The Changes in Perspective & Hurdles that hit the ETO to CTO Transition
Manufacturing companies are often caught up in the process of deciding which production model is better suited to realize their overall goals and projections. Two widely applied approaches adopted by manufacturing industries are ETO (Engineering to Order) and CTO (Configure to Order).
In ETO, a product is worked on only after an order for it has been received. This ensures customer expectations are met in line with the specification they provide while ordering. ETO is ideally suited to manufacturers of highly configurable products and often demands close customer engagement throughout the design and manufacturing phases.
CTO is based on the design choices at the time of order, with the design selection made after receiving the order. It utilizes customer requirements from a specific set of product features with predefined values, to select a combination of parts and assemblies to make a specific pre-defined, pre-engineered, pre-validated variant of a product.
In order to meet customer-specific needs, lower costs, and reduce runtime, some companies have opted to change from ETO to CTO. However, this process is not short of challenges; currently, there is a significant shift in perspective relating to industrial production. Read on to know more about the challenges and viable solutions.
- Design and Implementation Challenges
One of the most significant challenges in ETO to CTO transition relates to the changes in the implementation approach used. Every company adopts a specific production model, and as such, they understand well their own benefits and challenges. However, designing for the transition requires a switch in the way of thinking that can be difficult to make. To counter this, it is essential to share experiences with others in similar markets in the industry so that it is possible to see differing approaches towards solving similar problems. Sharing knowledge within the sector widens the scope of thinking and can ultimately lead to sustainable solutions that will ease the process of ETO to CTO transition. A broader, design-based mindset can help boost production and create success for the manufacturers. - Adaptability Challenges
It is critical to realize that what works for one company may however not necessarily work for another, and this is true even when choosing the production models; whether ETO or CTO. Technical managers and engineers, therefore, need to be well versed in what goes into maintaining consistent quality production. They should try to learn how other industries operate, even outside of their sector, and be flexible enough to accommodate any changes that need to be introduced. This can help to tackle the challenge of adaptability that may be experienced when transitioning from ETO to CTO. - Configuration Problems
Technological advancement is a factor that affects every facet of life, including the manufacturing industry. As a result, it is critical for industries to align themselves with the current strategies and technologies to ensure sustainable growth and enhance production. If the CTO model proves to be an acceptable way forward, it makes sense to bring more evolved and experienced partner engineers on board. Their role is to provide insight and help with configuration challenges that may arise during the transition process. To prevent mistakes, it is always advisable to configure products one line after the other without rushing because ETO to CTO transition cannot be fully realized in just a few days. - Employee Resistance
A well-qualified workforce is essential to ensuring that your products are at least competitive, if not the best in the market. It is necessary to tap into the knowledge and skills of your engineers and technical staff regarding the production model to use. Actively engaging with them will provide a platform to openly bring out their ideas as far as transitioning from ETO to CTO is concerned. This approach can go a long way to reducing employee resistance as they will feel more involved and part of the process, not to mention possibly coming up with more workable solutions. It is also essential to try and involve the sales teams, partners, and customers to prevent making configurations and compositions too complicated or too technical for them.
Finally, with the ever-changing dynamics of the manufacturing industry, people are now reasoning differently to be able to seize the opportunities available. Whether adopting the ETO or CTO models, the main objective is to improve quality and boost productivity. Everyone does their best to stand out, ensuring customer satisfaction and retention.
