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Glossary

Make-to-order (MTO / ETO)

In make-to-order (MTO) production starts after the customer order arrives; in engineer-to-order (ETO) the product is designed or adapted to the order.

In make-to-stock, products are produced in advance according to a forecast. In MTO and ETO the bill of materials, cost and delivery date depend on the order; cost estimation at the quotation stage and project tracking gain importance.

How it affects your decision

The type of production you work in separates ERP candidates at the first screening. For a mainly ETO manufacturer, order-specific bills of materials, engineering changes and project cost tracking come first; a structure designed for make-to-stock carries this only through adaptation.

Where you will meet it

Related terms

All terms

What does this term mean in your project?

Talk to a consultant; let’s look at it together through your own processes.