Integral Logistics Management — Operations Management and Supply Chain Management Within and Across Companies

7.5 Cooperation between R&D and Engineering in ETO Companies

Intended learning outcomes: Describe different means used for cooperation between the R&D and the order-specific engineering departments. Present the portfolio of cooperation types between R&D and engineering in ETO companies.



Mass customization is widely used in sectors such as construction, machinery and equipment, auto­motive and fashion. The “standard” product solution space is ultimately determined by the R&D department, as a part of the product design (PD) process, by determining the parameterization. The Engineering department (generally separate from the R&D department) sets up the order specific engineering (OSE) process, which covers all the design activities aimed at a specific customer order. This process should extend the product solution space quickly and efficiently so that it can cater for non-standard requirements.

A lack of cooperation between the R&D and Engineering departments in companies is one possible cause for delays and cost overruns. Engineer-to-order (ETO) firms have to find ways to quickly adapt and integrate engineering, manu­facturing and supplier capacities. In practice, however, there are significant differences in cooperation between the R&D and Engineering departments. [SöWe17] addresses these differences in firms in the construction and machinery industries. Section 7.5.1 summarizes the observations in the case of two companies — details about the various means (practices and tools) used can be found in [SöWe17]. Section 7.5.2 identifies factors that influence the cooperation and thus the choice of such means. From this, it develops a portfolio with four sectors of fundamental types of cooperation in ETO firms. Companies in the same sector can benefit from sharing their methods and tools.


Course section 7.5: Subsections and their intended learning outcomes



Course 7: Sections and their intended learning outcomes

  • 7.3 Generative Techniques

    Intended learning outcomes: Disclose the combinatorial aspect and the problem of redundant data. Present variants in bills of material and routing sheets as production rules of a knowledge-based system. Explain the use of production rules in order processing.

  • 7.4 Generative and Adaptive Techniques for Engineer-to-Order (ETO)

    Intended learning outcomes: Differentiate between the classical procedure and different archetypes of engineer-to-order. Describe the approach for basic and for repeatable engineer-to-order.

  • 7.5 Cooperation between R&D and Engineering in ETO Companies

    Intended learning outcomes: Describe different means used for cooperation between the R&D and the order-specific engineering departments. Present the portfolio of cooperation types between R&D and engineering in ETO companies.