Rootstock’s Revision Management for Engineer to Order (ETO) Manufacturers

Engineer to Order (ETO) is a time period utilized in manufacturing. It refers to a manner wherein a custom or specific product is designed and manufactured. It is frequently used while clients have necessities which can be tough to fulfill the usage of ordinary products. Although it can be more costly to produce than traditional manufacturing, clients can tailor products to meet their unique requirements. Additionally, it enables producers to create smaller goods, which is beneficial for specialized markets or unique uses.

 

When to use the Engineer to Order (ETO) manufacturing in ERP:

Let's consider a scenario, where an order for a spaceship component is received by your aerospace business. This component cannot be satisfied with off-the-shelf solutions, it must fulfill strict performance standards and precise specifications.

Engineer to Order (ETO) manufacturing comes into play here. Every product in ETO is painstakingly designed and customized to satisfy each individual customer's needs. It flourishes in sectors where customization is essential, such as aerospace, defense, and healthcare. Engineer to Order (ETO) is a manufacturing process where the customer specifies what they want, and the manufacturing company designs and makes it accordingly.

Fig. Engineer to Order (ETO) Manufacturing Process

 

Why is there a need for Rootstock ERP in ETO?  

ERP is essential for Machine to Order (ETO) manufacturing because of the complexity and nature of ETO projects. ERP systems can effectively manage all aspects of the project life cycle. ETO’s handle the management of complex design requirements, the procurement of unique materials, and the coordination of skilled personnel, all of which are critical to ETO's characteristics.

In addition, ERP provides real-time monitoring of project progress and ensures better project management, cost control and timely delivery to meet customer needs. It helps in efficient allocation of resources, reducing waste and optimizing resource utilization. Without a Rootstock ERP, ETO developers are at risk of operational inefficiencies, project planning errors and inaccurate cost estimates.

The system helps engineers, production teams and project managers collaborate and work seamlessly, ensuring the successful delivery of well-planned projects, customer satisfaction and profitability. ETO production unit.

 

The following steps make the engineer-to-order manufacturing process easier in Rootstock ERP:

Engineer to Order (ETO) manufacturers have unique challenges as each product or solution they create is unique. Therefore, they cannot improve productivity and profit "in volume". The Rootstock Engineer for Order ERP coordinates the planning, production and accounting of each order, so even though the end product is unique, the process is standardized.

As a trusted Rootstock partner, we would like to highlight the steps that make the engineer-to-order in rootstock manufacturing process easier:

Fig. Rootstock Manufacturing Process of Engineer to Order

 

1. Product specification:

• First, the customer provides information about the product he needs. Typically, the customer submits a Product Requirements Document (PRD) detailing their requirements.
• This is usually done through a Request for Quotation (RFQ) or Request for Proposal (RFP).
• The engineer looks at the Product Requirements Document (PRD) and determines if the product can be manufactured with standard parts, or if special parts must be designed and manufactured.

 

2. Design creation by the engineering team:

• The Rootstock engineering team creates a design that meets these requirements. A Rootstock engineer must design a product that meets the customer's needs. This may involve creating custom components(objects), custom Salesforce automation or modifying existing features to meet customer needs.
• The Rootstock engineer also creates a Bill of Materials (BOM) for the product showing all parts and quantities.

 

3. Design approval by the customer:

• The client then evaluates and approves the design or provides feedback on changes.
• If the customer approves the design, the Rootstock engineer goes to the fourth step above “Rootstock Manufacturing Process of Engineer to Order” fig. Otherwise, the Rootstock engineer will change the design based on customer feedback.

 

4. Forwarding design to the manufacturing team:

• The Rootstock engineer sends the design to the construction team. The Rootstock manufacturing team creates a product design based on the engineer's bill of materials. This may include the manufacture and supply of custom parts or machines. So bookkeeping is very important in this process.
• The Rootstock manufacturing team also performs automatic production planning for product manufacturing, considering when each part is made and the product assembled.
• Once the design is completed by the design team, it is sent back to the Rootstock engineer for approval.

 

5. Production of the finished product:

• The Rootstock production team releases the product based on the schedule they created in step four above “Rootstock Manufacturing Process of Engineer to Order” fig. This may involve manufacturing parts or machinery, which can be time-consuming and expensive.
• The production team assembles and tests the product to meet specifications.

 

Advantages of Engineer to Order (ETO) in Rootstock ERP

1. Unified Product Design & Management:

Rootstock Engineer for ERP Orders brings configured product design and procurement and manufacturing under one umbrella and team. With product management, ETO developers can manage configured product definitions and the creation of existing products.

• Comprehensive project management for ETO developers to plan, track and pay for each project using Project Control.
• Linking product design, product management and production.
• Project Worksheet for real-time access to actual costs vs. budget comparisons, project listings and more.
• Plan, track and pay for each project using project management.
• For design and R&D, Rootstock works with PLM (like Arena) leader Propel on the Salesforce platform to synchronize new product configuration data.

 

2. End to End Cost Controls:

The Rootstock ETO ERP system gives you the flexibility to create optimal products while maintaining margins and economies of scale. Get cost visibility and control, to help you identify and control costs while eliminating inefficiencies.

• Create accurate estimates using product by product models, materials and methods appropriate for each model.
• Scheduling, inventory, and capacity planning allow you to balance manufacturing and supply centers using a simple drag and drop schedule.
• The advanced ETO MRP system allows you to purchase common parts used in multiple projects, considering the delivery date of each project.

 

3. Personalized Service and Support:

Resolve service issues faster by giving your service teams a complete 360° view of customer information and products and improve the customer experience with your service contracts.

• You can maintain data on customer configurations and provide serial numbers to ensure proper replacement of parts.
• Connect your field operations teams to inventory, RMA, renewal and warehouse repair operations.
• Track customer inventory, purchase orders, invoices, shipments, returns and receipts from one place.

 

Conclusion:

Effective ETO processes require collaboration between engineering and production teams, accurate documentation, and the use of  Rootstock ERP to effectively manage resources and workflows. A method of manufacturing wherein a product is created, engineered, and completed following the receipt of an order. Engineer to Order producers collaborate with customers to develop intricate or specialized products, following their specifications all the way through.

Blueflame Labs are Rootstock partners to help with implementation to elevate your business operations with our Rootstock and Salesforce experts.