By modularizing and structuring the product portfolio, modules can be developed whose combinations lead to different variants of the product. This firmly defined combinatorics and the associated variants can then be displayed in a defined product catalog, for example. This alignment of the product is called Configure-to-Order. This approach differs from Engineer-to-Order (ETO), in which a fully customized solution is developed.
Traditionally, companies from the machine building and plant construction industries in particular have been strongly influenced by the ETO method and strive for a higher proportion of CTO.
With the CTO method, you can configure your product according to your individual needs by selecting from predefined options. Instead of developing your product based on a specific order, you can configure it with all possible components or options.
In terms of products, further standardization levels in CAD processing, known as engineering automation, promise further increases in efficiency in the CTO environment. In terms of processes, the concept of the smart factory will make it possible to mass-produce customized orders in the future. The digitalization of design and production is becoming a major catalyst here.
Cideon helps you to find, customize and implement solutions for end-to-end data integrity and information platforms along the entire value chain. Our Cideon Conify solution in particular is perfect for optimizing your configuration process and integrating all systems (CAD, PDM, ERP) into the process.
Configure-to-Order (CTO) refers to the ability to create customized products by selecting specific configuration options. This approach offers flexibility and efficiency in production. Here are some fields of application and typical scenarios for Configure-to-Order:
Use Configure-to-Order (CTO) to utilize the properties of a new development by selecting from predefined elements. Discover the greatest advantages of the method.
The meaning of CTO is easy to explain: Configure-to-Order (CTO) is a method by which products or components are created according to predefined options. Instead of starting from scratch with every new customer order, standardized components are used.
CTO+ involves extended customization options of Configure-to-Order. Pre-configured products are adapted to specific customer requirements during order processing. In addition to pre-configured product components, some components are designed according to individual customer requirements.
In contrast to Engineer-to-Order (ETO), where products are only engineered after an order has been placed, CTO enables a predefined configuration of the products, which can then be adapted as required (CTO+). This optimizes several processes along the value chain.
CTO enables efficient use of production capacities, as products are manufactured in predefined configurations. This improves responsiveness to customer inquiries and realizes the product or component faster and more cost-effectively.
Once the customer request has been received, a proposal is created from a range of predefined options and configurations. Once the customer has placed an order, the proposal data is then transferred to manufacturing, where the product is produced according to the specified configurations.
As an alternative, the product selection can also be made by the customer.
CTO is used in various industries, including machine building and plant construction, computer hardware, furniture and automotive engineering. Companies that offer different product variants often benefit from this approach.
No, Configure-to-Order can be implemented by companies of any size. It is particularly useful for companies that want to offer a wide range of product variations, regardless of their size.
There are various software solutions that have been specially developed for the implementation of CTO processes. These support configuration, order processing and production planning. A good example of this is Cideon Conify.
Our graphic shows you the differences between Configure-to-Order (CTO) and Engineer-to-Order (ETO) and what CTO+ means.
Cideon Conify consistently links data from the sales and engineering phases to automatically provide PDM-compliant MCAD and ECAD data of the configured product. This is the basis for the subsequent engineering-to-order and the creation of ERP-specific parts lists, work plans, circuit diagrams and production processes according to customer requirements, so that individual products can be created quickly and in accordance with specifications.
Main advantages:
Cideon Conify is the ideal combination of CONnection and CONfiguration!
Discover further topics that will help you to exploit the full potential of your business processes and benefit from our in-depth know-how:
Cideon advises and supports companies in optimizing their product development processes - from conception and engineering to production and service. We stand for:
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