Engineer-to-order Research Articles

Supporting the Modelling and Managing of Relations in the Design Platform

AbstractA common strategy which has in many cases become a necessity in product developing companies is to apply platform thinking to some extent. Engineer-to-order (ETO) companies are firms that need to invest in a significant amount engineering time in each product ordered by customers. These companies have in the past been known to not be fully able to apply platform strategies. An area of concern to product development is the design and manufacture of machine tools aimed for part manufacturing which is a large investment and a critical bottle neck. As a response to these challenges the design platform (DP) concept was developed which is founded on the re-use of company assets. This paper aims to investigate the application of the DP in a company designing and producing unique high-pressure die casting tools for different applications and customers. To enable companies of this character to utilize platform thinking to a higher degree and thus increase the efficiency in product development, a focus is set on modelling and managing relations within the DP. In addition, a PDM system setup is proposed together with an integrated support application for the realisation in industry.

Layered discrete event system specification for a ship production scheduling model

Shipbuilding is a representative engineering-to-order (ETO) industry that commences product design and manufacturing only after contract signing. It is difficult to accurately predict production schedule at the contract stage, and is this is extremely important because the design tends to be unique and the delivery date should be included in the contract given the paucity of information of the product. Although the intermediate products exhibit high similarity, design modification typically occurs even after the production has begun, and this increases the difficulty of accurate planning. Additionally, the production process incorporates labor-intensive assemblies and joining, and it inherently involves the uncertainties in process time and procedures. Thus, shipbuilding companies attempt to manage production plans via dividing them into hierarchical structures and tend to rely on empirical knowledge and data from production history. Recently, discrete event simulation (DES) is actively searched for the shipyard schedule management, which is successfully applied to mass production industries. However, it is not widely applied due to the inherent characteristics of shipbuilding industry. In order to solve the problem, we propose a layered discrete event system specification modeling method for a ship production scheduling system that provides a layer concept for mixed level of information. The aim involves integrating all production information. Each layer exhibits a level of usable information details. Furthermore, it is designed to facilitate cross-linked information between different layers. Thus, we define a mathematical formalism as an extended form of discrete event system specification and apply it to a production schedule model. The model is simpler and easier to implement because it reflects characteristics of shipbuilding production.

Integrated Multi-Project Scheduling and Hierarchical Workforce Allocation in the ETO Assembly Process

The engineer-to-order (ETO) production strategy plays an important role in today’s manufacturing industry. This paper studies integrated multi-project scheduling and hierarchical workforce allocation in the assembly process of ETO products. The multi-project scheduling problem involves the scheduling of tasks of different projects under many constraints, and the workforce allocation problem involves assigning hierarchical workers to each task. These two problems are interrelated. The task duration depends on the number of hierarchical workers assigned to the task. We developed a mathematical model to represent the problem. In order to solve this issue with the minimization of the makespan as the objective, we propose a hybrid algorithm combining particle swarm optimization (PSO) and Tabu search (TS). The improved PSO is designed as the global search process and the Tabu search is introduced to improve the local searching ability. The proposed algorithm is tested on different scales of benchmark instances and a case that uses industrial data from a collaborating steam turbine company. The results show that the solution quality of the hybrid algorithm outperforms the other three algorithms proposed in the literature and the experienced project manager.

Applying kaizen to the schedule in a concurrent environment

Not only ETO (Engineering to Order), but even serial production industry should know how to deal with projects and their schedule: plant commissioning, shutdown, introducing new products and similar circumstances should be managed with adequate planning and resource allocation techniques to create a schedule useful in decision making during the execution. The current complex reality, with evolving technologies and fierce pressure to reach the market as soon as possible, pushes the project managers to use more advanced techniques than waterfall planning, such as agile or lean. It also requires them to take a holistic view and manage concurrent tasks in complex projects. The contributions of this paper are two: the proposal to control specific parallel groups of waterfall activities under uncertain environments, which can lead to iterations and reworks, as a single concurrent Activity Managed by Kanban Methods (AMKM). This activity can be subsequently embedded into traditional scheduling approaches as CPM-PERT. The second contribution is the feasibility of its application in industrial environments due to the affordability of simulation software. Two use cases are shown as evidence. It is not a disruptive proposal, but a kaizen action based on very mature technologies. Finally, it is suggested some improvements to be implemented in Project Management Software due to this ‘kaizen’ proposal.

Assessing value of customer involvement in engineered-to-order shipbuilding projects using fuzzy set and rough set theories

Customer involvement plays a crucial role in engineered-to-order (ETO) projects. The present study investigates the involvement of customers, with thorough technical knowledge, as resources and co-producers. The study also analyses the impact of customer involvement in sourcing decisions and project execution on project performance (PP) of ETO shipbuilding projects by considering project and customer characteristics. The contributions of this study to the current body of knowledge on customer involvement in ETO projects are twofold. First, it demonstrates that customer involvement at different stages of shipbuilding projects have differential impacts on PP. Customer involvement in sourcing decisions during the early stages of the project has a positive impact, whereas involvement in project execution during the later stages of the project has a negative impact on PP. Second, it reveals that project complexity and customer type together significantly affect the PP. Therefore, the role of project complexity and customer type as potential contingent factors in explaining PP is emphasised. This study also makes a significant methodological contribution by demonstrating the use of fuzzy inference system and rough set theory to analyse qualitative inputs from interviews, when conducting surveys is not possible.

Application of vendor rationalization strategy for manufacturing cycle time reduction in engineer to order (ETO) environment

PurposeThe purpose of this paper is to demonstrate the application of vendor rationalization strategy for streamlining the supplies and manufacturing cycle time reduction in an Indian engineer-to-order (ETO) company. ETO firms are known for a large number of vendors, co-ordination hassles, rework problems and its impact on cycle time and operational excellence.Design/methodology/approachThe research demonstrates the case-based application of Kraljic’s matrix for supply and leverages items, on-the-job observations, field visits, discussions and analysis of supplies reports.FindingsThe study guides on the rationalization of supplies and the necessary strategic alignments that can significantly reduce supply risk, costs, manufacturing and delivery cycle time along with co-ordination hassles. The study depicts the challenges of ETO environment with respect to supplies, and demonstrates the effectiveness of vendor rationalization application for the case company and weaknesses of commonly practiced vendor management approaches.Practical implicationsTo be competitive, companies should rationalize supply items and vendors based on the nature of items and their subsequent usage by applying Kraljic’s matrix-based classification. The immediate implication of vendor rationalization is misunderstood as reducing supply base, but it does much more and includes review of supplies, nature of items and strategic alignments, leading to win-win situation for company and suppliers.Originality/valueFor the rationalization of supplies, while procuring and dealing with vendors, executives should envisage engineering nature of components, considering cross-functional requirements and integration of components in context to ETO products/projects environments. There is a dearth of studies focusing on vendor rationalization aspects in ETO setups in fast-developing country context.

A hybrid algorithm of product-service framework for the multi-project scheduling in ETO assembly process

The engineer-to-order (ETO) production strategy plays an important role in today’s manufacturing industry. This paper studies the multi-project scheduling in assembly process of ETO products. The multi-project scheduling problem is to schedule tasks of different projects under many constraints and assign hierarchical workers to each task. We develop a mathematical model to represent the problem. In order to solve with the minimization of makespan as the objective, we propose a hybrid algorithm combining particle swarm optimization (PSO) and Tabu search (TS). The improved PSO is designed as the global search process and the Tabu search is introduced to improve the local searching ability. The proposed algorithm is tested on different scale benchmark instances and the case that uses industrial data from a collaborating steam turbine company. The results show that the solution quality of the hybrid algorithm outperforms the other three algorithms proposed in the literature and the experienced project manager.

Development and application of model of configuration for order-engineered enterprise resource

The paper builds a model of enterprise resource optimisation configuration for the product which is Engineering to Order (ETO). Firstly, it decomposes the product into several parts in different custom depth at the design stage, then uses the different enterprise surplus resources to achieve the production for different kinds of parts and components production based on the cost and time constraints. This model can reduce the cost of production and improve the competitiveness of the enterprises. Finally, the paper proves the superiority of the enterprise resources optimisation allocation model by an example of a customised special machine tool.

Coordination-based reactive resource-constrained project scheduling

Due to the increasing use of prefabricated building blocks in construction projects, on-site storages with limited space need to be utilized more efficiently to start the construction activities relating to the blocks on time. Especially when the construction schedule is disrupted by an unexpected event, it needs to be revised by coordinating the delivery times of prefabricated blocks from suppliers, subject to the limited storage space, for minimizing the impact on the project duration. In this paper, a coordination-based reactive scheduling procedure is proposed for a reactive multimode resource-constrained project scheduling problem with limited on-site storage space and its effectiveness is validated through computational experiments. The authors expect that the proposed procedure is also applicable to engineer-to-order (ETO) and make-to-order (MTO) manufacturing systems with limited on-site storage space for raw materials.

Reconciling engineer-to-order uncertainty by supporting front-end decision-making

This paper presents the dynamics of engineer-to-order (ETO) practice through Integration Definition for Function Modelling (IDEF) practice. The paper describes and defines how an ETO manufacturer utilised IDEF-QA in order to manage project uncertainties within the tendering process. The research is conceptualised through an empirical action research approach, involving an active role in the assessment of the ETO process. The paper revisits the use of IDEF, showcasing an assessment of output quality. It also suggests a road map for resource uncertainty within ETO, specifically when scoping the supply chain for ETO projects. The paper then presents an IDEF Quality Assessment model for improving the tendering process of ETO, and it examines the importance of evaluating project behaviour for supporting new future projects. The principal contribution is in how a structured approach provides IDEF with a quality assessment of resources, thereby consolidating and establishing a relationship for highlighting the uncertainties experienced by ETO manufacturers within the decision-making process.

Site logistics planning and control for engineer-to-order prefabricated building systems using BIM 4D modeling

Abstract There has been a growing demand for engineer-to-order (ETO) prefabricated building systems, in which a unique product must fulfill the requirements of specific clients. Although industrialized building systems can potentially simplify the production process, there is usually a high level of complexity in ETO production systems, such as uncertainty in client demands, short lead-time, overlapping between project stages, and resources that are shared among different projects. In this context, logistics management plays a key role in terms of achieving project goals related to cost, time and safety. This research work proposes the combined use of principles from the Lean Production Philosophy and Building Information Modeling (BIM), as a mechanism to cope with the complexity involved in those types of projects. Although these can be regarded as two separate approaches for improving the performance of production systems in the construction industry, there are evidences that there is much synergy between them. This paper reports the development of a logistics planning and control model for site assembly of ETO prefabricated building systems using BIM 4D modeling. The main theoretical contribution of this research work is the understanding of the synergies between Lean principles and BIM functionalities that are applicable to site logistics management, providing an example of how this body of knowledge can be expanded. This investigation also provides some practical contributions on how to carry out logistics planning and control at different hierarchical levels, with the support of BIM 4D modeling, aligning this process with the Last Planner System of production control. Design science research was the methodological approach adopted in this investigation, and the proposed model was developed and tested in empirical studies carried out in a steel fabricator company that designs, fabricates and assemblies steel structures.

Assessing the impact of performance determinants in complex MTO/ETO supply chains through an extended hybrid modelling approach

In make-to-order (MTO)/engineer-to-order (ETO) business environments multiple customer-oriented projects compete for and share resources through interdependent engineering and production activities. Deep knowledge of critical dimensions that affect performance is key in this context. For this, we propose a set of determinants – workload, complexity, outsourcing, design reuse, project type, and knowledge/experience with technology, that impact performance. These determinants are input to an extended hybrid simulation model using system dynamics (SD), discrete event simulation (DES) and agent-based simulation (ABS) that tackles the needs imposed by activities of very different nature, as the project development and manufacturing/assembly operations. The hybrid model is applied to the case of an advanced manufacturing company. Through Monte Carlo sampling, the influence of different combinations of determinants in the performance variability is assessed. A correlation analysis shows evidence of association between all performance determinants and the project time and cost, while no evidence of association between the design reuse and project type determinants and the manufacturing and assembly time.

Industry 4.0 Fostering Construction Supply Chain Management: Lessons Learned From Engineer-to-Order Suppliers

Industry 4.0 will certainly transform the manufacturing industry but it will also have an impact on the construction industry and its connected supply chains. However, construction faces different problems than manufacturing. Often construction projects are highly customized, containing a significant numbers of engineer-to-order (ETO) components. ETO construction supplier companies consistently consist of off-site and on-site production elements. On-site construction processes are prone to high variability and unpredictability. This uncertainty makes supply chain synchronization for maintaining construction progress difficult. As a result, construction supply chains are characterized by high levels of intermediate buffers and long lead-times. We propose a variety of Industry 4.0 concepts to ameliorate these problems. Initial applications are identified from previous works. Additionally, we present some case studies for some lessons learned from the collaboration with ETO-companies. Seven action points in various applications of Industry 4.0 in the construction supply chain provide a guide to managers.

Lean manufacturing tool in engineer-to-order environment: Project cost deployment

The present paper proposes a modified version of the Manufacturing cost deployment (MCD) method to analyse engineer-to-order (ETO) production systems. The novel approach, named Project cost deployment (PCD), introduces two substantial and innovative modifications. To begin with, the concept of manual assembly macro-activity replaces the traditional concept of station. Then, a brand-new structure for classifying and analysing losses is introduced, that is specifically defined to deal with the inefficiencies of the manual assembly tasks. The validity of the approach is proved by a real-world industrial application. The obtained results demonstrate that the PCD method allows the analyst to identify the hidden losses and to quantify the wastes from an economical point of view. In addition, PCD permits to estimate the impacts of potential (lean) improvement activities and projects in terms of both efficiency and effectiveness.

Implementing Quick Response Manufacturing to Improve Delivery Performance in an ETO Company

As the pressure is increasing to compete with others to get customer orders in the global market, companies are struggling to build up competitive advantages that are hard to imitate. The trend shows more and more customers demand faster product delivery in the last decade. The Quick Response Manufacturing (QRM) approach provides significant benefits to engineer-to-order (ETO) companies through its focus on lead time reduction. A precision parts manufacturer was selected as case study to what extent QRM is a suitable solution to improve the delivery performance. This paper describes the implementation of the QRM concepts and illustrates how they were deciphered into practices that streamline the process across the organization. The study measures the effectiveness of the QRM framework through its ability to achieve better performance through concurrently reducing manufacturing critical-path time, lowering capacity utilization level and increasing throughput.

Understanding the impact of non-standard customisations in an engineer-to-order context: A case study

Companies operating with an engineer-to-order (ETO) manufacturing strategy produce customised solutions for their customers. While they may be able to build on a base of existing sub-solutions, e.g. standard product structures, modules or parts when engineering a customer-specific solution, they often have to create something completely new to satisfy customers’ requirements. However, it is not always clear to ETO companies what the costs associated with making customer specific solutions are, or which product or project characteristics drive costs and in what business processes. Therefore, it is not clear to companies if it is actually profitable for them to fulfil all of their customers’ requirements. Hence, making it relevant to understand how creating non-standard customisations impact project profitability. This paper presents a framework for how ETO companies can quantify the impact of the complexity associated with non-standard customisations when cost data is only available at the project level. The framework is theoretically founded; it is based on statistical regression and a definition of a complexity index for non-standard customisations. The framework is validated in the context of an ETO case company and empirical data is presented.

A model-based simulation approach to support the product configuration and optimization of gas turbine ducts

Nowadays, product configuration and optimization are very important topics in several industrial applications such as the manufacturing of Engineered-to-order (ETO) products, where there is a fierc...

Planning and controlling design in engineered-to-order prefabricated building systems

PurposeThe purpose of this paper is to propose a model for planning and controlling the design process in companies that design, manufacture and assemble prefabricated engineer-to-order (ETO) building systems. This model was devised as an adaptation of the Last Planner® System for ETO multiple-project environments.Design/methodology/approachDesign science research, also known as prescriptive research, was the methodological approach adopted in this research. An empirical study was carried out at the design department of a leading steel fabricator from Brazil, in which the proposed model was implemented in six different design teams.FindingsThe main benefits of the proposed model were shielding design work from variability, encouraging collaborative planning, creating opportunities for learning, increasing process transparency, and flexibility according to project status. Two main factors affected the effectiveness of the implementation process commitment and leadership of design managers, and training on design management and project planning and control core concepts and practices.Research limitations/implicationsSome limitations were identified in the implementation process: similarly to some previous studies (Ballard, 2002; Codinhoto and Formoso, 2005), the success of constraint analysis was still limited; some of the metrics produced (e.g. ABI, causes of planning failures) have not been fully used for process improvement; and systematic feedback about project status was not properly implemented and tested.Originality/valueThe main contributions of this study in relation to traditional design planning and control practices are related to the use of two levels of look-ahead planning, the introduction of a decoupling point between conceptual and detail design, the proposition of new metrics for the Last Planner® System, and understanding the potential role of visual management to support planning and control.

A Lean Approach for Real-Time Planning and Monitoring in Engineer-to-Order Construction Projects

Engineer-to-order (ETO) construction companies are characterized by an off-site and on-site production. Often, budget deviations for installation works on-site are identified in a late stage when improvement actions cannot be applied anymore. Consequently, installation tasks are often affected by significant delays and/or reworks. This work proposes a “real-time” capable approach for planning and monitoring in construction and a corresponding information technology (IT) framework. The core is represented by the so-called “pitching” concept known from lean management, which breaks down large job orders into smaller controllable parts. It can be considered as the main enabler for gathering management information in real-time and to identify problems and their causes on time. The most noticeable consequence lies in smaller jobs and a software-aided punctual control that allows a better rescheduling capability and, thus reduced, delays. A case study is provided, showing how the model was applied and validated in an ETO façade supplier company.

BIM semantics for digital fabrication: A knowledge-based approach

Abstract This research investigates how a Knowledge-Based approach to developing BIM objects of Engineered-To-Order (ETO) components could facilitate the workflow between designers and fabricators. The work reported in this paper represents the findings of a 16 month action research project undertaken with an ETO woodwork component fabrication company with both conventional and Computer Numerically Controlled (CNC) machining capabilities. The goal of this paper is to demonstrate a way for how BIM objects could first be embedded with fabrication semantics, and then used to support the workflow between designers and fabricators, specifically where CNC machines are used. To demonstrate the idea, the methodology is outlined in the context of a developed BIM object for a base cabinet from the domain of custom cabinetry. The BIM object was validated by fabricating the actual component via a simulated workflow between design and fabrication disciplines in a real setting. The main contribution is that the research clarifies some of the ambiguity relating to BIM and CNC technologies working in tandem. The discussed results explain the benefits and challenges observed through the use of this method as well as provide avenues for further investigation.