Abstract
During the past few years, many companies are playing in their respective market managing one batch of their commercial offer as mass customizer and another as a pure Engineer-to-Order (ETO) company. This newly created business model generates new needs and issues both in the internal organization approaches, and in the supporting IT systems. The competitive advantage of successful firms relies on the effective management of their purely customized orders, with the aim of including relevant knowledge and information in the standard space of action. Therefore, this study aims at conceptualizing this new business reality, presenting an innovative underlying scheme for the ETO enabling process in which the central focus is on the design phase. Furthermore, a set of success practices are represented, discriminated between long and short term horizons. In this context, both technological and organizational aspects have been explored. Lastly, applicability of the proposed framework has been empirically validated through case studies.
References
Wikner, J., Rudberg, M.: Integrating production and engineering perspectives on the customer order decoupling point. Int. J. Oper. Prod. Manag. 25(7), 623–641 (2005)
Pandit, A., Zhu, Y.: An ontology-based approach to support decision-making for the design of ETO (Engineer-To-Order) products. Autom. Constr. 16(6), 759–770 (2007)
Schönsleben, P.: Integral logistics management—operations and supply chain management within and across companies. Taylor & Francis, Auerbach Publications, Boca Raton (2011)
Kumar, S., Wellbrock, J.: Improved new product development through enhanced design architecture for engineer-to-order companies. Int. J. Prod. Res. 47(15), 4235–4254 (2009)
Duchi, A., Maghazei, O., Sili, D., Bassan, M., Schönsleben, P.: Advances in Production Management Systems: Innovative Production Management Towards Sustainable Growth: IFIP WG 5.7 International Conference, APMS 2015, Tokyo, Japan, September 7–9, 2015, Proceedings, Part II, S. Umeda, M. Nakano, H. Mizuyama, H. Hibino, D. Kiritsis, and G. von Cieminski, (Eds). Cham: Springer International Publishing, 223–231 (2015)
Piller, F.T.: Mass customization: reflections on the state of the concept. Int. J. Flex. Manuf. Syst. 16(4), 313–334 (2004)
Zhang, L.L.: Product configuration: a review of the state-of-the-art and future research. Int. J. Prod. Res. 52(21), 6381–6398 (2014)
Salvador, F., Forza, C.: Configuring products to address the customization-responsiveness squeeze: a survey of management issues and opportunities. Int. J. Prod. Econ. 91(3), 273–291 (2004)
Willner, O., Powell, D., Duchi, A., Schönsleben, P.: Globally distributed engineering processes: making the distinction between engineer-to-order and make-to-order. Procedia CIRP 17, 663–668 (2014)
Haug, A., Ladeby, K., Edwards, K.: From engineer-to-order to mass customization. Manag. Res. News 32(7), 633–644 (2009)
Pine, I.B.J.: Mass customization: the new frontier in business competition. Harvard Business Press, Boston (1999)
Wortmann, J.C.: A classification scheme for master production schedule. In: Berg, C., French, D., Wilson, B. (eds.) Efficiency of manufacturing systems, vol. 11. Plenum Press, New York (1983)
Hadzic, T., Subbarayan, S., Jensen, R.M., Andersen, H.R.: Fast backtrack-free product configuration using a precompiled solution space representation. In: PETO, pp. 131–138 (2004)
Schönsleben, P.: Methods and tools that support a fast and efficient design-to-order process for parameterized product families. CIRP Ann. Manuf. Technol. 61(1), 179–182 (2012)
Hvam, L., Haug, A., Mortensen, N.: Assessment of benefits from product configuration systems. In: 13th Workshop on Configuration, ECAI …, Lisboa, Portugal (2010)
Trentin, A., Perin, E., Forza, C.: Product configurator impact on product quality. Int. J. Prod. Econ. 135(2), 850–859 (2012)
Trentin, A., Perin, E., Forza, C.: Sales configurator capabilities to avoid the product variety paradox: construct development and validation. Comput. Ind. 64(4), 436–447 (2013)
Forza, C., Salvador, F.: Managing for variety in the order acquisition and fulfilment process: the contribution of product configuration systems. Int. J. Prod. Econ. 76(1), 87–98 (2002)
Elgh, F.: Modeling and management of product knowledge in an engineer-to-order business model. In: ICED 11—18th International Conference on Engineering Design—Impacting Society Through Engineering Design, vol. 6, pp. 86–95 (2011)
Konijnendijk, P.A.: Coordinating marketing and manufacturing in ETO companies. Int. J. Prod. Econ. 37, 19–26 (1994)
Silventoinen, A., Denger, A., Lampela, H., Papinniemi, J.: Challenges of information reuse in customer-oriented engineering networks. Int. J. Inf. Manage. 34(6), 720–732 (2014)
Kingsman, B.G., De Souza, A.: A knowledge-based decision support system for cost estimation and pricing decisions in versatile manufacturing companies. Int. J. Prod. Econ. 53(2), 119–139 (1997)
Zahra, S.A., George, G.: Absorptive capacity: a review, reconceptualization, and extension. Acad. Manage. Rev. 27(2), 185–203 (2002)
Corso, M., Martini, A., Paolucci, E., Pellegrini, L.: Knowledge management in product innovation: an interpretative review. Int. J. Manag. Rev. 3(4), 341 (2001)
Teece, D.J.: Strategies for managing knowledge assets: the role of firm structure and industrial context. Long Range Plan. 33(1), 35–54 (2000)
Drucker, P.F.: Knowledge-worker productivity: the biggest challenge. IEEE Eng. Manag. Rev. 34(2), 29 (2006)
McDermott, R.: Why information technology inspired but cannot deliver knowledge management. Calif. Manag. Rev. 41(4), 103–117 (1999)
Crossan, M.M., Lane, H.W., White, R.E.: An organizational learning framework: from intuition to institution. Acad. Manag. Rev. 24(3), 522–537 (1999)
Veldman, J., Klingenberg, W.: Applicability of the capability maturity model for engineer-to-order firms. Int. J. Technol. Manag. 48(2), 219 (2009)
Forsman, S., Björngrim, N., Bystedt, A., Laitila, L., Bomark, P., Öhman, M.: Need for innovation in supplying engineer-to-order joinery products to construction: a case study in Sweden. Constr. Innov. Inf. Process. Manag. 12(4), 464–491 (2012)
Roberts, S., Delaney, P.J.: Rapid reengineering teams: case study on maximizing information technology. In: Annual International Conference Proceedings—American Production and Inventory Control Society, pp. 70–75 (1996)
Johannessen, J.A., Olaisen, J., Olsen, B.: Mismanagement of tacit knowledge: the importance of tacit knowledge, the danger of information technology, and what to do about it. Int. J. Inf. Manag. 21(1), 3–20 (2001)
Walsham, G.: Knowledge management: the benefits and limitations of computer systems. Eur. Manag. J. 19(6), 599–608 (2001)
Acknowledgment
This work is funded by the research project through the Swiss Commission for Technology and Innovation CTI (CTI no.: 15021.1 PFES-ES). The authors would like to thank all participating organizations for sharing their insights in the ETO industry.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 2.5 International License (http://creativecommons.org/licenses/by-nc/2.5/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.
The images or other third party material in this chapter are included in the chapter's Creative Commons license, unless indicated otherwise in a credit line to the material. If material is not included in the chapter's Creative Commons license and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder.
Copyright information
© 2017 Springer International Publishing Switzerland
About this paper
Cite this paper
Duchi, A., Tamburini, F., Parisi, D., Maghazei, O., Schönsleben, P. (2017). From ETO to Mass Customization: A Two-Horizon ETO Enabling Process. In: Bellemare, J., Carrier, S., Nielsen, K., Piller, F.T. (eds) Managing Complexity. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-29058-4_8
Download citation
DOI: https://doi.org/10.1007/978-3-319-29058-4_8
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-29056-0
Online ISBN: 978-3-319-29058-4
eBook Packages: Business and ManagementBusiness and Management (R0)