In project-related production (engineer-to-order scenario), products are manufactured with reference to a sales order and an assigned project. The scenario is similar to sales-order-related production (MTO scenario), however, ETO with projects is usually used for complex and customer-specific production with regard to specific customer requirements. An example may be plant engineering, or if we want to stick with the bike example: a fleet of bikes with special requirements that are not currently included in the portfolio and need to be redesigned. One of the bikes in the fleet, for instance, is a new bike for very tall people.
Project-related production takes place after a customer placed an order related to a project, for instance for the new bike for very tall people for the project bike fleet. Such products are again called individual requirements materials. The controlling focus is lot-based on the ordered product quantity and the costs are collected and analyzed for that specific quantity. Thus, for project-related production product cost by order is used.
