Engineering change order definition
/What is an Engineering Change Order?
An engineering change order authorizes design changes to a product. These changes affect the structure of a production design after it has been wholly or partially completed. An engineering change order is used to correct design errors, substitute less-expensive components, improve quality, and so forth. A number of change orders may be implemented over the life of a product. Someone managing inventory will want to time the release of engineering change orders so that existing raw materials that will be eliminated by the change will be used up before the change order takes effect.
The Engineering Change Order Process Flow
There are multiple steps that must be completed before an engineering change order can be fully enacted. We note these activities in the following steps:
Identify the correction needed. The engineering staff spots an issue that requires correction, such as as unexpectedly high cost, inaccurate specifications, or excessive warranty claims by customers.
Determine a course of action. The engineering staff must decide what the product fix will be, based on the issue found.
Develop a change order. The engineering staff creates an change order and related documents and drawings, which must be reviewed and approved.
Implement the change order. The change order is rolled out to all affected parties, with an effective date attached.