Production control in engineer-to-order firms

J.W.M. Bertrand, D.R. Muntslag

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Abstract

During the last decade many engineer-to-order firms have tried to implement MRP II systems, however, the little or no success. The choice of a MRP II system is often based on the wide availability of MRP II software and the fact that the exact reasons why this software is not suitable for engineer-to-order firms are not understood. Therefore, the many implementation failures are not surprising. In the first part of this paper we will discuss the main differences between engineer-to-order manufacturing and the make-to-stock manufacturing (which was the basis for the development of MRP II software). Important characteristics of the engineer-to-order situation are: the important role of the customer order, the customer-specific product specifications and the product and production uncertainty. These characteristics of the engineer-to-order production situation differ substantially from the basic assumptions of MRP II. An engineer-to-order situation thus asks for a completely different production control system. In the second part of this paper we will present a production control framework which better suits the specific characteristics of the engineer-to-order situation
Original languageEnglish
Title of host publicationStrategic and operational issues in production economics : proceedings of the seventh international working seminar on production economics, Igls, Austria, February 17-21, 1992
EditorsR.W. Grübström, H.H. Hinterhuber, J. Lundquist
Place of PublicationAmsterdam
PublisherElsevier
Pages3-22
ISBN (Print)0-444-81689-5
DOIs
Publication statusPublished - 1993

Publication series

NameInternational Journal of Production Economics
Volume30-31
ISSN (Print)0925-5273

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