IJBTT

Engineer to Order Approaches in SAP
	© 2022 by IJCTT Journal
	Volume-70 Issue-5
	Year of Publication : 2022
	Authors : Narasimha Prasad Bhat
	DOI :  10.14445/22312803/IJCTT-V70I5P101

How to Cite?

Narasimha Prasad Bhat, "Engineer to Order Approaches in SAP," International Journal of Computer Trends and Technology, vol. 70, no. 5, pp. 1-6, 2022. Crossref, https://doi.org/10.14445/22312803/IJCTT-V70I5P101

Abstract
This paper discusses the possible approaches for designing Engineer to Order (ETO) supply chain scenarios in SAP. SAP is one of the key global ERP vendors and has embedded manufacturing strategies in its product. Some of the most common supply chain strategies included in SAP are Make-to-Order, Make-to-Stock, Assembled-to-order, and Configure-toorder. Heavy engineering/design-based Industries follow the Engineer Order manufacturing strategy to meet customer requirements, usually unique and heavy design-oriented. The ETO scenario is very complicated compared to other manufacturing scenarios as this involves the Design phase, which involves customization, it includes NPDI -New Product development and Introduction, it needs to support advance procurement of long-lead components while the design is under progress, it needs features for forecasting the cost even before the firm sales order is placed by the customer. This paper analyzes key requirements for an ETO scenario and available SAP solutions and then recommends the appropriate ETO approach.

Keywords
Engineer-to-Order, ETO, Supply chain, SCM, SAP, ERP, Make-to-Order, Manufacturing strategies.

Reference

[1] Barlow J, From Craft Production to Mass Customization, Innovation Requirements for the UK Housebuilding Industry, Housing Studies 14(1) 1999 23–42.
[2] Elfving, J.A, Tommelein I.D, Ballard G, Consequences of Competitive Bidding in Project-Based Production, Journal of Purchasing and Supply Management. 11(4) (2005) 173–181.
[3] Hamari A.P, Project Management in a Long-Term and Global One-of-a-Kind Project, International Journal of Project Management.15(3) (1997) 151–157.
[4] Hicks C, McGovern T, Earl C.F, Supply Chain Management: A Strategic Issue in Engineer to Order Manufacturing, International Journal of Production Economics. 65(2) (2000) 179–190.
[5] Jonathan Gosling, Mohamed M. Naim, Engineer-to-Order Supply Chain Management: A Literature Review and Research Agenda, International Journal of Production Economics. 122(2) (2009) 741-754. https://doi.org/10.1016/j.ijpe.2009.07.002.
[6] Amaro G, Hendry L, Kingsman B, Competitive Advantage, Customization and a New Taxonomy for Non-Make-to-Stock Companies, International Journal of Operations & Production Management. 19(4) (1999) 349–371.
[7] Porter K, Little D, Peck M, Rollins R, Manufacturing Classifications: Relationships with Production Control Systems, Integrated Manufacturing Systems. 10(4) (1999) 189–199.
[8] Rudberg M, Wikner J, Mass Customization in Terms of the Customer Order Decoupling Point, Production Planning & Control. 15(4)(2004) 445–458.
[9] Wikner J, Rudberg M, Integrating Production and Engineering Perspectives on the Customer Order Decoupling Point, International Journal of Operations & Production Management. 25(7–8) (2005) 623–641.
[10] SAP Variant Configuration for Customization Needs of ETO. [Online]. Available: https://help.sap.com/docs/SAP_ERP_SPV/61155ee7ed304ae8b66b7526555a6a07/1a40b953495bb44ce10000000a174cb4.html?version=6.18.11
[11] Forza C, Salvador F, Managing for Variety in the Order Acquisition and Fulfillment Process: The Contribution of Product Configuration Systems. 76(1) (2002) 87–98.
[12] Amaro G, Hendry L, Kingsman B, Competitive Advantage, Customization, and a New Taxonomy for Non-Make-to-Stock Companies, International Journal of Operations & Production Management. 19(4) (1999) 349–371.
[13] Hoekstra S, Romme J, Integral Logistics Structures: Developing Customer Oriented Goods Flow, McGraw-Hill, London. (1992).
[14] Naylor J.B, Naim M.M, Berry D, Liability: Integrating the Lean and Agile Manufacturing Paradigms in the Total Supply Chain, International Journal of Production Economics. 62(1,2) (1999) 107–118.
[15] Yang B, Burns N, Implications of Postponement for the Supply Chain, International Journal of Production Research. 41(9)(2003)2075–2090.
[16] Olhager J, Strategic Positioning of the Order Penetration Point, International Journal of Production Economics. 85(3)(2003) 319–329.
[17] Lampel J, Mintzberg H, Customizing Customization, Sloan Management Review. 38(1) (1996) 21–30.
[18] Bozarth C, Chapman S, A Contingency View of Time-Based Competition for Manufacturers, International Journal of Operations & Production Management. 16(6) (1996) 56–67.
[19] Rahman A, Rahim A, Shariff M, Baksh N, The Need for a New Product Development Framework for Engineer-to-Order Products, European Journal of Innovation Management. 6(3) (2003) 182–196.
[20] Wadhwa S, Boon K.S, Chan F.T.S, Postponement Strategies through Business Process Redesign in Automotive Manufacturing:Knowledge Innovation, Industrial Management & Data Systems. 106 (2006) 307–326.
[21] Preliminary Costing of ETO. [Online]. Available: https://blogs.sap.com/2017/09/27/quote-costs-in-engineer-to-order-scenarios-withgreater-speed-accuracy-and-insight/ accuracy-and-insight/
[22] SAP ETO. [Online]. Available:https://en.wikipedia.org/wiki/Engineer_to_order