Barriers and challenges to improve interfunctional integration between Product Development and Production Planning and Control in Engineering-to-Order Environment

Abstract Interfunctional integration is indicated by several studies as an alternative to increased operational excellence, improving organizational performance through improved interaction and collaboration in organizational processes. The focus of this paper is to present and discuss barriers and challenges to improve interfunctional integration between Product Development (PD) and Production Planning and Control (PPC) in production systems that adopt the strategy of response to demand Engineering-to-Order (ETO). To reach that goal, we used a literature review on the topics of interest and findings obtained from the case studies of three large metal mechanical companies that design and manufacture customized-made capital goods. The following were observed as main results: barriers and challenges related to the interaction between functional areas during the process of order fulfillment, and the need for actions that seek to improve the interaction and collaboration between PD and PPC, taking into account the peculiarities of the ETO environment.