Final answer:
ETO involves custom designing and engineering products tailored to customer specifications, requiring significant customer involvement from early stages. ATO centers on assembling standardized components into finished products as per customer orders, often with just-in-time delivery to balance inventory and meet demand efficiently. An example of ETO could be a custom conveyor system, while ATO is exemplified by Dell's customized computer orders.
Step-by-step explanation:
Engineer-to-Order vs. Assemble-to-Order
Engineer-to-order (ETO) and assemble-to-order (ATO) are two distinct manufacturing systems with different process flows and customer involvement. ETO involves designing, engineering, and producing products tailored to customer specifications. The customer is involved from the earliest stages, influencing design and features directly. This system is seen in complex, highly customized products. For example, the manufacturing of a custom conveyor belt system for a warehouse might follow the ETO model, as specific dimensions and functionalities need to be engineered to suit the warehouse requirements.
On the other hand, ATO involves assembling predefined, standardized components into a finished product according to customer orders. This system allows for some level of customization but relies heavily on an efficient supply chain for just-in-time delivery of necessary components. For instance, Dell's approach to building computers to a customer's specification – selecting a processor, storage, memory configurations – illustrates the ATO system.
Global assembly lines and just-in-time delivery play crucial roles in ATO systems, ensuring that components arrive as needed without costly warehousing. In contrast, ETO systems may require a longer lead time as the entire product needs to be designed and engineered before any manufacturing can start. Modern manufacturing practices like those at Toyota with their Toyota Production System are examples of highly tuned ATO manufacturing that balances inventory control, quality assurance, and supplier relationships to efficiently meet customer demand.