Configure to Order (CTO) is a production method where products are assembled from pre-existing components rather than being designed from scratch, as in Engineer to Order (ETO). This approach speeds up production and enhances efficiency by using available building blocks to create customized products. If your company still uses ETO, transitioning to CTO could offer significant benefits.
From ETO to CTO: Streamlining Production
Many manufacturers still use the ETO model, leading to long quote times, high development costs, and missed delivery deadlines. With increasing demand for custom products and faster responses, CTO offers a solution by speeding up processes and cutting costs.
How CTO Works
In CTO, products are assembled using pre-standardized components, much like building with LEGO blocks. Using a product configurator, you can quickly create a custom product with minimal engineering, reducing quote times and improving delivery reliability.
Customization with Standardization
CTO doesn’t limit customization. By standardizing components like hardware and software, businesses can offer a wide variety of options, while keeping the production process streamlined and efficient.
Benefits of CTO
- Improved Product Quality: Repeated processes lead to better optimization and higher quality.
- Fewer Errors: Standardization and repetition reduce mistakes and speed up production.
- Shorter Lead Times: Parallel processes cut down production time.
- Increased Innovation: Time saved can be used for process improvement and new product development.
- Lower Costs: Standardized, repeatable processes are more cost-efficient than custom-built ones.
By adopting CTO, companies can enhance speed, quality, and customer satisfaction while lowering costs. It’s a flexible, efficient approach for responding to market demands.
