If You Build It, They Will Come – Engineer to Order and Project Manufacturing | Part 2

In this blog series, John Walczak, CPIM, breaks down the benefits of Engineer to Order and Project Manufacturing features in JD Edwards EnterpriseOne.

In manufacturing, using the Make to Stock model driven by forecasted demand for “cookie cutter” items with known components does not always fit business requirements. Modern manufacturing organizations have to continually drive added value- and profits- by tailoring their products to customer specifications. They must diligently track and control the cost of production. JD Edwards EnterpriseOne is ideal for these sophisticated manufacturing environments, seamlessly supporting “mixed-mode” manufacturing for Make to Stock, Make to Order, Configure to Order and Engineer to Order models.

engineer to order and project manufacturingIn many industries, manufacturing is much more a project or a process that takes place following an order with very specific customer requirements. In these settings, design steps or a series of design steps throughout production may precede manufacturing. Materials or services may be procured specifically to satisfy the order. Linking the sales, design, procurement, production and shipping activities together is crucial to tracking progress, costs and profitability in these environments. JD Edwards EnterpriseOne Engineer to Order supports these requirements.

Sometimes orders require the tracking of all of the inputs of the production process to create a unique end item. Serialization can provide traceability at a granular, component level for the manufactured item. But, it doesn’t provide a “big picture” view of the relationship between a sales orders and the work orders, purchase orders and inventory inputs to produce a unique end item. JD Edwards EnterpriseOne Project Manufacturing can give you this visibility and control.

So when does it make sense to use Engineer to Order vs. Project Manufacturing? Over the next few blog posts we will explore how Corning Data helped one global corporation identify just that and share with you the benefits they achieved.

John Walczak, CPIM is Vice President of Software Solutions. He assists clients in creating a vision for their technology footprints that facilitate business strategies and objectives. A member of the JD Edwards family for nearly 25 years, John has been an active participant in Quest International presentations and demonstrations. John was a long time certified member and instructor of APICS.