Make to Order / Engineer to Order Companies
Dr Chris Hicks, Department of MMM Engineering,
Stephenson Building, University of Newcastle upon Tyne, Newcastle NE1 7RU.
Many of the manufacturing companies in the North East of England are
make, or engineer to order suppliers of capital goods. Research has been
conducted with a group of companies whose main business activities include
the design, manufacture and construction of capital equipment, such as
turbine generators, boilers and switch gear for the power industry or oil
rigs for the offshore industry.
Individual products are usually highly customised to meet individual
customer requirements and are produced in very low volumes. Engineer
to order (ETO) supply involves a non-physical stage that include activities
such as engineering design and process planning, and a physical stage that
concerns component manufacturing, assembly and installation. There are
normally two stages of interaction between ETO/MTO suppliers and their
customers and suppliers.
Some companies manufacture a number of product families such as main product,
spares and subcontract items using the same manufacturing facilities. The
major products have deep and complex product structures with many levels
of assembly. Components are manufactured using a range of jobbing, batch,
flow and assembly processes. Final construction and commissioning of the
main products often takes place at customers' sites. Price and delivery
performance are generally the main order winning criteria. Product quality
and features are generally order qualifiers. The spares and subcontract
items mainly have shallow product structures.
a tendering activity in response to an invitation to tender for a
particular contract. This involves the non-physical activities including
the preliminary development of the conceptual design and the definition
of major components and systems.
contract execution, that includes non-physical activities such as the development
of the overall project plan and detailed design. This is followed by procurement,
component manufacturing, assembly, construction and commissioning.
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© Dr Christian Hicks, Department of Mechanical, Materials
and Manufacturing Engineering, University of Newcastle upon Tyne