ETO/MTO
ETO/MTOEngineer-To-Order/Make-To-Order
Fujitsu GloviaTel: 1 800 223-3799 1 310 563-7000Fax: 1 310 563-7300Email: marketing@glovia.comwww.glovia.com
ETO/MTOAs an Engineer to Order (ETO) and Make to Order(MTO) manufacturer, your needs have grown morecomplex and increasingly urgent. You must managea rapidly growing customized product base. You mustrespond to customer demands on time and on budget.You must gain visibility into all your operations andsynchronize your supply chain. You must alsoprovide immaculate service.Time to market, response to customer demands,reduced costs and top quality are of increasingimportance given the increased emphasis onmanufacturing, which yields increased potentialfor competition. At the same time, this increasedemphasis on manufacturing may providea greater supplier base.Glovia’s extended ERP suite can help you achievethese objectives efficiently and cost effectively byenabling you to select from more than 70 modulesto fit your manufacturing operating environment. Forexample, if your customer requires both material andservices, such as new engineering design and productinstallation, Glovia’s bid and contract managementenables you to identify, plan, track and synchronizethose demands from the initial contract. At the sametime, for those customers requiring only materialproducts you may choose to use sales quotes andorders initially with service specific contracts for followon services.The flexibility and adaptability of GLOVIA G2 will allowyou to manage and improve every aspect of yourbusiness with one proven solution to meet today’sbusiness needs and to support your system needs asyour company, products and industrygrow and change.We welcome the opportunity to discuss your businessissues with you and our potential solutions to thoseissues. In the interim, we invite you to visitour website at www.glovia.com.Sincerely,Your Glovia Team1
THE CUSTOMER IS ALWAYS RIGHTBut it is incumbent upon the manufacturerto inform the customer of the optionsand information of which theymay not be aware.As an Engineer-to-Order (ETO) Make-toOrder (MTO) manufacturer, you must not onlycontend with greater global competition,increasing customer demands, and the need toimprove productivity and efficiency, you mustalso manage bids and estimates for productsthey have never produced before, manageextremely difficult, ongoing changes inengineering, and control costs, resources, andservices for highly complex product lifecycleswith long lead times.Glovia’s extended enterprise resource planning(ERP) software suite, GLOVIA G2, is a true ETO/MTO solution designed to meet the complexrequirements of the ETO/MTO industry. Ratherthan presume one way of manufacturing orforcing a solution through the rigidity of atraditional ERP system, Glovia developed apowerful yet flexible solutions frameworkthat supports the actual ways in whichmanufacturers operate—including concurrentor progressive engineering and simultaneousmixed modes of operation. Glovia softwarereacts to product and project changes inseconds to rebalance supplies, resources, anddemands to keep you moving forward.2
“However, the fact is that only a minority of all ERP vendors properlysupport the ETO environments, let alone with flow manufacturingconcepts. Glovia would be one possible honorable exception.”Predrag Jakovljevic,Research Director of Technology Evaluation Centers, Inc.Manufacturers that use GLOVIA G2 haveall the tools to optimize and analyzeinformation in order to realize significantoperational benefits, including increasedon-time and on-budget deliveries andsubstantial reductions in customer leadtimes. State-of-the-art collaborativetechnology allows you to do real-timebusiness with other divisions as well asexternal suppliers and partners whereverthey are located. GLOVIA G2 is the idealsolution for you to meet everyday ETO/MTOprocess needs and challenges and remainfocused on overall long-term business goalsin manufacturing, projects, contracts andservices.Glovia’s success stems from our decadesof experience with engineer-to-orderand make-to-order manufacturers. Wehave always made it a priority to developthe necessary resources to address thegrowing demands of our customers and theincreasing demands put on them by theircustomers.3
CHALLENGES IN ETO & MTOMANUFACTURING ENVIRONMENTSToday’s ETO/MTO manufacturers manage anincreasingly complex and sensitive balanceof priorities in an increasingly complex anddemanding marketplace. To be successful, thereare five mission-critical areas in which you mustexcel: MANAGING CHANGE MANAGING COMMUNICATION MANAGING COSTS MANAGING RESOURCES MANAGING SERVICESTHE ETO/MTO PROCESSMANAGED BY GLOVIA G24
MANAGING CHANGEETO/MTO manufacturers must be able to plan for and react to an increasingvolume and variety of change. In engineering, the product changes constantlydue to material availability and costs, as well as new and enhanced material,all of which impact supply and production. In sales, customers change theirminds on the configurations of their order and you must be able to respondin a multitude of ways. Consequently, a huge part of the problem is to keepproduction synched with engineering and supply synched with production—managing an entire project to deliver a product on time and on budget. Themost accurate, accessible information is useless if the environment it supportsis not designed with enough flexibility and integration to accommodate theinevitability of customer and engineering changes.Any ETO/MTO cycle has three major pull points: Customer and EngineerDemand, Response to Demand (including supplies and 3rd party services), andProject Management and Scheduling. No one part of this demand “triangle” isindependent or in charge. Different points assert dominance at different timesand change to any one of them can pull things out of balance at any time.ETO/MTO PLANNING TRIANGLEForecastsSales OrdersContractsDependent DemandDemandTask/DemandReconciliationImpact Analysis(Hard Pegging)PRPProjectProjects/ProgramsTasks/ % CompleteWork Breakdown Structure5SupplyPurchase Orders Service Purchase OrdersService Work OrdersWork OrdersInstallation OrdersTransfer Orders
MANAGING COMMUNICATIONComplex, long-term ETO/MTO projectsinevitably involve numerous departments,groups within departments, andsuppliers and subcontractors manyof which might operate in variousinformation “silos.” Whereas previouslyEngineering would complete the designto customer requirements then forwardthe Engineering Bill of Materials, theEBOM, to Manufacturing to develop theManufacturing Bill of Materials, the MBOM,to represent the way the product is to bebuilt - with each department working totheir individual projects - today’s concurrentengineering / manufacturing mode ofoperating requires a progressive design/build environment with all working tothe same project. This enables real-timecommunication and information flow withinyour company and throughout your entiresupply chain.MANAGING COSTSToday’s contracts and sales orders areuncertain, shorter term, smaller in volumeand extremely cost sensitive. Because ofchange and other unknowns in ETO/MTOprojects, predicting and managing costs isan inexact science at best. Yet you need tomake the fastest, most accurate bids to yourcustomers and prospects and still maximizeprofitability. Contract-based manufacturershave little choice but to shore up new businessopportunities and increase competitivenessby creating quality products and services inshorter cycle times to meet rapidly changingmarket conditions and to secure bids withgreater confidence. You need visibility andcontrol of all project lifecycle costs—from thesuppliers through manufacturing, out tocustomers and into the aftermarket, includingkeeping your customers aware of continualproduct developments and enhancements.6
MANAGING RESOURCESETO/MTO manufacturing is all about balancinginterdependent processes that impact each other. Thedrivers and constraints of projects can be hard to identifyand always change as the project proceeds. Initially,design engineering time may change, then frequentlycritical manufacturing resources may be delayed — forinstance, a singular high tolerance machining center,suppliers may deliver late, and so on. At the same time,experienced installation and field service engineeringteams are not being properly scheduled for theirfunctions, which may result in impacts to other customerinstallations. Usually, both internal and externalresources—materials and personnel— are involved in aproject and effective scheduling saves time, money,and helps maintain margins. To know that activities willchange is one thing. To deduce the impact on relatedactivities and ultimately the full project is the real nameof the game.MANAGING SERVICESManufacturers are realizing more and more that inaddition to installation support, aftermarket productsupport including field services is critical to win furtherbusiness and is a major revenue opportunity. Productcomplexity and channel proliferation have increasedthe difficulty of maintaining organizational knowledgeand competency in all relationships at all times. Still,competition in this area is cutthroat and the slightestedge in services can mean all the difference in acquiring—and retaining—new and existing customers. ETO/MTOmanufacturers need sophisticated tools to manage andtrack service, materials and personnel over the long,detailed lifecycles of their products.7
BUSINESS CHALLENGES& BENEFITSDay and night, ETO/MTO manufacturersconfront important opportunities andhigh-pressure decisions that have directand indirect consequenceson their bottom line. GLOVIA G2 hasinnumerable strengths and advantagesthat automate and enhance thecompetencies you need to be as successfuland profitable as possible: MANAGING THE BID ANDESTIMATING PROCESS PROJECT MANAGEMENTAND ANALYSIS DESIGN AND ENGINEERING PLANNING AND CONTROLLINGKEY RESOURCES POST-SALES SERVICE ANDSUPPORT8
MANAGING THE BID AND ESTIMATING PROCESSETO/MTO manufacturers often make the error of starting their strategies ina price-centric fashion that is too limited and too internal. When pricingfor components is included, it is typically integrated through hand-builtintegrations that offer only a subset of what is required to price a bill ofmaterials (BOM) accurately during the quoting process. To be effective, you mustmake pricing a core to your strategy and also scale and extend your strategyoutside of the company to channel partners, service organizations and salesoperations. Because rapid responses are routinely an important competitiveadvantage, GLOVIA G2 helps your company develop accurate, competitive bidsfaster. You can use existing models, parts, costs, and routings as the baselineand add unique services and materials as required. To compress project leadtime, GLOVIA G2 provides worksheets that can be used to develop new andunique items that are not constrained by conventional material planning rules.You can invoice based on these evolving designs and convert them easily intoproduction items and deliverable services. In addition, if your contract with thecustomer is established for progress payments, the visibility and control enabledby way of the worksheet allows you to structure your contract for improved cashflow.CAPABILITIES AND BENEFITS INCLUDE: Apply superior estimating tools for manufacturing and serviceprojects Respond quickly to Requests for Quotes with bids thataccurately reflect customer requirements Realize life cycle costing—including standard, actual, andaverage—and cost visibility Define and track your sales proposal activities and convertdata into contracts or sales orders Quote, sell and deliver complex configured products easilyknowing that all required data is identified and maintained Bill progressively, based on product delivery, task, percentcomplete and so on9
PROJECT MANAGEMENT AND ANALYSISThe nature of managing any project is timely coordinationof a series of complex, interrelated tasks often performedby a myriad of resources. Raise this to the level of themanufacture and installation of a complex piece ofequipment or system and you have an enormous job onyour hands. Add the fact that most ERP systems are builton a work-order model and you have a project manager’snightmare. A well-designed project plan that providesvisibility across the multiple activities and organizationsinvolved in the development, production, and installationof an ETO/MTO product is critical to successful, on-time, onbudget completion.GLOVIA G2 enables you to manage customer projects andcontracts profitably by coordinating program resources andactivities. Our end-to-end solution manages everythingfrom defining the project and developing realistic estimatesand bids to optimizing the use of resources and managingcosts. You can begin a product cycle and track all costs whileGLOVIA G2 provides you with total, enterprise-wide, real-timevisibility into your project status.Dedicated accounting tools help you avoid runaway costsand enable profitability whether you are managing a singleproject or a complex, multi-project program. You can alsooptimize the use of project resources, plan activities andtasks, synchronize dates and determine the impact changeswill have on project completion and profitability.10
CAPABILITIES AND BENEFITS INCLUDE: Report ETC and EAC by project and program atany point in time View costs by project and program regardless offiscal period or by fiscal period for one or moreprojects Deploy project accounting for accurate visibilityand control of project performance Control integrated project definitions for any typeof project no matter how complex Enable seamless integration with MicrosoftProject using a bi-directional interface, whichhelps you develop and analyze project plans,create reports and coordinate activities Apply data mining to find the detail needed tosupport all costs Apply multi-level planning tools including datesynchronization, impact analysis, and simulation11
DESIGN AND ENGINEERINGTo remain competitive you need to synchronizeyour engineering, manufacturing, quality andmaterials teams, as well as your suppliers, withever-changing product information. The needfor excellence in managing change is broughtto bear most in engineering, particularly in thedesign process. Decisions made in this phaseaffect every downstream process.The rigidity of traditional systems makes itextremely difficult to configure products andmanufacturing processes in an environmentwhere all specifications and parameters are notfixed. A traditional, fixed BOM omits the factthat your projects have hard tangibles and bothinternal and external skills and services includedin delivery. Though you routinely have largeengineering items, possibly sub-assemblieswith hefty lead times, that are best initiatedindependent of the other items on the bill thatare as yet undefined, the traditional BOM doesnot allow for this either.GLOVIA G2 generates a product structurethat builds material and service resourcesprogressively for the most efficient andeffective planning. With progressiveengineering, your planning is not tied upin engineering and you have much greaterproduct flexibility. GLOVIA G2 helps youmanage your product design processeseffectively, control costs, coordinatedownstream activities, and deliver productson time and on budget. Our solution providesmanufacturers with a centralized repositoryfor all product-related data—includingspecifications, BOMs, routings and resourcedata, project and asset structures, as wellas related documentation—to help speednew product development, compress timeto-market, reduce development costs andmanage large product portfolios.12
CAPABILITIES AND BENEFITS INCLUDE: Increase productivity and efficiency with progressiveengineering cutting months out of lead times Define service items, including design engineering andproduct installation, with the same accuracy and precisionas your material items and easily incorporate into a singleproject plan Employ the centralized, integrated product informationrepository that ensures quality and reduces costs Apply powerful estimating and simulation capabilities forfast, accurate sales quotes and bids Use Local Structures to reduce costs and risks of productand engineering changes Support design, engineering, manufacturing, post-salesservice and financial accounting processes to provide youwith total control of the entire product lifecycle13
PLANNING AND CONTROLLINGKEY RESOURCESMaterial and resource management is highlycritical in effective ETO/MTO manufacturingand is one of its biggest challenges. Youmust know at any given moment exactlywhat materials, resources and skills areneeded, their availability, and exactly howmuch they will cost. This crucial information,managed in the planning systems, canchange at any time, even up to the day youship the end product out the door.GLOVIA G2 provides a sophisticated set ofplanning tools for material-based, serviceonly, and service plus-material projects.Materials and related skills and services areintegrated in local structures kept under anidentifier—as opposed to the strict, materialcentric recording in traditional BOMs. Ourcomprehensive, enterprise-wide solutionhelps you manage suppliers, control inventorylevels, and improve your supplier relationshipswithout risking customer service. The solutionsupports the entire procurement processincluding prioritizing approved suppliers andsearching for and selecting new suppliers,developing and executing supplier contracts,managing purchase orders, and supportingoutsourcing strategies. GLOVIA G2 balancespurchases across multiple suppliers and tracksorder status and supplier progress againstcontracts and sales orders. You get the rightmaterials to the right place at the right time—at the right price while meeting all qualityspecifications.The recording of any and all changes to theBOM is imperative. The impacts from thesechanges must be calculated and analyzedimmediately. Unfortunately, in manymanufacturing environments—particularlythose that incorporate frequent changesinto their processes—this vital need goesunmet. In even more cases, the informationsystems used to communicate with otherdepartments are not updated. These lapsescan produce havoc should a product failureoccur at the customer site.14
CAPABILITIES AND BENEFITS INCLUDE: Coordinate the lead times of your supplierswith your manufacturing processes—includingsub-assemblies and components—tomaximize efficiency and responsiveness Enjoy total flexibility in supplier relationships—as manual or as automated as you need them to be Match supplies with demands, which helps younegotiate contracts with committed pricing but flexibledelivery schedules Achieve complete visibility into materials and servicesas well as the flexibility to define and track bothmaterials and locations, including full lot and serialnumber traceability Plan and re-plan activities and tasks, synchronizetask and material/service delivery dates, and performimpact analysis and simulations to improve on-timecompletions Respond immediately and accurately with full visibilityto any change to the product structure or project plan.15
POST-SALES SERVICE AND SUPPORTProducts built by complex manufacturers are typically revenue-producingmachines for their buyers. Your customers want to purchase a good piece ofequipment, machine or system at a good price, but also need to know thenature, commitment, and tools that will be used to keep it in production.Leading manufacturers stress initial product quality as well as responsive andflexible service capabilities for planned support and emergencies. Servicescan reap tremendous profit. The revenue from aftermarket service activitiesand field upgrades can equal several times the initial purchase price.GLOVIA G2 not only helps you win new customers, it can turn your customerservice operations into a competitive advantage as well as a lucrative sourceof revenue. With the Glovia solution, you manage all service processes inone integrated system and have total visibility into your activities, status andlifecycle costs. GLOVIA G2’s comprehensive functionality helps you manage allpost-sales service activities cost-effectively—including call handling, servicequotation, service order management, field service dispatching, installationmanagement, preventative maintenance, service contract management,resource planning, warranty management and so on.Glovia’s solution helps you integrate the delivery of projects and productsseamlessly and provides customers, service representatives, and field servicepersonnel with real-time, web-based access to urgent and critical information.A “site register” with a dynamic, multi-level BOM, complete with effectivity, lotand serial number, goes live as soon as you install your product at a customersite. Your service technicians can ascertain the detailed history and companyknowledge of an entire product and service relationship. If you generatea product improvement, you can easily find all of the installations for thatproduct and offer an upgrade accordingly.16
CAPABILITIES AND BENEFITS INCLUDE: Plan and manage services just like materials Manage the delivery and procurement ofservices and monitor costs more efficiently Obtain visibility into both existing and plannedfield service engineer and material availability Plan and execute successful productinstallations by managing the coordinationand delivery of materials, services and otherresources including sub-contractors Respond promptly and profitably to customerneeds for repair— manage the entire serviceand repair cycle Track direct and indirect time and costs of fieldservice engineers to contract and project.17
Manage All RequirementsIncluding data requirements as wellas service and materialManage All ChangesFull Configuration Management, from AsDesigned (to meet customer demand);to As-Planned and As-Built (which reflectthe consistency between the demand andsupply); to As-Shipped (ensuring that thecorrect product – down to lot and serial –is shipped); through As-Installed (whichrepresents the BOM installed in the customersite register); to As-Maintained (to ensurethat all changes to the As-Shipped/AsInstalled are maintained by date, lot andserial)Manage All ActivitiesManage variables by way of Projects andPrograms and Project/Program Reporting18
SUMMARYOF BENEFITSManage Engineering toManufacturing ProgressivelyDefine As-Designed/As Required usingProgressive Engineering to increase efficiencyand productivityManage Customer BillingInvoice customers usingProgress Billing Triggers agreed toand pre-defined on award of contractExecute Impact AnalysisImmediately and accurately see changesrequired to demand/supply throughout theproduct structure and project plan19
BUSINESS PARTNERSHIPWe know that ETO/MTO manufacturers are not looking for asoftware supplier as much as a solution partner. From the start,we work to establish a partnership based on the ongoing valuethat we offer to your business. We provide one of the industry’slowest total costs of ownership. One customer concluded that theirGlovia investment was 1/10th what they would have paid for thesame solution from another provider.PROFESSIONAL SERVICESOur services professionals help you realize immediate andongoing value from your solution. We work closely with you todefine your strategic plans, operational tactics, and businessrequirements. We then bring together an experienced team ofprofessionals to deliver a complete business solution at exactlythe pace you want, fully leveraging your existing investments soyou gain tangible benefits right away. We come in, get you up andrunning—and in control.20
FUJITSUWhile enterprise applications are an essential element of yourIT strategy, they are only part of it. You also need a wide rangeof supporting technology products and services. Glovia is awholly owned subsidiary of Fujitsu.Fujitsu’s global presence, unmatched R&D investment, andintegrated suite of technology offerings make us the ideal,long-term partner for all your IT needs. No other ERP suppliercan deliver the value we can as a member of the Fujitsu team.21
International HeadquartersFujitsu Glovia, Inc.200 Continental Blvd, 3rd FloorEl Segundo, CA 90245 U.S.A.Toll Free: (800) 223-3799Phone: (310) 563-7000Fax: (310) 563-7300www.glovia.comEMEAFujitsu Glovia B.V.BIC 15657 BX Eindhoven,The NetherlandsPhone: 31 (0) 40-2655355Japan/AsiaFujitsu LimitedC-5F, Fujitsu Solution Square17-25 Shin Kamata, 1-ChomeOta-Ku, Tokyo 144-8588 JapanPhone: 81 (3) 3730-3145United KingdomFujitsu Glovia UK Ltd.960 Capability Green LutonBedfordshire LU1 3PEUnited KingdomPhone: 44 (0) 1582-635070Fax: 44 (0) 1582-635270 Fujitsu Glovia, Inc. 2020 GLOVIA and the Glovia logo are registered trademarks of Fujitsu, Ltd. v. 02/20
As an Engineer-to-Order (ETO) Make-to-Order (MTO) manufacturer, you must not only . (ERP) software suite, GLOVIA G2, is a true ETO/ MTO solution designed to meet the complex requirements of the ETO/MTO industry. Rather . market conditions and to secure
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