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An engineering change order (ECO) is central to how hardware companies manage changes to established product designs. Market events, customer feedback, field issues, and new competitors can all require teams to adapt products. The potential impact of product issues can be significant: across five U.S. industries, companies recorded 3,295 recalls, while the number of defective units rose 26% to 858 million.
Managing these updates requires a clear, structured process. Engineers need to understand the scope of a change and communicate it to the rest of the organization.
While companies use different types of change orders in product development and manufacturing, an ECO is the most common way to approve changes to an established design baseline. It ensures every relevant team member can review the proposed changes, provide feedback, and approve them.
This article discusses engineering change orders in more detail, explains what they entail, and offers tips for creating an efficient engineering change management process.
Key Takeaways
- An ECO controls a proposed design change that affects form, fit, or function. It records the reason, affected items, impact, approvals, and effectivity before implementation.
- ECOs govern product design changes. MCOs cover manufacturing processes, while DCOs handle minor document updates that do not change a component’s revision or status.
- ECOs typically move through seven stages: identify the need, investigate it, create the order, review it, approve it, notify stakeholders, and implement the change.
- Large or incomplete ECOs take longer to review and are more likely to be rejected. Limiting each order to a single defined change makes it easier to find and correct missing information.
- A centralized PLM system keeps BOMs, drawings, approvals, and effectivity details connected to the ECO. Automatic notifications also tell each approver when they need to act.
What is an Engineering Change Order (ECO)?
An engineering change order is a formal process for reviewing proposed changes to an established design baseline that affect form, fit, or function. At minimum, an ECO lists the affected components and explains why the changes are needed.
An ECO may also include redlined drawings, inventory disposition instructions, and part-effectiveness information. Relevant team members then review the proposed changes, provide feedback, and approve them before implementation.
An established engineering change order process ensures that teams evaluate and approve changes before implementation. The ECO also creates a record for compliance reviews and root cause investigations after a product enters production.
A complete ECO usually includes the following information:
- Change identification details: A unique ECO number, title, submission date, change owner, and current approval status identify the change and distinguish it from other requests.
- Description of the proposed change: A clear summary explains what the team plans to modify. Supporting drawings or documents provide the technical details reviewers need.
- Reason for the change: The ECO explains what prompted the change, such as a design issue, an obsolete component, a supplier change, cost reduction, or a new requirement.
- Affected parts, assemblies, and documents: A complete list identifies every part number, assembly, BOM, drawing, specification, and work instruction that requires an update.
- Impact assessment: The review determines how the change could affect product performance, cost, inventory, tooling, production schedules, quality, and regulatory compliance.
- Required approvals and sign-offs: The ECO identifies which representatives from engineering, quality, sourcing, manufacturing, or other teams must approve the change.
- Implementation and effectivity details: The ECO states when the change takes effect and which serial numbers, lot numbers, production runs, or product revisions it applies to.
Other Types of Change Orders
There are other types of COs besides ECOs, most notably manufacturing change orders (MCOs) and documentation change orders (DCOs). These types of change orders are similar to ECOs, but carry differences in both intent and execution.
Manufacturing Change Orders (MCOs)
An MCO is typically initiated by the manufacturing team rather than the engineering team. It is used for process or documentation changes, rather than for changing the design of a part, assembly, or product.
For example, a production team might use an MCO to submit process improvements when an existing process is inefficient.
If there are changes required to both the design and the manufacturing process, an MCO will be submitted to the appropriate teams for review alongside an ECO.
Document Change Orders (DCOs)
- A DCO is used to update or otherwise change documents associated with a product or component, such as fabrication drawings, protocols and procedures, or written instructions.
More minor changes, such as adapting work order instructions or editing a typo in a document, typically go through a DCO rather than significant design changes. A DCO follows the same approval process as an ECO or MCO, but the component revision values are not incremented, and the components’ status is not altered.
Learn how Duro PLM can help you establish best practices for your change order process by hardware organizations streamline their change order process. Schedule a demo.
Change Order Type | Initiated By | Purpose |
ECO | Engineering | Design changes affecting form, fit, or function |
MCO | Manufacturing | Process or documentation changes to manufacturing |
DCO | Either team | Minor document updates (no revision change) |
What's the Difference Between an Engineering Change Request (ECR) and an Engineering Change Order (ECO)?
An engineering change request (ECR) is another common change management process that precedes an engineering change order (ECO). ECRs are used to document the initial request or suggestion to address a design problem. Similar to an ECO, an ECR would contain a list of the components that would be impacted and the reasoning behind the requested changes.
It’s often feasible to combine the ECR and ECO processes, as the ECR can be seen as redundant for certain organizations. PLM software like Duro runs a single engineering change order process that merges the concept of the ECR into the ECO process. For those organizations that absolutely need a separate ECR process, integrations to tools like Jira provide a nicely integrated ECR step.
How Long Does an Engineering Change Order Take to Process?
The time it takes to process an ECO depends on the complexity of the change, the number of people involved in the approval process, and the maturity of your processes. The median ECO cycle time is 7 days, although individual changes may move faster or take longer depending on these factors.
The software you use to manage ECOs can also affect the time required to process them. Product lifecycle management platforms can help streamline your ECO process and enable you to achieve resolutions quickly and consistently.
PLM platforms like Duro use pre-established workflows that make it simpler and faster to process an ECO and ensure relevant team members are alerted when they need to take action based on a proposed change.
Duro can also help ensure that all the necessary information for a CO is surfaced easily, preventing delays and enabling more agile workflows. Incomplete ECOs are likely to be rejected, potentially causing delays in production. Using a PLM-based ECO process reduces rejection rates and speeds up approval of product changes.
The 7 Stages of the Engineering Change Order Process
An engineering change request usually goes through seven different stages before it is approved and implemented. Make sure you take the right steps to increase the chances that your COs include complete information, can be easily interpreted by all parties, and that resolution is achieved quickly.
1. Identifying the Need for an ECO
The first part of the ECO process is the identification stage. Here, the need for an engineering change order is identified, potentially due to a design error or a flaw in the engineering or product development processes that went unnoticed previously.
2. Investigating the Need for Change
Once the need for an ECO is identified, the change needs to be investigated. This helps determine the scope and severity of the change and examines the potential impacts that it could have on other components or products. You’ll uncover the possible repercussions of the change and the actions that might need to be taken.
This step is often captured in an Engineering Change Request (ECR), but it may also be incorporated into the initial stage of an ECO, depending on your organization’s requirements.
In a separate ECR document, the proposed change is evaluated for feasibility and potential impact. This includes identifying affected parts, components, and other documents that would need to be changed if approved. The ECR might also include estimated costs, required resources, and materials needed to implement the change.
3. Creating the Engineering Change Order
An engineering change order lists all parts, assemblies, items, or documents (such as drawings and designs) that need to be changed to complete the order. The more detailed the descriptions, the better, as they will help other people understand the full impact of any change.
Other things noted in the CO may include:
- CAD files
- Fabrication drawing
- Work instructions
- Disposition codes
4. Reviewing the Engineering Change Order
A change control board is responsible for reviewing ECOs and determining whether the proposed change is ready to move forward. Reviewers typically assess the technical impact of the change, affected parts and documentation, implementation requirements, costs, inventory implications, and any potential impact on production or suppliers.
This stage also allows stakeholders to identify missing information, request revisions, or flag downstream issues before the change is approved.
5. Approving the Engineering Change Order
Once the review is complete, the appropriate stakeholders will approve or reject the ECO based on the supporting documentation and proposed implementation plan. If revisions are required, the ECO may be returned to the engineering team for updates before being reviewed again.
Once approved, relevant teams are notified that the change can be implemented. The approved ECO then serves as the formal record of what changed, why it changed, and who authorized the change.
6. Notifying Relevant Stakeholders
The approved CO will be communicated to teams that need to understand the approved engineering change and its impact. This stage is often captured and documented in an Engineering Change Notice (ECN).
Whether you use an ECN or notify relevant stakeholders through a separate channel, approved changes must be disseminated effectively to avoid miscommunication or unintended consequences.
7. Implementing the Change
Once the changes specified in an approved CO have been communicated across teams, the implementation plan must be carried out. This plan is typically defined within the CO and may include instructions for inventory disposition, part effectivity, and any other actions required to put the change into production.
Engineering Change Order Benefits
While the engineering change order process might sound complicated, a well executed process will ensure that your product development efforts stay on track and that stakeholders are on the same page. The following are among the important ways in which a well designed ECO process can benefit your organization.
Keeps Product Development on Track
Product development is all about advancement and improvement. If there is a more efficient way to do a task or process, then it needs to be addressed to:
- Keep product development on track.
- Ensure that you are competitive with other companies.
- Enable continuous product and process improvement.
COs are an important step in evolving your products. The more streamlined the process, the faster you can increase quality and get your products to market.
Reduces Errors, Delays, and Bottlenecks
Product design flaws can lead to serious issues, including delays, production bottlenecks, and even product failures. These issues can impact your customer satisfaction levels and damage your business’s reputation.
It’s essential to reduce and resolve any product issues as early as possible. ECOs are essential to ensure you rapidly address any product design issues and keep your business on a sure footing.
Maintains Clear Records of Any Changes
It’s essential to maintain a clear record of document changes so you can easily return to a product baseline or a specific point in time. You might need to review specific steps in the production process or revert to a previous design.
In addition, these steps are often required for compliance to get products approved for the market. ECOs provide access to the necessary design history log, with details of who made each change and why.
A convoluted or poorly documented process can lead to major complications when it’s time for internal reviews, quality checks, or even new employee training.
Ensures Stakeholders Have Bought into the Change
Making changes in any area of a business without stakeholder buy-in often leads to problems. By involving the right team members in the ECO process, you ensure that they are aware of any changes and will support the implementation at the end of the process.
This is particularly important for communicating changes to procurement and manufacturing teams. They need updated information on which parts to order and how to adjust their manufacturing workflows to account for existing resources.
Engineering Change Order Challenges
While there are many benefits of ECOs, there are also challenges to be addressed. Here are a few of the most common problems that can arise while creating an ECO.
Relying on a single author to carefully document everything
Engineering changes need to be well documented. Because not every team member will have access to the CAD software (which usually requires an expensive license) or understand the design adaptations, this documentation typically falls to a single person.
If there are no standards in place, the individual responsible for a change needs might not write up complete notes or miss a step. Managing this documentation and setting out clear outlines for what should be included eliminates the likelihood of common issues incurred when relying on a single author, such as:
- Typos or misinterpretations
- Accidental information omission (resulting in incomplete sections of the ECO)
- Shorthand that make the author’s notes hard to interpret
Not Understanding the Full Impact of a Change
Having visibility and traceability into a change is an important part of the ECO process. When your data is disparate and not centralized, it can be difficult to take a step back and consider everything that will be changed and why.
A small change to a single component could affect other products that use it. This ripple effect might not always be readily apparent when the change is initially made, but it can lead to unexpected production issues later.
Delays in Approvals
The sheer number of people needed to approve forms and gain access to documents can also cause a delay. This is especially true if you need to access multiple chains of command who start at square one in understanding each request.
If you don’t have a standard process, you might also risk accidentally leaving people off the approvals list. With a PLM system, approvers receive automatic alerts to remind them to review or approve a change. This significantly speeds up the approval process, thereby shortening overall production timelines.
Risk of Changes Not Being Approved
Thorough documentation practices are essential when creating and executing COs. However, they can be time-consuming, and there’s a chance key information will be missed. If key details are accidentally excluded, a change might get rejected, dragging the process out even further. This is a major risk to businesses, as it leads to missed timelines and lost revenue.
Opting for a PLM system like Duro gives businesses a better way to handle documentation, helping to reduce the frequency of rejected ECOs and leading to more consistent approvals.
Engineering Change Order Best Practices
The following best practices can help organizations avoid common delays, errors, and communication gaps during the engineering change order process.
Keep Change Orders Clean and Manageable
Having a clear scope of what your CO covers and ensuring the request size and volume are manageable helps speed up the change management process.
When making a change, it might initially seem like a good idea to merge multiple functional updates or include other processes or product development changes in the same CO.
However, this adds unnecessary complexity and increases the odds of rejection. After all, if just one part of a complicated CO has an error, the entire ECO will be impacted.
Instead, break changes into granular modules to make them easy to understand and speed up the review process.
Keep Documentation Consistent
Having repeatable processes and standardized documentation templates are key components to a successful ECO process. Consistency is also key to ensuring everyone understands the changes and their involvement.
A PLM platform like Duro can help centralize product requirements documents (PRDs) and CAD design information. Standard policies and templates encourage consistency and completeness of information. Automating information transfer across systems or using approval templates can help speed up ECOs.
Use a Centralized PLM System
Store engineering change orders in a centralized PLM system rather than managing them across emails, spreadsheets, shared drives, and separate design tools. A shared system gives each reviewer access to the current product data and supporting documents.
Centralized records also help teams trace how a proposed change affects BOMs, parts, assemblies, drawings, and existing inventory. Once the ECO is approved, engineering and manufacturing teams can refer to the same revision and effectivity details.
The PLM system also preserves the change history. Teams can see what changed, why it changed, who approved it, and when the new revision took effect.
Define Clear Approval Workflows
Determine who must review each type of engineering change order before the team submits it. The approval list may include representatives from engineering, quality, sourcing, manufacturing, compliance, or other affected teams.
Assign each person a clear responsibility and specify whether reviews occur in sequence or simultaneously. This structure prevents teams from omitting a required approver or from sending the ECO to someone who does not need to review it.
Set expectations for review times and use notifications to alert approvers when action is required. If someone rejects the ECO, require a specific explanation so the author knows what to correct before resubmitting it.
Streamline ECO Processes with Duro
The right software will go a long way in helping you submit and complete engineering change orders in a way that doesn’t slow your team down. Duro offers product lifecycle management software designed to accelerate your internal ECO processes.
To learn more about Duro’s PLM software and how it can take your business to the next level today, schedule a demo. You’ll be able to see for yourself the many ways in which Duro can improve your processes and increase your success as a hardware organization.
Engineering Change Order FAQs
What is the Purpose of an Engineering Change Order?
An engineering change order provides a controlled process for reviewing, approving, and implementing a product change. It documents what will change, why it is needed, and which parts, drawings, BOMs, or instructions it affects. The ECO also creates a traceable record for future audits and investigations.
Who Approves an Engineering Change Order?
Approval requirements depend on the type and impact of the change. Engineering typically reviews the technical details, while representatives from quality, manufacturing, sourcing, or compliance assess their respective areas. The company’s approval workflow determines who must sign off before implementation.
What's the Difference Between an ECO and an ECN?
An engineering change order (ECO) documents a proposed change and moves it through review and approval. An engineering change notice (ECN) communicates an approved change to the teams responsible for implementing it. Some companies use these terms interchangeably, so the exact meaning depends on the organization’s change process.
How Do You Write an Effective Engineering Change Order?
Write an ECO with a clear scope that explains what must change and why. Identify every affected part, assembly, BOM, drawing, and instruction, then document the impact on cost, inventory, production, and compliance. Include supporting files, required approvals, and effectivity details so each team knows what to review and when to implement the change.