1. Prepared by:
ETO and Creating
‘Parts on the Fly’
Using Oracle EnterpriseOne v9.1
Engineer to Order (ETO)
Manufacturing to create Parts Lists
and Routings without prior creation of
BOMs and Routings
Keith Figgins, CPIM
3. Project Requirements
• Utilize EnterpriseOne v9.1 to replace legacy Epicor
systems
– Users had flexibility to create Projects and WO’s without
creating Item Masters or Branch Plant records. No
standard BOMs or Routings were used.
– Historical Projects and WO’s were copied for new
customer orders and then revised based on engineering
requirements.
– Multiple WO’s were linked together under a Project to
determine Actual Production Cost vs. Estimated-
Contractual cost.
• Solution
– Implement E1 v9.1 ETO to link project WO’s together for
managing purchasing, production, and costing.
– Develop innovative solution to address users
requirements to create WO’s, Parts, and Routings
without requiring Master Data configuration.
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4. Brief Overview of ETO
JD Edwards supports 6 kinds of Manufacturing
1. Discrete
2. Process
3. Rate Based
4. Project
5. Engineer to Order
6. Demand Flow (Lean)
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5. Differences between MTS/MTO and ETO
• Make to stock (MTS) & Make-to-Order (MTO) are
similar.
• In MTO, production work orders are linked to sales
orders.
• In MTS, production work orders are based on sales
forecast.
• MTS is a usually associated with the industrial revolution
mass production techniques, where in anticipation of
demand for quantities of goods, they are produced and
stocked in warehouses.
• The advantage of producing for stock/sales is that you
are able to spread production evenly over a given time
period, avoiding most of the hectic scenes that often
characterize make-to-order production.
6. 1. What is Engineer to Order (ETO)?What
• Supplier and ETO manufacturer interactions are more
critical, as ETO customers order unique items.
• ETO materials are project specific and items are not
frequently used or ordered,
• Components usually have long lead times, compared to
MTS manufacturers.
Key ETO ERP characteristics include:
• Tight scheduling is expected with no scope of error.
• Unique components and end items
• Enhanced inventory control (by Project) and Vendor
management (by Project)
• Evaluating actual manufacturing costs against quotes
provided to project customer.
What is ETO?
8. When to use ETO vs. MTO?
• Costing (Actual Cost, Job Cost). Need ability to
manage multiple WO’s under a single project while
managing and consolidating multiple WO costs
(WBS-Work Breakdown Structure)
• Need ability to link and track non-manufacturing
tasks/activities with a project for a finished item(s)
(Engineering, Long lead Time Purchases, Services)
• Monitor quotes and estimates against actual costs.
• Purchasing (Material Management) needs visibility
to purchase, inventory, and issue materials by
project. Project Requirements Planning (PRP)
• Need to link to multiple WO’s together for Planning
(scheduling) with WO sub-assembly dependencies
and Start when Finish (MS Project)
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9. MTS/MTO verses ETO Summary
Suppliers
Customers
Manufacturer
Engineer to
Order
• Finished Item: unique
Design Requirements
• Non-Standard
Components
• Actual cost measured
against Budget-Quote
• Longer Manufacturing
Cycle
• Unique Outside
process requirements
• Multiple WO’s and
PO’s tracked to a
Project-Finished Item
Make to Order
• Mostly static BOM
and Routing
• Similar end items
and components
• Standard Costs
measurement
• Commonality permits
maximum shop floor
efficiency and
utilization
• Standard Outside
Processes
10. Engineer to Order Project Manufacturing
Purpose of functionality
Engineering. WBS.
Planned/Actual cost
management
Process visibility through
Production Number
(Pegging)
Target industry
Design/Fabricate/Deliver/Inst
all
Custom
Fabrication/Configured
Scope of production method ETO, CTO CTO, MTO, MTS
Frequency of sales order Almost one time only Repetitive
Production volume Low Low to High
Total throughput time Months to years One day to a few months
Which number to peg? Project Number Production Number
What can be pegged? SO, WO, PO Forecast, SO, WO, PO
ETO vs. Project Manufacturing
11. Comparison ITEMS JDE E1 ETO Project Manufacturing
Multiple Deliverables Yes
One demand per Production
Number
Dependencies between
tasks/deliverables
Yes No
Types of Work Orders
Manufacturing, Service,
Equipment
Manufacturing Only
How to peg the number to
all orders?
Auto-assign Project number
through PRP or Project
Workbench
Auto-assign Production Number
to orders through MRP, assign
at Inventory Issue or Re-assign
manually through Production
Number Workbench
Can Inventory be reserved
for project?
Hard Project Commitment
Standard Commitment
Functionality
Which orders can be
aggregated?
N/A PO, Inventory
Cost roll-up Based on Project WBS
Based on Manufacturing Cost
Roll-up
Licensed Under Manufacturing Management Requirements Planning
Differences between ETO and Project Mfg.
12. ETO Phases Overview
Oracle EnterpriseOne Engineer to Order provides
information and mechanisms to move a project
through these four phases that are commonly
associated with projects:
• Project initiation
• Project planning
• Project execution
• Project close
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13. ETO is Cross Functional
ETO utilizes almost all of the EnterpriseOne ERP systems
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14. ETO and Creating ‘Parts on the Fly’
Using E1 v9.1 Engineer to Order
Manufacturing to create Parts Lists and
Routings without prior creation of BOMs
and Routings
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15. Engineer to Order (ETO) Supposition:
• ETO creates Work Orders within a Project that consists
of standard inventory parts and parts that will be used
only once.
• Historically, creating Item Master, Branch/Plant (B/P) and
BOM records for one time parts resulted in additional
effort and records.
• How can ETO facilitate purchasing one time parts to
reduce entry effort and creating unnecessary records?
• Using Oracle’s EnterpriseOne v9.1, ETO creates WO
parts lists and sub-assemblies for ‘Parts on the Fly’
(POF) that do not require creating Item Masters, B/P
records, BOMs or Routings.
• The POF can be tracked using Lot Traceability and used
in Actual Costing of the Finished Item.
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17. ETO POF Part Configuration:
• The Finished Good item must be a Part with an Item
Master and B/P record.
• Finished good must be setup with costing level 3
(F4101) and B/P Cost 09 = Actual Cost (F4105).
• Create IM and B/P for Generic Component:
Standard (C1) and Inspection (C2 - Receipt
Routing). Lot Processing turned on at component
level.
• Generic Component: Stock type = H. Cost level 3
and B/P Cost 08 = Purchase Base Cost (F4105).
• Create Generic Sub-assemblies like generic
components with different levels for visual clarity
and cost tracking (SA1, SA2, SA3, etc.). Cost level
3 and Cost 09 (F4105).
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18. ETO POF Configuration Requirements
(cont.):
• Lot tracking is implemented by component and sub-
assembly
• Setup Standard ETO Project configuration.
• PO line type and PO Receiving program (P4312)
auto issues project parts so that POF are auto
issued to Project upon PO Receipt.
• Configure receipt routing for C2 and appropriate
vendors.
• Create ‘Dummy’ BOM and Routing for SAx sub-
assembly to eliminate ‘No BOM/Routing’ Warnings.
• Job Cost not Required.
• Actual Costing is used.
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19. ETO POF Process:
• Create ETO Project. Add Work Orders for finished item
and sub-assemblies (SA1, SA2, SA3, etc.). SAx re-
used at multiple levels.
• Make sub-assemblies (SA1, SA2, etc.) as Backflush (B)
in the Parent parts list so that completions (P31114) will
auto issue them to Parent with WO Lot number/Cost.
• In WO parts list, add components C1/C2. Cut/paste text
description from an excel parts list. Add proposed
vendor and cost for the POF. Add POF part specs in
attachment. Can also copy parts list from historical WO.
• C2 is Receipts Routing component.
• Create Requisition/PO from the parts list.
• Consolidate Requisitions (OR) to a Purchase Order
(OP) by Vendor (P43060).
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20. ETO POF Process:
• Print Purchase Order with C1/C2 part and description
and specs from Parts List, Requisition text attachment.
• Receive PO. Part is auto issued to the WO parts list
(Line Type and Processing Option P4312).
• Lot numbers are assigned to each POF (C1/C2) from
next numbers at receipt time.
• Receipt Routing will be called for C2 items.
• WO Routings can also be created on the fly. No Part
routing necessary. Can also copy Routing from a
historical WO.
• Also create Outside Operations on the Fly. No need to
run R31410 Process/Print WO. Outside OP purchase
order will need to be manually priced.
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21. ETO POF Process:
• POF parts lists and manually created routings will
interactively update Planned Costs in the ETO Work
Bench.
• Completions (P31114) will update actual costs to
Finished item in the F4105 (09 Actual cost).
• WIP Accounting (R31802a) will create GL entries.
• Roll actual WIP costs to ETO Work Bench as needed to
compare actual vs. planned WO costs (R31P301)
• Item/Lot Traceability created from purchased POF
components and Sub-Assembly POF to Finished Item.
• Can inter-mix Stock items with POF (STKT = H for PRP)
• Can inter-mix Stock BOMs and Routings with POF sub-
assemblies (Mixed Mode).
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22. ETO POF Pro/Cons:
• No creation of unnecessary Items, B/P, BOM, or
Routings.
• Faster creation of WOs when using ETO and POF.
• Requisition consolidation and receipt routing will
work with POF. Fewer PO’s created.
• Outside Ops IM and B/P created interactively. Must
manually create Cost (F4105) or manually cost PO.
• Benefits of ETO: Scheduling, Cost Management
(planned vs. Actual) remain available.
• POF will not work with standard manufacturing, or
standard costing. Can mix POF with standard cost
items.
• POF will not work with MRP/PRP.
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23. ETO POF SRs:
• 21976680 : Purchasing Receipts Program Over rides WO
parts List description when parts Auto Issue at PO Receipt
• 21975662 : Text from Parts list does not transfer to PO
when created from P3111.
• 13930254 : Parts Auto issued at PO Receipt to WO Parts
List do not equal R31802a GL.
• 22582407 : Consolidating ETO Requisitions to PO’s and
Auto Issue at PO Receipt
• 23041792 : Planned Costs not updated until re-enter WO
Parts List/Routing and Change Qty/Hrs
• 23049222: Reserved by error occurs when attempting to
add WO P/L on new task.
• 23091564: R31804. No accounting batch created when
there are AAI errors.
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