make-to-order vs. engineer-to-order

[Former Member]

hello!

can someone discribe the difference between make-to-order and engineer-to-order or does someone know where to get information about the detailed differences.

i have been through sap help, but i am still looking for a brief list of differences ...

best regards,

matthias

[Former Member · Accepted solution]

The main difference is that in ETO you include the design process. MTO you have the design which means you have a defined BoM/ routing and start the process with this once an order is received.

In ETO you start the process with collobaration with the customer starting from BoM design, production process design etc. From SAP point of view PLM module covers this with document management, BoM approval process etc.

Ram

[Former Member]

it is simply

MTO is already design is ready and with in that variant they will build the product

ETO - nothing is ready every thing company willstart producing from first i.e from ENgg drawing thye will start the product...they donot know the perfect spec of the product initially. it is not the case ion MTO

[Former Member]

Hi

Mainly in the MTO scenario requirements are coming from the sales order and you can run the MRP against that sales order for the perticular line item(MD50)then what ever the material you will procures/Manufactures are reserved against that sales order, you can run the MRP for material level or plant level aslo

In ETO scenario first project will be created, in the project their is WBS and network.

BOM will be created in normal transaction CS01 after complition of product design, then that bom is transfered to perticular project.The BOM some components are attached to WBS and some are in network.

MRP run at project(MD51) level then only the material which attached to WBS are planned, then the items which are attached to network are planned when MRP run done at plant level or material.

The component which attached to WBS are reserved against the project stock,the components which are attached to network are plant stock

[Former Member]

thanks for your answers!

i am summarizing your information - are my assumtions below correct?

engineer to order

- calculation/quotation from wbs/project (only with easy cost planning possible)

- requirements transfer out of wbs/network

- delivery out of wbs/activity

make to order

- calculation/quotation from quotation (VA21) with unit costing (CO-PC) possible

- requirements transfer from sales order possible (out of order bom)

- delivery following sales order

best regards,

matthias