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Managing the process of engineering change orders: the case of the climate control system in automobile development (RV 97/116/TM)

Author: Loch, Christoph H. ; Terwiesch, ChristianINSEAD Area: Technology and Operations Management Series: Working Paper ; 98/31/TM (revised version of 97/116/TM) Publisher: Fontainebleau : INSEAD, 1998.Language: EnglishDescription: 17 p.Type of document: INSEAD Working Paper Online Access: Click here Abstract: Engineering change orders (ECOs) are pat of almost every development process, consuming a significan part of engineering capacity and contributing heavily to development and tool costs. Many companies use a support process to administer ECOs, which fundamentally determines ECO costs. This administrative process encompasses the emergence of a change (eg., a problem or a market-driven feature change), the management approval of the change, up to the change's final implementation. despite the tremendous time pressure in development projects in general and in the ECO process in particular, this process can consume several weeks, several months, and in extreme cases even over a year. Based on an in-depth case study of the climate control system development in a vehicle, the authors identify five heys conributors to long ECO lead times: a complex approval process, snowballing changes, scarce capacity and congestion, set-ups and batching, and organizational issues. Based on the case observations, they outline a number of improvement strategies an organization can follow to reduce its ECO lead times. Previous title: Managing the process of engineering change orders: the case of the climate control system in automobile development - Terwiesch, Christian;Loch, Christoph H. - 1997 - INSEAD Working Paper
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Engineering change orders (ECOs) are pat of almost every development process, consuming a significan part of engineering capacity and contributing heavily to development and tool costs. Many companies use a support process to administer ECOs, which fundamentally determines ECO costs. This administrative process encompasses the emergence of a change (eg., a problem or a market-driven feature change), the management approval of the change, up to the change's final implementation. despite the tremendous time pressure in development projects in general and in the ECO process in particular, this process can consume several weeks, several months, and in extreme cases even over a year. Based on an in-depth case study of the climate control system development in a vehicle, the authors identify five heys conributors to long ECO lead times: a complex approval process, snowballing changes, scarce capacity and congestion, set-ups and batching, and organizational issues. Based on the case observations, they outline a number of improvement strategies an organization can follow to reduce its ECO lead times.

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