What are the characteristics of engineer-to-order products in manufacturing (as opposed to mass production)? Why are...

What are the characteristics of engineer-to-order products in manufacturing (as opposed to mass production)?

Why are lead times significant for engineer-to-order products?

How does MES play a role in supporting manufacturing engineer-to-order products?

Solutions

Expert Solution

Q1) Engineer-to-order products are the products that start designing followed by development and production after an order is placed for the same. Below are the characteristics of engineer-to-order products in manufacturing -

1. Increased customer participation in design and manufacturing of the product.

2. Products are highly customized and complex and each ETO process produces a single distinct product.

3. Changes to design are pretty common and frequent.

4. Involves huge capital investment

Q2) Engineer-to-order products are normally huge construction and similar projects that involve huge investment costs as well as will have longer lead times as the products start with engineering design and end with delivery of the project.

As the projects involve multiple engineering, design changes and are dependent on multiple labor and equipment resources, lead times are pretty significant for the products.

Q3) Manufacturing Execution Systems (MES) play lesser role in supporting manufacturing engineer-to-order products by reducing lead times of manufacturing though design takes longer times but it does not require all the setup needed for MTO and MTS products as it is only a single large product/project with heavy focus on design.

keosha answered 1 year ago

Next > < Previous

Related Solutions

Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on...

Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $51,700 and its total manufacturing overhead cost to be $98,230. Several incomplete general ledger accounts show the transactions that occurred during the most recent accounting period which is given in second requirement. Required: 2. Fill in the missing values in...

Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on...

Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $54,800 and its total manufacturing overhead cost to be $98,640. Several incomplete general ledger accounts show the transactions that occurred during the most recent accounting period which is given in second requirement. Required: 1. Calculate the predetermined overhead rate. 2....

Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on...

Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $50,300 and its total manufacturing overhead cost to be $90,540. Several incomplete general ledger accounts showing the transactions that occurred during the most recent accounting period follow: Required: 1. Calculate the predetermined overhead rate. 2. Fill in...

What happens when the company order quantities larger than the forecast results for mass production systems?(between...

What happens when the company order quantities larger than the forecast results for mass production systems?(between 30-50 words)

What is a Production Plan? What is a Production Order? What are the differences between them?...

What is a Production Plan? What is a Production Order? What are the differences between them? Please be detailed in your response.

Why is a production cost report an important tool for managers in manufacturing organizations? What can...

Why is a production cost report an important tool for managers in manufacturing organizations? What can result if managers don't have accurate information on the product cost report?

juhania runs a manufacturing plant for the production of one of its products – the Fizzberry....

juhania runs a manufacturing plant for the production of one of its products – the Fizzberry. The budget expects production and sales of 8,000 units per month . Direct materials standard costs per unit; •Fizz 0.2kg at £10 per kg •Berries 4kg at £1.10 per kg The following data has been collected for April 2020:Actual materials used ;•1,440kg of Fizz at a total cost of £13,824 •24,000kg of berries at a total cost of £21,600• The output was 7,000 units...

What are the important features of job order production?

Cadburn Corp. uses a job order costing system with manufacturing overhead applied to products on the...

Cadburn Corp. uses a job order costing system with manufacturing overhead applied to products on the basis of direct labor hours. For the upcoming year, Cadburn Corp. estimated total manufacturing overhead cost at $250,000 and total direct labor hours of 50,000. During the year actual manufacturing overhead incurred was $262,500 and 51,000 direct labor hours were used. a. Calculate the predetermined overhead rate. b. Calculate how much manufacturing overhead will be applied to production. c. Is overhead over- or underapplied?...

Garcia Manufacturing uses a job order costing system and applies overhead to production on the basis...

Garcia Manufacturing uses a job order costing system and applies overhead to production on the basis of direct labour hours. In 2013, costs and production data were estimated to remain the same as 2012 with total manufacturing overhead costs estimated to be $1,050,000, direct labour costs estimated to be $35 an hour, and direct labour hours to be 20,000. On January 1, 2013, Job No. 50 was the only job in process. The production data incurred prior to January 1...

Subjects