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M3

Make-To-Engineering-Order

The collection of processes associated with producing products and services for Engineer-to-Order projects. The purpose of Make-To-Engineering-Order is to manufacture, assemble or produce custom products based on actual customer orders engineered to customer specification.

Engineered to customer specification implies that the customer provided requirements regarding the product and/or the service delivered meet requirements provided by Customer to Seller during the Quotation or Ordering process. These requirements may result in the need to develop ("engineer") order-specific Bills-Of-Materials/recipes, routings and/or work instructions.

Make-To-Engineering-Order is the M process that facilitates the ETO supply chain strategy.

Use Cases

  • Custom engineered products
  • Custom construction
  • Industrial projects
  • In the software industry: Custom software development

Make-To-Engineering-Order processes are generally the most resource intensive version of the M processes and are therefore not a good fit for low margin products.

Notes

Make-To-Engineering-Order and M2 may both require order specific item numbers, Bill-Of-Materials, routing and/or work instructions. For M2 are typically rule-based and engineered in advance of receiving the order. For Make-To-Engineering-Order some or all need to be engineered after receiving the order as the Customer (Order) provides the specifications. Order Cycle Time Make Cycle Time Perfect Order Ratio Orders Damage Free Ratio Orders Defect Free Ratio Supply Chain Costs Cost Of Goods Sold Cash Conversion Cycle Days Of Inventory Engineer-to-Order Bill Of Materials Plan-to-Product

Hierarchy

IDNameLevelx
MMake1M
M3Make-To-Engineering-Order2M3
M301Create Project Order3M301
M302Complete Order Engineering3M302
M303Schedule Resources3M303
M304Issue Resources3M304
M305Produce3M305
M306Inspect3M306
M307Package3M307
M308Dispose3M308
M309Transfer3M309

Metric(s)

IDNameLevelx
DP1Perfect Order Ratio1DP1
DP11Orders Damage Free Ratio2DP11
DP12Orders Defect Free Ratio2DP12
RS1Order Cycle Time1RS1
RS13Make Cycle Time2RS13
CO1Supply Chain Costs1CO1
CO11Cost of Goods Sold2CO11
AE1Cash Conversion Cycle1AE1
AE12Days of Inventory2AE12

Term(s)

IDNameClearx
BOMBill of MaterialsBOM
ETOEngineer-to-OrderETO
P2PPlan-to-ProductP2P

Workflow

FromInput(s)
Process
Output(s)To
wf_processwf_arrow
S2Sales Order Stock
S3Sales Order Stock
M1Subassembly
M2Subassembly
M3Subassembly
M3
wf_arrowwf_process
Sales Order StockD3
SubassemblyM3
Make-To-Engineering-Order Make 330000 2 {{{keywords}}} {{{description}}}