The Authority on Software Selection
Talk to a Software Expert: (888) 918-2748
Engineer to Order (ETO) Manufacturing Software
Completing an engineer to order (ETO) project can take from days to decades. While managing an engineering project can be daunting, usually the real challenge is managing the business of engineering. Asking engineers to design widgets is one thing; persuading them to complete the necessary paperwork (or electronic work, as the case may be) is another thing entirely.
Because of the nimble nature of most ETO projects, the ability to create fast and accurate quotes, bids, and responses to requests for quotations (RFQs) is crucial. Converting quotes to orders and bills of material (BOM) is also critical. In order to give accurate quotes, the inventory system, including costs and quantities, must be current. In addition, there must be up-to-date information on vendors and components, with costs and lead times, to support make-versus-buy decisions for subassemblies.
ETO systems generally include manufacturing resource planning (MRP) functions and often directly interface with manufacturing execution systems (MESes). It is important that ETO planning allow for more than 100% utilization of equipment and personnel, for example, for double shifts, weekend, or holiday work. The payroll system must track overtime and compensatory time (comp time) for workers. The accounts receivable system should be able to create bills based on the terms of bids and should be able to process performance-based payments. Customer relationship management (CRM) systems should track historical data and also store the specifics of all winning proposals for failed bids for later analysis.
General ledger and accounts payable are standard. Most ETO manufacturing software installations are on-premises. Software as a service (SaaS) options are available. The attractiveness of a cloud-based alternative is primarily based on the information technology infrastructure already in place in the firm.
Key Requirements for Engineer to Order Manufacturers
In evaluating software, engineer to order manufacturers should consider the following functions to meet their unique requirements:
| Quote to order | The ETO system should support quote creation. The system should use current inventory information and historical data to estimate costs and delivery dates. |
| Bill of materials management | The system should create BOMs directly from orders, even the orders that are generated from quotes. The system should allow revisions to the BOM to provide additional levels of detail. In advanced systems, a conceptual BOM is used as part of the process to develop a quote. |
| Make or buy decision support | Make or buy decision support applies job estimating to subassemblies to evaluate whether it is more profitable to make or buy components. Advanced systems will factor in time to build or buy as well as cost. |
| Conditional order management | The system should be able to place conditional orders with suppliers to inform them which orders are likely on the condition that a particular bid is accepted. |
| Customer relations management | The CRM should track each customer’s historic sales against recent sales to gauge trends. It should track recent RFQs and the winning bids for any opportunity that the firm sought. |
| Accounts receivable | The accounts receivable system should convert the terms from an accepted bid/order into an account receivables entry. It should correctly calculate and post performance-based payments. |
| Cost plus pricing | The system should create cost plus bids if required. It should allow variable markups for components and subassemblies. |
| Overtime management | The estimating system should account for current work in progress when calculating costs, including overtime costs as necessary. Overtime and comp time should be automatically charged against the correct projects. |
| Bonus based on production goals | The system should automatically calculate any performance-based bonuses (or penalties) for the project and for individual employees. Project bonuses and penalties are transferred to accounts receivable and employee bonus information is transferred to payroll. |
| Integration with project management | The ETO system should integrate with the project management system to track overall performance of the project. Any discrepancies between accounting data and project management data should be highlighted. |
| Spare parts management | The ETO system should identify and account for the production or acquisition of any contractually required spare parts. The system should track lead times to decide which parts should be stocked, which should be built to order, and which can be ordered from vendors. |
| Warranty and service contract management | The warranty and service contracts are detailed in the bid and final proposal. The ETO system should track the dates and milestones on the contracts. |
| Estimate confidence level | The system should allow a confidence level to be assigned to each entry in a proposal. The confidence level should be able to either be kept internal or shared with the client as desired. |
| Engineering change management | Tracks engineering changes and their impact on delivery date and profit on the project. It should also be easy to enter the changes into the system so that the changes can flow to other projects and the overall schedule. |
| Failed bidder stipend accounting | If the RFP or bid process allows bidders to receive a stipend for failed proposals, the accounting system should correctly charge the costs of developing the response against the stipend. |
Free Download:
Manufacturing Software Feature Checklist
Free Download:
Ten Steps to Selecting the Right Manufacturing Software
Call us for a free
FastStart Consultation
(888) 918-2748
Save weeks of up-front research and avoid costly mistakes with our free FastStart Consultation.
JOBSCOPE Enterprise Edition
JOBSCOPE was founded in 1980 and is designed for order-driven manufacturing firms involved in the engineer-to-order mode of production. The system has capabilities for real-time job costing, work orders and serial tracking.
Encompix ERP
Encompix, a Consona ERP program, was developed in 1992 to serve project-based manufacturers. The system has features for finite and infinite capacity planning and allows job scheduling by due date or by start date.
Henning Visual EstiTrack ERP
Engineer-to-order manufacturers in segments such as automotive, technology, industrial machinery and metal fabrication are supported by Visual EstiTrack ERP. The system includes features for make to order quotes and more.
Exact JobBOSS
Exact JobBOSS is an excellent solution for contract and project-based manufacturing firms, making it a fit for the engineer-to-order mode. This system offers flexible deployment, offering on-premise and web-based system versions.
E2 Shop System
E2 Shop Tech is an integrated suite of applications that includes customer management, supply chain management and MES. The system can handle small to mid-size engineer-to-order manufacturing companies.
Save weeks of research & costly mistakes. Our experts will recommend the best software for your needs.
ECi M1
ECi M1 can handle light manufacturing modes such as the repetitive mode as well as more complex modes like engineer-to-order. M1 is an on-premise solution that includes applications for MRP, MES, supply chain management and more.
Epicor Manufacturing Express Edition
In addition to supporting modes like make-to-stock and make-to-order, this system offers support for the engineer-to-order mode. The system is an integrated suite that includes supplier management, business intelligence and more.
Epicor Manufacturing
Founded in 1972, Epicor has become one of the biggest names in the ERP software market. The software can handle multiple modes of manufacturing including mixed-mode, repetitive, make-to-order and engineer-to-order.
ERP123
IntegrateIT is built for every mode of manufacturing, from made-to-stock to engineer-to-order. ERP123 allows manufacturers to keep detailed budgets for labor and materials, manage job costing needs and more.
Free Download:
How to Assess Manufacturing Software Vendors' Viability
Free Download:
Manufacturing Software Price Comparison Tool
Call us for a free
FastStart Consultation
(888) 918-2748
Save weeks of up-front research and avoid costly mistakes with our free FastStart Consultation.