperson for the ETO Institute, "ETO companies build unique
products designed to customer specifications. Each product
requires a unique set of item numbers, bills of material, and
routings. Estimates and quotations are required to win business.
Products are complex with long lead times, typically months or
even years. Unlike standard products, the customer is heavily
involved throughout the entire design and manufacturing process.
Engineering changes are a way of life. Material is purchased not
for inventory but for a specific project. All actual costs are
allocated to a project and tracked against the original
estimate. Once complete, the product is typically installed at
the customer's site. In most cases, aftermarket services
continue throughout the life of the product."
The ETO Institute is an independent organization committed to
helping North American engineer-to-order (ETO) manufacturers
compete more effectively in an increasingly competitive global
environment. Our resources section provides a list of articles
and white papers focused on manufacturing and, in particular,
engineer-to-order. The bulletin board provides a forum for
organizations to share ideas and information and to discuss
challenges and business issues.
What do you think about this article? Do you agree or disagree with it? Be the first to comment on this article, and share your thoughts with the world. No registration is required to post comments.
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Article: ETO Institute In World Trade Magazine Author: Thomas Cutler Publication Date: 2008-01-31 Total Views: 496 Word Count: 268 Category:Home /
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