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Procedia Computer Science 219 (2023) 1727–1734

CENTERIS – International Conference on ENTERprise Information Systems / ProjMAN –

International Conference on Project MANagement / HCist – International Conference on
Health and Social Care Information Systems and Technologies 2022

Engineer-to-Order Challenges and Issues: A Systematic Literature

Review of the manufacturing industry
Carlos S. Fortesa,b,
a,b,
*, Alexandra B. Tenerab,c
b,c
, Pedro F. Cunhaaa
Escola
Escola Superior
aa
Superior dede Tecnologia
Tecnologia dede Setúbal
Setúbal (ESTS),
(ESTS), Instituto
Instituto Politécnico
Politécnico de
de Setúbal,
Setúbal, Campus
Campus do
do IPS,
IPS, 2910-761,
2910-761, Portugal
Portugal
UNIDEMI,
UNIDEMI, DEMI,
bb
DEMI, NOVA
NOVA School
School ofof Science
Science &
& Technology
Technology (FCT),
(FCT), Universidade
Universidade NOVA
NOVA de de Lisboa,
Lisboa, Campus
Campus de
de Caparica
Caparica 2829-516,
2829-516, Portugal
Portugal
cc
LASI,
LASI, Laboratório
Laboratório Associado
Associado de
de Sistemas
Sistemas Inteligentes,
Inteligentes, 4800-058
4800-058 Guimarães,
Guimarães, Portugal
Portugal

Abstract
Abstract
Companies
Companies in in engineer–to–order
engineer–to–order (ETO)(ETO) manufacturing
manufacturing environments
environments that that seek
seek efficiency
efficiency gains
gains through
through adopting
adopting aa massmass
customisation
customisation strategy
strategy meet
meet significant
significant challenges.
challenges. TheThe implementation
implementation of of the
the mass
mass customisation
customisation (MC) (MC) strongly
strongly focuses
focuses on on
transitioning
transitioning from
from mass
mass production.
production. TheThe purpose
purpose ofof this
this study
study is is to
to identify
identify current
current areas
areas of
of concern
concern and and operational
operational challenges
challenges
when
when adopting
adopting mass
mass customisation
customisation principles
principles inin ETO
ETO companies.
companies. A A Systematic
Systematic Literature
Literature Review
Review (SLR)
(SLR) was was carried
carried to
to evaluate
evaluate
the
the challenges
challenges the
the Portuguese
Portuguese Industry
Industry faces
faces in
in the
the moulding
moulding companies’
companies’ sectors
sectors and
and how
how they
they are
are improving
improving theirtheir ability
ability to
to meet
meet
deadlines.
deadlines. The
The study
study will
will look
look at
at ways
ways ofof boosting
boosting customer
customer satisfaction
satisfaction by by providing
providing unique
unique products
products at at aa relatively
relatively low
low cost.
cost. The
The
study
study exposed
exposed issues
issues of
of MCMC in
in ETO
ETO companies
companies in in general,
general, itit is
is critical
critical toto achieving
achieving more
more efficient
efficient use
use ofof resources,
resources, workflow,
workflow, and and
innovative
innovative management
management methods
methods andand approaches
approaches to to deal
deal with
with thethe variability
variability and
and complexity
complexity of of this
this manufacturing
manufacturing system.
system. TheThe
competitive
competitive pressure
pressure to
to achieve
achieve better
better efficiency
efficiency and
and effectiveness
effectiveness in in this
this type
type of
of organisation
organisation requires
requires constantly
constantly searching
searching forfor new
new
concepts
concepts and
and tools
tools that
that can
can be
be developed
developed andand applied.
applied. Furthermore,
Furthermore, this this paper
paper explores
explores the
the ETO
ETO companies'
companies' significant
significant difficulties
difficulties
and
and the
the technical
technical and
and scientific
scientific solutions
solutions used
used and
and proposed
proposed as as its
its significant
significant contribution,
contribution, asas well
well as
as aa proposal
proposal forfor future
future research
research
and
and development
development to to increase
increase ETO
ETO companies'
companies' resilience
resilience and
and performance
performance level level in
in managing
managing their
their value
value chain
chain and
and executing
executing
operations
operations in
in response
response to to customer
customer requirements.
requirements.

©
©© 2022
2023 The
2022 The Authors.
The Authors. Published
Authors. Published by
Published by Elsevier
by ELSEVIER
ELSEVIER B.V.B.V.
B.V.
This is
This
This is an
is an open
an open access
open access article
access article under
article under the
under the CC
the CC BY-NC-ND
CC BY-NC-ND license
BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0)
license (https://creativecommons.org/licenses/by-nc-nd/4.0)
(https://creativecommons.org/licenses/by-nc-nd/4.0)
Peer-review under
Peer-review
Peer-review underresponsibility
under responsibilityofof
responsibility ofthe
thescientific
the committee
scientific
scientific committee
committee of of
the CENTERIS
of the
the CENTERIS
CENTERIS – International Conference
–– International
International on ENTERprise
Conference
Conference on Information
on ENTERprise
ENTERprise
Systems
Information / ProjMAN
Information Systems - International
Systems // ProjMAN Conference
ProjMAN -- International on Project
International Conference MANagement
Conference on on Project / HCist -
Project MANagementInternational
MANagement // HCist Conference on
HCist -- InternationalHealth and
International ConferenceSocial
Conference on Care
on
Information
Health
Health and Systems
and Social
Social andInformation
Care
Care Technologies
Information 2022 and
Systems
Systems and Technologies
Technologies 20222022

** Corresponding
Corresponding author.
author. Tel.:
Tel.: +351-265790000
+351-265790000 (ext.4212)
(ext.4212) fax:
fax: +0-000-000-0000
+0-000-000-0000 ..
E-mail address: [email protected]
E-mail address: [email protected]

1877-0509
1877-0509 © © 2022
2022 The
The Authors.
Authors. Published
Published by by ELSEVIER
ELSEVIER B.V.
B.V.
This
This is
is an
an open
open access
access article
article under
under the
the CC
CC BY-NC-ND
BY-NC-ND license
license (https://creativecommons.org/licenses/by-nc-nd/4.0)
(https://creativecommons.org/licenses/by-nc-nd/4.0)
Peer-review
Peer-review under
under responsibility
responsibility of
of the
the scientific
scientific committee
committee of
of the
the CENTERIS
CENTERIS –– International
International Conference
Conference on
on ENTERprise
ENTERprise Information
Information Systems
Systems //
ProjMAN
ProjMAN -- International
International Conference
Conference on on Project
Project MANagement
MANagement // HCist
HCist -- International
International Conference
Conference on
on Health
Health and
and Social
Social Care
Care Information
Information Systems
Systems
and
and Technologies
Technologies 2022
2022
1877-0509 © 2023 The Authors. Published by Elsevier B.V.
This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0)
Peer-review under responsibility of the scientific committee of the CENTERIS – International Conference on ENTERprise
Information Systems / ProjMAN - International Conference on Project MANagement / HCist - International Conference
on Health and Social Care Information Systems and Technologies 2022
10.1016/j.procs.2023.01.467
1728 Carlos S. Fortes et al. / Procedia Computer Science 219 (2023) 1727–1734
2 Carlos S. Fortes/ Procedia Computer Science 00 (2022) 000–000

Keywords: Engineering-to-Order; Workflow; Issue; Efficient; Management; Deadlines; Problem; Fulfilment.

1. Introduction

1.1. Background

The engineer-to-order (ETO) companies are typically dedicated to manufacturing complex products with a relevant
engineering component and high-added value products. These companies, particularly in Portugal, are generally small
and medium-sized, playing a significant role in specific sectors and regions, operating mainly in international markets.
The economic development of a region and the need to ensure the company’s competitiveness in an increasingly global
economy is significant. Those companies supply many industrial sectors as diverse as the automotive, aeronautical,
and pharmaceutical/medical device industries. Their business model will base on the value they provide to their clients
in their ability to design, develop and manufacture products to order [1]. The moulding industry is an example of a
sector where this type of company is common. Production planning and shop floor management are two activities
whose difficulty is much related to the product and process diversity that increases system variability and complexity.
Responding adequately to customers' expectations, an enormous demand is required in these very competitive sectors
to execute many activities. So, the effectiveness of the shop floor planning and decisions making is common for this
type of company, as they must fulfil within increasing shorter delivery times defined by the market or clients that are
also requesting increasing quality and lower costs. The ETO companies often deal with a workflow in which product
design, bill of material (BOM) details, and the required drawings and manufacturing work instructions for each order
must be quickly generated and used to meet the tailored customer's specifications.

1.2. Scope and Outline

The variety of work to be developed in ETO companies, the complexity of customised products and the underlying
uncertainties of the markets require planning and decision-making combined with other core processes, such as bidding
and procurement for improved results, throughout their value chain. Therefore, this work is motivated by the need (a)
to support ETO companies to be more efficient and effective in the performance of their activities, incrementing their
role or relevance in a particular type of industrial sector and the economy; (b) to provide new methods, methodologies,
techniques or tools to ETO companies to increment their competitiveness; and (c) to minimise the difficulties inherent
to the ETO business, i.e., improve their ability to deal with overall value chain variability and complexity. The
Systematic Literature Review (SLR) performed aims to identify the main challenges and issues related to the ETO
companies, as well as methods and approaches presented in the scientific literature to resolve or mitigate these issues
in the value chain of this type of company and identify potential current drawbacks. So, the search for scientific
literature on the topic in question is intended to gain knowledge about the several viewpoints and to interpret the
study's theories and models in a holistic approach. This paper is organised as follows: Section 2 provides a review
methodology. Section 3 discusses the findings. Finally, section 4 presents the major study conclusions and identifies
future works.

2. Methodology

This paper is a systematic literature review on ETO companies' difficulties and proposed technical and scientific
solutions. Systematic literature reviews differ from Narrative reviews in the way they seek to answer a particular
research question, i.e., by using a planned and systematic method to identify, select and critically appraise the studies
included in the literature review [2]. The SLR allows access to different authors' contributions and analyses and
synthesises the results of relevant literature. This way, we understand the breadth and depth of the existing body of
work identify gaps to explore, and allow conclusions on what is known and not known [3]. The SLR methodology
performs a systematic literature search according to the PRISMA [5] guidance approach. Specific eligibility criteria
included the following: (a) papers discussing ETO problems; (b) process planning; (c) manufacturing articles related;
(d) production planning and control; (e) articles published in English. The articles that did not meet the previous criteria
were excluded; (g) articles about building and ships and (h) systematics review articles were also disqualified. Studies
were exhaustively identified by searching digital databases of articles published from January 2017 to April 2022. The
 Carlos S. Fortes et al. / Procedia Computer Science 219 (2023) 1727–1734 1729
Carlos S. Fortes et al./ Procedia Computer Science 00 (2022) 000–000 3

papers of this review were searched via the Web of Science and Scopus database. The search terms were as follows:
‘engineer* to order’ AND ‘variab*’ OR ‘uncertaint*’ OR ‘complex*’ AND ‘produc* control’ OR ‘plan*’ OR
‘schedul*’ OR ‘produc* process’ OR ‘workflow*’ OR ‘shop-floor*’ OR ‘digital*’ OR ‘problem*’ OR ‘issue*’ OR
‘constraint*’ OR ‘unefficien*’ NOT ‘ship*’ OR ‘building*’.
The flow of citation through the systematic review process is depicted in figure 1. The study search yielded a total
of 140 potentially relevant publications. This assessment presented the basis for selecting 24 papers, as shown in Figure
1. One hundred and eight publications were screened for inclusion in the study after (n=32) were excluded. Further,
six more were included, prefacing 24 potentially relevant publications. Sixty-two articles did not meet the criteria and
were therefore rejected at the title and abstract level. Finally, 46 potentially relevant citations were obtained, and only
18 articles were relevant. Further, six more were included, prefacing 24 potentially relevant publications. This
assessment presented the basis for selecting 24 papers, as shown in Figure 1. While the study assessed the shortlisted
studies in light of the identified inclusion/exclusion criteria, we also feel that the 24 shortlisted papers represent a
robust number for analysis. Previous studies in different domains have used similar sample sizes, such as 19 papers in
nursing [4], 23 papers in learning management [5] and 23 papers in project management [6]. Hence, our sample size
of 24 papers is also justified.

Figure 1. Flow chart diagram of the selected studies

The following section synthesises what was extracted from an in-depth content analysis of the identified articles
concerning the general framework and competitive environment in which ETO operates. This type of company's
principal characteristics and organisation is related to the actual challenges and issues.

3. Findings and discussion

ETO companies are characterised as higher value-added product fabrication, with a high customisation level,
dedicated to low volumes production of small batches or one-of-kind products. These companies are project-based
organisations, as shown in figure 2. Their main activity focuses on new product design and its manufacturing and
assembly, the production activity with a very small lot size or one-of-a-kind and a wide variety of product mix. Their
processes are rather complex [7] and have a high technical and technological specialisation level, requiring flexibility
and qualified workers. ETO companies are customer-centric [8], which means their product development is always
done with strong customer participation or involvement. Due to the uncertainty and complexity in the initial phase of
customer product characteristics, the purchase of raw material and the production of the product designed only start
after the confirmation of customers’ order quotations.

Figure 2. ETO main characteristics

1730 Carlos S. Fortes et al. / Procedia Computer Science 219 (2023) 1727–1734
4 Carlos S. Fortes/ Procedia Computer Science 00 (2022) 000–000

3.1. ETO main issues

According to Sjøbakk et al. [9], the concern for achieving better performance in this company type arises because
of a demand for increasingly customised products. The growing need to provide these customised products has
reinforced the interest in studying the ETO production strategy. Due to the variety of work at ETO companies, the
shop floor workflows are discrete, resulting in high managing demands [10]. As a result, higher decision-making
resilience to workflow performance is needed [11] [12]. Value chain information management is a challenge in the
ETO companies' dynamics environment at a tactical level [13]. In addition, the costs and delivery dates forecast
uncertainty at the contracting stage. The lack of collaboration creates barriers to information processing, resulting in
higher manufacturing costs [14], longer lead times, higher inventory costs, transportation costs and other supply risks.
Planning is a complex task due to the combination of the multiple departments or areas of technical responsibility, the
variability of lead times, and difficulties in predicting the workload of resources [15] [16]. Husejnagić & Sluga [10]
state that the customer can be involved in all project stages, such as design, production, assembly and testing [17].
During this workflow, it is common to have several interactions between the customer and those responsible for the
work in progress, defining and validating decisions taken during the manufacturing process. Therefore, customers can
define the product characteristics at an early stage and introduce changes during the project, which often results in
manufacturing process delays [18]. According to Gosling et al. [19, 20], late changes in engineering design can cause
costs to increase and will affect resource allocation along the value chain. This involvement of customers in the
company and the various interactions place a high demand on production planning and control activities [21]. One-of-
a-kind products (or low-volume batches) increase the number of jobs pending in manufacturing [22].

3.2. Technical and scientific solutions

Barbosa & Azevedo [11] state that the assembly phase is a long process, sometimes critical and highly variable.
While Hong & Leffakis [23] express great concern with customer demand variability as a level of incoherence or
volatility in which customers place orders with the company. The dynamics associated with them are due to the
numerous changes throughout the value chain, the complexity of the raw material flows, the number of parts related
to each final product, and the projects spread across all the company's departments [24]. Due to its unique nature, there
is no pre-existing design that allows how the production process will be, thus creating many product specification
uncertainties that have a massive impact on the bidding phase [12] [25]. Manzini & Urgo [26] argue that uncertainty
is an issue that affects project-based companies due to the complexity of the products and the level of customer
customisation. Demand volume uncertainty is related to new orders from the customer, i.e., forecasting people and
materials is a challenge when the company does not know the order start date. Manufacturing processes form
uncertainty from the difficulty in estimating the number of machines, materials and human resources when product
components are still unknown. When this happens, uncertain situations such as capacity, lead time and project costs
are difficult to predict [27]. It is difficult for ETO businesses to precisely anticipate the production schedule at the
contract stage [14] [16] [28] [29]. Issues such as lack of details in customer designs make it difficult to guarantee
delivery dates [21]. Customer projects have a high complexity at the product and process level, resulting in increased
costs and scheduling delays, forcing project managers to rethink their projects to resolve the issues. Due to one-of-a-
kind or complex product manufacturing and assembly, ETO companies are subject to several problems at different
value chain stages [22]. Centobelli et al. [30] propose layout change and a technological solution for the industrial
installation's feed system to reduce production time. However, the customer's constantly changes would result in a
layout replanning. Mourtzis et al. [28] present a mobile app for scheduling short-term job shops. This solution's
potential lies in a well-documented historical record of operations. Birki et al. [31] implemented a lean strategy to
assist performance in an ETO environment. Companies' performance may be different. Other evaluating references
are needed. Gössinger and Plitt [21] developed an optimization-based approach to order liberation to solve an
uncertain completion time issue. Model Reinforce to deal with information increases are needed. Villar-Fidalgo et al.
[14] used Kanban panels to manage PERT-CPM network activities during project execution. Brachmann and Kolisch
[1] suggested a novel mathematical approach to address engineer-to-order scheduling in tactical planning. Duda et al.
[7] used the Quick Response Manufacturing (QRM) concept to reduce the time needed to respond to order requests.
Micale et al. [16] developed a framework for the planning process at the tactical level. Li [29] developed a hyper-
heuristic improved genetic algorithm to handle a job scheduling issue. Lokkegaard et al. [32] developed a method for
 Carlos S. Fortes et al. / Procedia Computer Science 219 (2023) 1727–1734 1731
Carlos S. Fortes et al./ Procedia Computer Science 00 (2022) 000–000 5

identifying reference architectures in consideration of profitability. A tactical-level planning process framework for
the fulfilment process was developed by Shurrab et al. [33], as shown in Table 1.

Table 1. Systematic literature review approaches.

# Issues Approaches Contributions Weaknesses Year Ref.

Bid solution A multi-criteria approach to bid Provides bid solutions with
1 uncertain solution uncertainty accurate and timely replies.
Single case study with limited data. 2017 [25]
Bid solution Interactive bid solution Allows bidder's best solution Many decision criteria increase the
2 2021 [12]
uncertain evaluation selection. time consuming.
Capacity Tactical capacity planning with Improved tactical planning
3 Insufficient case studies. 2016 [27]
planning an optimisation model. decision-making.
Configuration Framework to identify and Complexity, engineering time Variables may affect the coding of
4 2017 [34]
process delays compare products’ similarities. reductions IT systems inefficient.
Design Extended the scope of research Limitations in large project
5 specification
A stochastic dynamic model.
on project scheduling. resolution
2017 [35]
Detail An optimization-based approach Extends MTO-specific order The basic model doesn’t consider
6 2019 [21]
specifications. to order liberation. release to ETO. information increases over time.
Frequent Design Science Research's Lean Combines lean efficiency and Needs dynamic and agile
7 2021 [18]
changes. Project Management approach. flexibility. approaches to real challenges.
Long lead Each design change would result in
8 times
Simio software simulation Costs reduction Short lead times.
replanning.
2016 [30]
Long lead Quick Response Manufacturing Hybrid architectures increase Requires a most organised use of
9 times (QRM) concept implementation. customer response. technology solutions.
2021 [7]
Low Implementation of the lean A greater extent of lean increases The need for more references to
10 2017 [31]
performance practice sustainability. evaluate performance.
Performance An integrated hybrid model for Optimizes system performance Special projects become more
11 2018 [11]
assessment performance evaluation. and selection. uncertain and difficult to assess.
Planning and Asaichi with visual control and Reduces unnecessary operations
12 Control management technologies. and increases efficiency.
Insufficient case studies. 2018 [15]
Poor workflow Real-time information sharing. Limited to box transportation due
13 visibility
RFID data collection system.
Costs reduction. to transponder fixture.
2014 [36]
Process A tactical-level planning process Forecasts potential medium-term The research focused on one order
14 2022 [33]
planning framework. capacity decisions. fulfilment procedure.
Production Help schedules location, due Multiple projects are scheduled
15 A commercial solutions 2021 [1]
planning dates, and resource availability. with limited resources.
Production Kanban panels to manage PERT- Single Kanban-managed task and
16 scheduling CPM software availability.
Practical applications are required. 2019 [14]
Project Lean project planning (LPP) and Allows the control planning The method should be tailored to
17 management. control framework. complexity analysis each company and project.
2019 [37]
Methodology to optimise ETO Time reduction. Several software The tools aren't integrated into the
18 Quotation 2019 [38]
product design. combinations. same design platform
A mobile application that The necessity for pre-existing and
19 Scheduling High-quality solutions. 2016 [28]
schedules short-term job shops. sufficiently documented cases.
Production planning method for a Provides four production
20 Scheduling
multi-project ETO. scheduling models.
Insufficient case studies. 2021 [39]
A model for regenerative It also covers machine NP-hardness, the problem size
21 Scheduling
scheduling. breakdowns or urgent orders. constrains the solution approach.
2021 [16]
A hyper-heuristic improved Algorithm efficiency and
22 Scheduling Restricted to large-size problems. 2022 [29]
genetic algorithm. practicality.
The batch size Reduces the input uncertainty on
23 Bayesian uncertainty modelling Restricted and slow data collection. 2017 [22]
uncertainty. cost estimation
A method for identifying Additional tests and an assessment
Unstructured It enhances customer solutions
24 knowledge
reference architectures under the
and reduces costs.
of the effects over a more extended 2022 [32]
consideration of profitability. period are needed.

Table 1 identifies the several issues and approaches resulting from SLR. With the information obtained, it is possible
to create clusters of issues, such as planning problems, capacity problems, lead time problems, and bidding and
scheduling solutions. Although some issues are shared between studies, the solutions proposed by the authors are
varied. One way to visualise these problem associations is through a concept map (figure 3) where the ETO companies
and their characteristics are in its centre. In the second ring, the issues are presented. In the third ring, the authors'
proposals and outside the last ring, their contributions and weaknesses.
This map will identify the problem area more intuitively and the studies’ weaknesses.
 1732 Carlos S. Fortes et al. / Procedia Computer Science 219 (2023) 1727–1734
6 Carlos S. Fortes/ Procedia Computer Science 00 (2022) 000–000

Figure 3. ETO concept diagram

 Carlos S. Fortes et al. / Procedia Computer Science 219 (2023) 1727–1734 1733
Carlos S. Fortes et al./ Procedia Computer Science 00 (2022) 000–000 7

4. Conclusion and Future work

In ETO companies, manufacturing and assembly activities require strict tactical and operational planning to ensure
compliance with delivery dates. This planning is challenging due to ETO companies being multi-project production
systems driven and constrained by capacity and delivery schedules, which means that resource shortages can
compromise operations and customer satisfaction. In addition, the workflow on the shop floor is strongly affected by
the high variability associated with the manufacture of one-of-a-kind components or in small production batches,
where the process plan of each component differs in its sequence, the operations, and the times associated with each
operation. Consequently, activities such as process planning, material requirements planning, capacity planning, task
sequencing and demand management are essential activities that companies should perform daily to meet customer
demands and to be consistent and sustainable in their competitive environment. The characteristics that define the ETO
production systems, their organisation and the competitive environment in which these companies operate were
provided in this LR. Several limitations of this study should, however, be highlighted. One of the limitations was the
fact that only articles from 2017 up to the present have been considered. However, this study refers to May 2022, and
since then other studies have been researching due to the importance of this matter. Challenges and issues that generate
barriers in the value chain and recommended solutions for their resolution or mitigation were identified. However,
new planning and management approaches are needed to enable companies to respond to workflow obstacles
resiliently. These approaches to achieve excellence in planning and management activities must consider the I4.0
paradigms to consider effective implementation technologies or tools that will support more efficient use of methods
or methodologies to support simultaneous decision-making in planning new orders, managing the workflow and the
use of resources. Techniques to model and support decision-making based on past, present (real-time), and future
forecasts about the available capacity are crucial in improving workflow resilience. Developments must be driven by
their ability to mitigate the most relevant identified difficulties. As further steps, the aim is to use the results of such
analysis to conceive, design and create a new approach or solution to be proposed. The new approach or solution
should focus on the resilience of the workflow in the ETO companies for efficient resource management and meeting
deadlines.

5. References

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