Abstract
Contract manufacturing according to the Engineer-to-Order (ETO) principle with subsequent installation on-site is particularly common in the capital goods industry, plant engineering, and construction industry. While components or sub-assemblies are manufactured in the factory and pre-assembled, the completion and installation is usually performed on-site. The planning and production processes in the factory are often not or only poorly synchronized with the processes at the site, leading to inefficiencies in the supply chain. In this article, an approach for an efficient design of the entire ETO value stream according to lean principles is presented, which is based on a customer-demand-driven order processing from planning to production in the factory to the installation on-site. This approach has been tested in practise in collaboration with an Italian facade manufacturer.