Published: April 01, 2025  Updated: March 28, 2025

Mastering Equipment Orders: Engineering Change Order (ECO) Process & Management

Nothing stays the same. Practices come and go. They evolve over time. Adjustments and improvements happen regularly. To make some changes more efficient, business uses the process known as an engineering change order (ECO). You may have heard it termed as an engineering change notification (ECN).

This article delves into the world of ECOs:

• What is an Engineering Change Order (ECO)?
• Steps in the ECO Process for Equipment Orders.
• Common Changes That Require an ECO.
• Challenges in the ECO Process and How to Overcome Them.
• Best Practices for ECO Management in Equipment Orders.
• Risks of Skipping Proper ECO Procedures.
• How a CMMS Streamlines Equipment Change Orders.

Q: What is an Engineering Change Order (ECO)?

A: A document authorizing alteration to a product's design, components, or manufacturing processes. It does the following:

• Acts as a central communication hub.
• Explains the details of the proposed change.
• Describes its rationale.
• Details the implementation plan.
• Discusses the impact on various stakeholders.

ECOs ensure controlled and coordinated modifications, safeguarding product integrity and regulatory compliance. Read on for further highlights on this.

Steps in the ECO Process for Equipment Orders

The ECO process typically follows a well-defined sequence:

Initiation: The need for a change arises. Why? The reasons vary.

Design flaws.

Customer feedback.

Material availability issues.

Regulatory updates.

An Engineer drafts an ECO outlining the proposed change and its justification.

Review and Approval: The ECO undergoes scrutiny by a Change Control Board (CCB). This cross-functional team comprises representatives from several departments. Engineering, manufacturing, quality control, and procurement.

This group assesses the change's impact on cost, schedule, functionality, and potential safety hazards. They may request adjustments or reject the ECO altogether if deemed unnecessary or impractical.

Implementation: Once approved, you're ready to go. This stage has several phases.

• Updating drawings.
• Building bills of materials (BOMs).
• Collecting manufacturing instructions.
• Rewriting or presenting any affected documentation.
• Procurement may need to source new materials or negotiate with vendors.
• Provide any required training for production personnel on new procedures.

Verification and Closeout: Upon implementation, verification ensures the change aligns with the ECO's specifications. Quality control measures confirm the modified product meets performance and safety standards. The final step involves documenting the closure of the ECO. This archives the change for future reference.

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Common Changes That Require an ECO

Let's detail the changes mentioned above. While the specific criteria may vary by industry, common reasons for ECOs include:

Design Changes: This happens frequently. Think of car model designs. Every year, many undergo style and design changes. For example, consider the longest-running continuous car model, the Chevrolet Suburban. The article provides a great discussion of modifications to the product's physical form, functionality, or materials used in its construction.

Process Changes: Alterations to the manufacturing processes. These include new assembly techniques, different equipment, or revised quality control procedures. Usually, this involves a move towards efficiency.

Material Changes: Switching to alternative materials due to cost fluctuations, supply chain disruptions, or performance improvements.

Documentation Updates: Corrections, clarifications, or revisions to existing technical documents. These include drawings, assembly instructions, or maintenance manuals.

Regulatory Changes: Many of these derive from safety issues. These measures could affect any or all of the aforementioned changes.

Challenges in the ECO Process and How to Overcome Them

Despite their importance, ECOs can encounter roadblocks.

Incomplete Information: A poorly drafted ECO lacking crucial details about the change, its impact, or implementation plan can stall the review process.

CCB Inefficiency: An overburdened or poorly-coordinated CCB can lead to delays in reviewing and approving ECOs.

Communication Gaps: Inadequate communication between departments (engineering, manufacturing, procurement) can create confusion and hinder the smooth execution of the change.

Technical complexities: Intricate instruction or procedures during implementation.

Material sourcing issues: Supply chain delays. Shortage of materials. Other delivery issues.

Unexpected cost implications: These might include extra shipping charges, fees, and other charges. Sometimes, between approval and actual implementation, prices or costs change.

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Best Practices for ECO Management in Equipment Orders

To ensure efficient and effective ECO implementation, you should follow several key principles.

Standardization: Develop and implement a standardized ECO form and process that everyone understands.

Clear Communication: Foster open communication between all involved parties for every step in the process.

Detailed Documentation: ECOs should contain precise information about the proposed change, its rationale, and its implementation plan.

Risk Assessment: Evaluate potential risks associated with the change and establish mitigation strategies. You might do this in the planning stage. Certainly, the Change Control Board should assess these.

Version Control: Maintain a clear version control system for documents and drawings affected by the ECO. This makes sure that everyone works with the latest revisions.

Risks of Skipping Proper ECO Procedures

While shortcuts might appear efficient, you risk further problems.

Safety Hazards: Bypassing proper review and testing during an ECO can introduce unforeseen safety risks into the product. This could lead to product recalls, injuries, and even fatalities.

Compliance Issues: Regulatory bodies often have strict guidelines for product modifications. You risk halting production and attracting hefty fines.

Quality Defects: Without a documented change plan and clear communication, the designer might incorrectly implement modifications. This leads to quality defects and production delays.

Increased Costs: All of the above and more significantly increase costs.

Customer Dissatisfaction: Ultimately, bypassing proper ECO procedures can lead to a compromised product that fails to meet customer expectations. This can damage brand reputation and customer loyalty.

How a CMMS Streamlines Equipment Change Orders

A Computerized Maintenance Management System (CMMS) enhances the efficiency and effectiveness of ECO management. Here's how:

Centralized Documentation: A CMMS provides a central repository for storing and managing all relevant documents, ECOs, drawings, and BOMs. Everything stays organized with easy access.

Work Order Management: The CMMS streamlines the creation and execution of work orders triggered by ECOs. Technicians receive clear instructions and updated part information. In turn, they have a smooth transition to the modified product or process.

Preventive Maintenance (PM) Updates: ECOs often necessitate adjustments to preventive maintenance schedules and procedures. With a list of PMs in the system, you can easily add more or adjust a current record.

Inventory Management: CMMS software tracks inventory levels of parts affected by the ECO. This helps identify potential stockouts and emergency purchases.

Change History Tracking: The system provides a comprehensive audit trail of all ECOs implemented. This historical data proves invaluable for future reference. It allows engineers to analyze the effectiveness of past changes and identify trends.

Reporting and Analysis: The CMMS offers plenty of reports with parameters so you receive only the data you want. ECO activity. Costs. Timelines. Approval rates.

Why ECOs Matter for Equipment Orders

By using a proper ECO system, you increase the chances for a successful altered, adjusted, or improved product. Following each step in the process keeps you organized, reduces risks, and lets you review each stage after completion.

With a CMMS, you have the added benefit of a database for your records. Easy access to documentation for when regulators visit. Data that you can pass along to other departments or programs such as an enterprise resource program (ERP).

For a world-class CMMS, call 800-922-4336 and ask a Mapcon representative to show you a free demonstration and discuss customization and integration. Mapcon. Powerful system. Easy to use. Priced right.