In repetitive manufacturing, it’s possible to apply statistical process control (SPC) techniques to purchased components and manufacturing quality as well as scrap and yield. Statistical analysis is acceptable if a company mass-purchases or mass-manufactures the same product to the same standards every time. The essence of engineer-to-order (ETO) is building a unique complex product every time. There may be components that are common from one machine to another, but not in the same quantity as a repetitive manufacturer.In the ETO world, the cost of poor quality can be very high. The cost of rework to replace an item in a complex assembly and the warranty costs resulting from equipment failure can have a serious negative effect on profit margins. In an ETO environment, quality must be part of the entire process, and not just part of purchasing and manufacturing—the typical focus of a repetitive manufacturer.

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