Traditional Engineer to Order (ETO) involves re-engineering every order, particularly in today’s custom-driven marketplace. Configure to Order (CTO) assembles orders from existing building blocks that can be delivered from stock. If your organization is facing issues around complexity, cost, and time with Engineer to Order approaches, moving to Configure to Order processes can deliver significant benefits.
From customization to Configure to Order
Many companies in the manufacturing industry still work according to Engineer to Order (ETO), in which every product, part or machine is specified, developed, and produced on order.
What does this mean in practice? Making offers takes a long time, development costs a lot of money, and delivery times often are delayed. While the demand for complex customization is increasing, your customers want to receive tenders faster, and the cost price is under pressure more than ever. You can handle these challenges efficiently and intelligently with Configure to Order (CTO).
Configure to Order: build with lego
Configure to Order (CTO) compiles every order from existing blocks—it’s a modular approach, like building with legos. When you configure an order in a product configurator, there is hardly any engineering involved. You can use the configurator across the full quote to delivery process, ensuring fast offers, reduced errors, and accurate delivery times.
Configure to Order: customer-specific solutions standardized
Configure to Order (CTO) does not limit your offerings. Standardizing (legoizing) all dimensions and building blocks gives you enormous possibilities for variation. You can vary within standardized building blocks such as hardware, software, and electronics. You can also vary within operational building blocks such as production systems and resources. Customers still get customer-specific solutions, but the road to them is standardized.
Benefits of Configure to Order
Better quality products
When processes are repeated over and over, they are much easier to optimize, which leads to an optimal end product.
Repetition of processes also means more routine in execution. Potential errors are prevented and production goes faster.
Shorter time to market
With Configure to Order, processes can run parallel to each other, eliminating wait times.
The time you save with Configure to Order can be used to optimize existing processes and new developments.
Going through an order process that largely consists of standardized, optimized processes is of course cheaper than developing a new process that is only used once.
Want to learn more? There’s an example model for configuring a door in the movie below!