Released on = February 22, 2006, 9:12 am

Press Release Author = Thomas Cutler

Industry = Management

Press Release Summary = Manufacturers Pressures Recognized for Engineer-to-Order
Manufacturers by ETO Institute

Press Release Body = Engineer-to-order manufacturers face intense pressures to
reduce costs and shorten cycle times, while maintaining high quality. The ETO
Institute points out that, to stay competitive, domestic engineer-to-order and
project-based manufacturers must turn to technology to stay competitive. However,
their special business challenges cannot be resolved by traditional,
repetitive-manufacturing solutions.

Thomas R. Cutler, spokesperson for the ETO Institute (www.etoinstitute.org) noted,
"The Institute recommends that manufacturers investigate three levels of technology
to help achieve their business goals. First, point solutions, such as CAD systems
for the engineering department, to improve the accuracy and speed of engineering
functions or project-management software may be needed to plan and control projects.
Second, manufacturers should consider an integrated solution that would allow data
to flow seamlessly throughout the organization and give management the timely
information it needs to make informed decisions while improving data accuracy and
eliminating re-keying of data. Finally, the ETO Institute recommends that
manufacturers develop an optimized solution that would encompass a program of
continuous improvement while removing non-value-added activities, cutting lead
times, and driving waste and cost from the organization."

According to the January 2006 issue of the Penton publication American Machinist,
"Engineer-to-order products usually are complex and, unlike repetitively
manufactured products, customers are involved extensively throughout the design and
manufacturing processes. The steady stream of engineering changes, and rework that
results, makes project planning and control difficult."

Successful engineer-to-order manufacturers have developed new business strategies
rather than relying on old business models that may be better suited to repetitive
manufacturing. For instance, successful engineer-to-order manufacturers do not
compete with commodity machine builders, but rather develop niche-market expertise
that creates product and industry-sector distinction. Typically, larger, more
expensive machines need more services and support, and generate alternative revenue
streams.




Web Site = http://www.etoinstitute.org

Contact Details = ETO Institute
www.etoinstitute.org
Thomas Cutler
888-902-0300