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MODERN SOLUTIONS IN PRODUCTION AND WAREHOUSING
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Brzeziński Ł. et al. (Eds.), Modern solutions in production and warehousing, Spatium, Radom 2019.
https://doi.org/10.17270/B.M.978-83-66017-87-0.4
Hubert Wojciechowski
Politechnika Poznańska
E-mail: hubert.wojciechowski@put.poznan.pl
Łukasz Hadaś
Politechnika Poznańska
E-mail: lukasz.hadas@put.poznan.pl
Filip Karaśkiewicz
Politechnika Poznańska
E-mail: filip.karaskiewicz@put.poznan.pl
IDENTIFICATION AND CHARACTERISTIC OF NECESSARY TASKS IN
IMPLEMENTING ENGINEERING CHANGES IN AUTOMOTIVE INDUSTRY
ABSTRACT
Background: This chapter is devoted to the identification and characteristic of necessary
tasks of implementing engineering changes in automotive industry. Each engineering change
commissioned by a customer need a specific set of tasks to be implemented successfully
in a company. Engineering changes affect especially these departments in companies:
engineering, production, quality, logistics, warehouse and maintenance. Each task has its own
rank and material scope. Identification and characteristic of necessary tasks of implementing
engineering changes have to include customer specific requirements, industry, engineering
and automotive industry standards. Complete list of tasks is required during planning,
organizing and controlling the process of implementing engineering changes.
Methods: Based on the in-depth interview with experts from different automotive companies
and results from survey let a list of necessary tasks of implementing engineering changes
in automotive companies be created.
Results: The list of necessary tasks of implementing engineering changes in automotive
companies include identification and characteristic of each task. Each task has been allocated
to departments, whose involvement is required for successful implementation of engineering
changes.
Conclusions: Project managers can use the list of necessary tasks of implementing
engineering changes in automotive companies as a type of a check-list. This will provide
project managers with wider view and fuller information during the processes of change
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management. Using this list can also be beneficent as a tool to prioritize tasks, because critical
path of necessary tasks of implementing engineering changes in automotive companies,
in most cases does not need all the task to be done before implementation. Some tasks can
be done in less occupied times.
Keywords: engineering changes, change management process, automotive industry.
INTRODUCTION TO IMPLEMENTING THE ENGINEERING CHANGES IN
AUTOMOTIVE INDUSTRY
The engineering changes is described in literature as “all kinds of activities aimed at the
process of using the company's available resources to obtain the proposed future state in the
course of negotiations with the client regarding the finished product” [Mikołajczyk 2003].
The engineering change in the product contains many components and does not only affect
management, but also organization, economics, technology, and even psychology and
sociology [Bartnicki 1998]. Change management is a separate, specialized management
method [Clarke 1997].
Figure 1. Interactions the product development process and the change process. Source: [Eger, Eckert, Clarkson, 2007]
The scope of engineering changes relates to human resources management, processes
with product and the product itself (fig.1). In automotive company those changes can affect:
Operations (e.g. logistics, production, after-sales)
Product lifecycle management (configuration management, collaboration & disciplines
integration, system engineering, modules & re-use, monitoring):
Local processes & tools (e.g. electrical, software, mechanical, processes, purchasing)
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External (e.g. suppliers, partners, subcontractors) [Urban-Galindo and Ripailles 2019.]
Based on literature analysis authors decided that engineering changes term in this chapter
will be understood as activities using company’s resources to fulfil customer needs
by changing and managing whole organization (product, process and people).
The authors, while conducting research using the method of in-depth structured
interviews, noticed that engineering changes require many different activities that are not
always product-related, but may relate to economic aspects in terms of the cost-effectiveness
of introducing a given engineering change. The sociological and psychological knowledge
of managers is also often used during employee training in order to quickly understand the
reasons for introducing a given engineering change by production employees. The scope
of strategic management is not taken directly into account when introducing engineering
changes in products in the automotive industry. However, it is included in negotiations
regarding the scope of implementation of a given change with the client.
Most often, an engineering change in a product is caused by external factors [Wirkus,
Roszkowski, Dostatni and Gierulski 2014]. Mainly in the automotive industry they are
customers who order such a change. Much less often there is a need to implement an
engineering change caused by internal factors, and even then, due to the specificity of the
automotive industry, such a change must be forwarded to the customer whose product the
change concerns. In the process of implementing engineering changes there are three main
stages: design, ordering & configuration and production planning & realization [Buergin et al.
2018]. Each company in automotive industry needs to be able to implement changes in
products. “It is crucial for companies to continuously introduce innovative products and make
variations to existing products to remain competitive in the market” [Rossini 2016]. This
ability is called changeability [ElMaraghy 2009]. There is also flexibility which relates to
implementing changes during assembly processes [Koren 2010]. The rate of product change
requests, based on Volkswagen AG data from 2010 – 2013 years, grow up by ~300% [Sivri,
Krallmann 2015].
In the general design, there is no specific and formalized template for change request
document, and in another template such document is set by the project team. Any change that
the customer would like to apply should be included in such an application [Wysocki 2005].
The change request itself initiates only the procedure of implementation engineer changes. All
steps of the change management implementation should be controlled. Controlling change
management steps in the project may be as follows:
"Integrated change control (communication with project participants),
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Formalized application registration procedure (some independent decision of the
project manager is allowed),
Classification of the application into one of the established categories (external,
internal, other),
Giving opinions on the application (project manager, change control committee,
experts),
Assessment of potential effects of changes (risk, costs, schedule, other consequences),
Assessment of possible solutions (causes, effects and conditions of modification),
Analysis of the impact of changes on the project (timeliness, costs, scope, quality),
Redefining project parameters (based on the analysis of budget deviations, schedule
and scope of work),
Presentation of the results of the analysis of the Change Control Committee
or Steering Committee (approval or rejection of the application),
Implementation and documentation of results (acceptance of modifications for
implementation or registration of rejection).” [Bukłaha 2012].
In the automotive industry, an engineering change is realised in accordance with the
customer requirements. A key document containing a number of information necessary for
making changes in automotive industry is Customer Specific Requirements (CSR). The CSR
document covers only the borders, in which supplier can move to fulfil OEM’s requirements.
CSR documentation does not determine the processes. [CSR: Daimler AG 2017, BMW Group
2017, Ford Motor 2017, General Motors 2019, PSA 2017, Volkswagen 2018, IATF 16949:
2016]. The formalized application registration procedure is recorded in CSR documents. The
material scope of changes in implementation the engineering change in the automotive
industry also consists in determining what elements of the process a given engineering change
will affect. To determine what will be affected in a company usually department managers,
product managers and client delegation need to create all of necessary tasks
for implementation the engineering change. Next step is to ask, for an opinion, all required
departments. This opinion is the basis for making a decision on the acceptance of the request
for engineering change. For changes proposed by the customer that cause increased costs,
the rates for a given finished product may be renegotiated. Solutions most often involve
a change or modification of the machine park, a change in the model design, or a decision
on what to do with the products before the change. After obtaining information on solutions,
company’s management can develop elements based on the potential effects of changes that
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will be affected by the change in the product. The results of the analysis can be used
to negotiate with the client to introduce additional entries in the request for engineering
change. Acceptance of the change for implementation causes distribution of tasks
to be performed by all required departments.
The specificity of the automotive industry in the field of implementing engineering
changes is particularly noticeable in terms of the deadlines set for introducing changes and the
speed of achieving satisfactory final results obtained after introducing the change in the scope
of the finished product delivered to the customer.
RESEARCH METHODOLOGY
The main goal of the research is to identify and characterize the necessary tasks related
to engineering changes in the automotive industry. To achieve this goal, the following
research methodology was subordinated. The methodology includes the following steps:
In-depth interview with experts with experience in implementing technical changes
in the automotive industry;
Preparation of the list of tasks, as well as the initial allocation to departments;
Preparation of a survey questionnaire, CAWI research;
Analysis of results of CAWI research,
Preparation of the final list with a brief description.
The first stage of the research was based on in-depth interview with experts with
experience in implementing technical changes in the automotive industry. As a result of the
work, a list of tasks was created, with an initial assignment of tasks to departments and
a specification of the material scope of each task. In the next step, a questionnaire has been
prepared to verify the list of tasks. The research was carried out using the CAWI method. The
list of tasks was verified by managers and senior specialists from the automotive industry
(from tier 1 suppliers, which work directly with OEM companies). Managers and specialists
verified the list of required tasks based on several years of experience in their own
departments involved in the process of implementing engineering changes. Finally, based
on analysis of results of CAWI research, final list has been prepared.
LIST AND CHARACTERISTICS OF EACH NECESSARY TASKS IN
IMPLEMENTING ENGINEERING CHANGES IN AUTOMOTIVE INDUSTRY
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In the following part of this chapter, there are 65 different necessary tasks in
implementing engineering changes in automotive companies identified and characterized.
Each task is also assigned to one of four main departments in automotive industry. Main
departments are: engineering, production, quality and logistics with purchasing. Each of these
tasks were consulted with corresponding chair of department.
Each task must have at least one main department and may need support from auxiliary
departments. Main department is defined as a leader for a task. Auxiliary department can
be asked to conduct certain operations for a selected task, but their role is not significant.
Departments in columns “main departments” and “auxiliary departments” are sorted
in descending order in terms of their degree of involvement in realised tasks.
Material scope of changes can be: product, direct process, indirect process,
organizational change, change of documentation. Material scope of the change during the
implementation of the activity can concern:
product (change of dimensions, functionality, product structure, material),
direct process (technological process of product processing, eg: plastic and thermal
processing, operations and assembly techniques),
indirect process (auxiliary process: transport, quality control, warehouse operations,
product and / or process identification),
organizational change (training, change in the structure of resources, change
of responsibility, work schedule),
change of documentation (development of new documentation, updating the database).
Engineering department is responsible for these tasks (table 1.).
Table 1. List of tasks from engineering department
Task
number
Name of task
Description
Main
departments
or customer
Auxiliary
departments or
customer
Material scope of
changes
1
Engineering Change
Notice (ECN)
Procedure Launch
Launching the procedure for implementing
the engineering change. Asking for an
opinion (assessment) members of the team
responsible for the product and process
affected. ECN is the initiation point for the
company after business agreement with
customer. ECN Procedure Launch is
assigned mainly to Engineering department.
Engineering
Quality
Customer
The head of
production
unit
Production
department
Product
2
Capacity check
Checking whether the introduced
engineering change will affect machine park
capacity. If yes it should be calculated in
business agreement.
Engineering
Not required
Direct process
3
Preparing 3D model
design
Preparing 3D model with change.
Additionally, check assembly environment if
there is no negative influence of parts
crashes, possible temperature, fluid,
electricity influence on environment.
Engineering
Not required
Product
4
Material change
Changing the material from which the
Engineering
Production
Product
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Task
number
Name of task
Description
Main
departments
or customer
Auxiliary
departments or
customer
Material scope of
changes
product is made. Notice that this change can
influence on parts dimensional stability and
need to go together with IMDS system
change according to IATF standards.
Quality
Customer
5
Part history log
Updating the history of all existing changes
(logs) saved and sending it to customer. All
changes need to be tracked and marked with
part number change, production and first
shipments to customer dates.
Engineering
Quality
Not required
Change of
documentation
6
Part revision change
Each engineering change should rise up
affected parts revision, Changing the part
number for production is given in the form
of an engraver, stamp, label or with any
other marking.
Engineering
Production
Quality
The head of
production
unit
Logistics
Maintenance
Product
7
BOM update
Update of the list of materials and
components (BOM) used for the production
of a given product. BOM correctness is very
important for inventory status in ERP
system. Every missed information may have
direct influence on inventorisation results.
Engineering
Production
Logistics
Change of
documentation
8
Updating the
information on the label
/ sticker / laserprint
If parts are tracked and mark with part
revision or production batch – this marking
should be updated.
Engineering
Quality
Production
Customer
Logistics
Warehouse
Indirect process
9
Updating 2D
documentation
All changes including dimensions,
tolerances, material, revision, marking etc
changes should be included in 2d drawing as
this document is a baseline for process
preparation. Also, drawings are usually a
baseline specification for external claims.
Engineering
Quality
Change of
documentation
10
Transfer of 2D
documentation to all
required departments
for expressing opinions
Sharing documentation with all affected
departments within the company.
Engineering
Production
Quality
The head of
production
unit
Change of
documentation
11
Change of the
machine/tools used for
producing the product.
Some engineering changes are forcing tools /
machines changes within machine park.
Engineering
Production
The head of
production
unit
Maintenance
Quality
Customer
Direct process
12
Modification of the
machine park/tools for
the purpose of
introducing an
engineering change.
Some engineering changes are forcing tools /
machines modifications that have to be done
before final production.
Engineering
Maintenance
Production
Direct process
13
Changing the layout of
machines on the
production floor.
Engineering Change might force to change
production line layout.
The head of
production
unit
Engineering
Production
Not required
Direct process
14
Checking the
production process in
terms of performance
and quality (Run &
Rate).
Final check of engineering change
performance in production process –
efficiency, quality and downtimes.
Engineering
Production
Quality
The head of
production
unit
Direct process
15
Developing process
sheet.
Machines, tools and other equipment setup
and parameters sheet created by engineers
during trials. This is base information for
shop floor workers to keep process stable.
Engineering
Production
Direct process
and change of
documentation
16
Packing
Changing the way of packing and
transporting products. Often it has to be
approve based on packaging and
transportation trials.
Engineering
Logistics
Production
Warehouse
Indirect process
17
Significant change in
labour intensity
Analysis of demand for human resources,
Methods Time Measurement - MTM
Engineering
Production
The head of
production
unit
Not required
Direct process
18
Update of production
parameters (cycle, Takt
time, lead time)
Update needs to be done both in documents
and machines.
Engineering
Production
Not required
Direct process
19
Development of the
Manual for production operators and
Engineering
Not required
Change of
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Task
number
Name of task
Description
Main
departments
or customer
Auxiliary
departments or
customer
Material scope of
changes
work instructions
technicians describing operations, correct
sequence and safety rules of performing
production process
documentation
20
Determining
technological
capabilities (machine
feasibility)
Engineers need to make sure that present
machine park is ready and able to produce
parts after EC.
Engineering
The head of
production
unit
Production
Direct process
21
Determining supplier
capabilities (supplier
feasibility)
If suppliers are involved in EC they need to
be verified in terms of feasibility and
capacity.
Engineering
Logistics
Quality
Indirect process
22
Performing tests after
the pilot batch
Depending on Customer requirements
specify tests need to be done to approve
implementation process.
Engineering
Quality
Not required
Direct process
23
Changing the shipping
label
Shipping label changes according to
engineering change.
Engineering
Logistics
Not required
Indirect process
and change of
documentation
24
Prototype making
change
If Engineering change requires to create
prototype parts before release it need to be
marked accordingly. It is a change of the test
/ trial part number not released into the
production process, usually in the form of a
label on part or packaging container.
Engineering
Quality
Logistics
Indirect process
25
PFD update (process
flow diagram)
This document is part of APQP and needs to
be prepared as a part of PPAP and part of
IATF requirement.
Engineering
Quality
Change of
documentation
26
FMEA update (analysis
of the types and effects
of possible errors,
Failure Mode and
Effects Analysis -
FMEA)
This document is part of APQP and needs to
be prepared as a part of PPAP and part of
IATF requirement. IATF is strongly focused
on risk analyses – FMEA as well. This
should be prepared in interdisciplinary
teams.
Engineering
Quality
Production
Change of
documentation
27
Changing patterns for
error checking - error
proofing samples (poka-
yoke samples)
Error-proofing is required by IATF
certification for all special characteristics
and process control. Before every production
run all control points should be checked and
confirmed as correctly working.
Engineering
Production
Quality
Not required
Indirect process
28
Checking the machine
availability in terms of
technology (machine
capacity) and
determining the
required buffer of parts
EC might enlarge production takt time/lead
times what will have influence of accessible
time.
Engineering
Production
The head of
production
unit
Direct process
29
Registration of a new
material supplier
according to norm
ISO9001
Registration need to be performed within
company database.
Engineering
Quality
Logistics
(purchasing)
Change of
documentation
30
Validation tests /
material certification
(Design Validation Plan
and Report - DVPR)
This is test showing if product design is
efficient and have no failures. Specific tests
are usually required by OEMs depending on
final part material, design and functionality.
Engineering
Quality
Not required
Indirect process
31
The way of using the
parts in stock buffer
before the change in
production (running
change, stock scrap)
Assessment whether after the engineering
change the inventory should be disposed of
before the change, or it can be used
Engineering
Logistics
Quality
Indirect process
32
Change / modification
of controls and
measuring devices.
Production is controlled by specific
measures and devices that may need to be
modified.
Engineering
Quality
Not required
Indirect process
Źródło: opracowanie własne.
Source: own work.
Production department is responsible for these tasks (table 2.).
Table 2. List of tasks from production department
Task
number
Name of task
Description
Main
departments
Auxiliary
departments or
customer
Material scope
of changes
1
Updating the plan of
This is a consequence of changing/adding
Maintenance
Engineering
Indirect process
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Task
number
Name of task
Description
Main
departments
Auxiliary
departments or
customer
Material scope
of changes
machine and tooling
inspections (Preventive
Maintenance Schedule
tools/ machines to factory production park.
Production
2
Preparation of work
instructions for spare
parts.
Every part number of final goods required to
have their spare part, which is sometimes
different by BOM or/and production process.
This need to be notify in special work
instruction.
Maintenance
Production
Engineering
Change of
documentation
3
Preparation and
training of machines
operators
Training of machines operators to work
according to new rules and instructions –
including new operations, work instructions
and new standards review.
Production
Engineering
The head of
production
unit
Not required
Organizational
change
4
Update of ANDON
system settings
(information exchange
in production
processes)
ANDON is a fast response system for
production control. System is usually
calculating line efficiency, scrap levels and
other production parameters so every change
need to be updated to collect correct
information.
Production
Engineering
The head of
production unit
Direct process
5
Determining the
amount of parts in
stock buffer before the
change is implemented
Often implementation the change request
process is forcing to shutdown production
lines and machines. For that reason, final
parts need to be produced on buffer.
Production
Logistics
The head of
production
unit
Engineering
Not required
Indirect process
Źródło: opracowanie własne.
Source: own work.
Quality department is responsible for these tasks (table 3.).
Table 3. List of tasks from quality department
Task
number
Name of task
Description
Main
departments
Auxiliary
departments or
customer
Material scope of changes
1
Update of the control
plan (Control Plan
document)
This document is part of APQP
and needs to be prepared as a part
of PPAP and part of IATF
requirement. Control plan is based
document for many audits in
automotive industry.
Quality
Engineering
Production
Change of documentation
2
Checking the
correctness of the
selected system and
measurement system
analysis (MSA)
Each measurement equipment
needs to be check if system
equipment + operator can be
metrologically efficient.
Quality
Engineering
Not required
Indirect process
3
Development of
incoming inspection
instructions
Change of the inspection plan on
the supply control (frequency, type
of control)
Quality
Engineering
Not required
Indirect process
4
Development of quality
inspection instructions
Change of instructions according
to which the measurement of the
product is to be made
Quality
Engineering
Not required
Change of documentation
5
Development of visual
inspection instructions
Change of instructions on
checking the visual aspects of the
product
Quality
Engineering
Not required
Change of documentation
6
Development of quality
control charts
Control of special characteristics
of the product (e.g. weight,
functional dimension)
Quality
Engineering
Production
Indirect process and change
of documentation
7
Report of visual
inspection of parts
produced after the
change (Appearance
Approval Report -
AAR)
Document that customer approves
visual parts appearance.
Quality
Engineering
Indirect process
8
Part approval by the
customer (Production
Part Approval Process -
PPAP)
Final package of documents, often
including final goods physically
that is presented to customer and
needs to be approved.
Quality
Engineering
Customer
Not required
Change of documentation
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9
Rating of Customer
Special Requirements
(CSR)
Engineering change needs to be
verified if it doesn’t violate CSR.
Quality
Engineering
Not required
Change of documentation
10
Updating the IMDS
(International Material
Data System) database
Global database for materials
specifications with assignation to
companies.
Quality
Engineering
Not required
Change of documentation
Źródło: opracowanie własne.
Source: own work.
Logistics department is responsible for these tasks (table 4.).
Table 4. List of tasks from logistics department
Task
number
Name of task
Description
Main
departments
Auxiliary
departments or
customer
Material
scope of
changes
1
Receival of materials and
components
Delivery of goods required for test batches,
proto runs and Run&Rate production.
Logistics
Warehouse
Not required
Indirect
process
2
Receival of components
and materials for the trial
series.
It is about making sure that new components
are in the factory ready to use for first
production run after change.
Logistics
Engineering
Not required
Indirect
process
3
Change location of
inventory
Change location of inventory (components,
materials and finished products) in the
warehouse (for parts before and after
engineering change)
Logistics
Warehouse
Not required
Indirect
process
4
Change of destination for
shipments of final
products
EC may open new target destination for final
goods – this has to be verified and plant needs
to be prepared for incoming/shipments
schedules change.
Logistics
Not required
Indirect
process
5
EDI upgrade for customer
orders (Electronic Data
Interchange)
EC force to rise revision of final goods, and
this need to be clearly stated in orders ass
well. Customer should inform from what date
new revision is required.
Logistics
Customer
Indirect
process
6
Implementation of
assumptions regarding the
preparation of a safety
stock
Meaning realising scheduled production plan
and additional needs
Logistics
The head of
production unit
Engineering
Indirect
process
Źródło: opracowanie własne.
Source: own work.
CONCLUSICE REMARKS
Created list of necessary tasks in implementing engineering changes in automotive
companies is a useful tool for managers. This list can take a role of a checklist that can come
in handy for engineering changes management.
In practice of specific company from the automotive industry, both the list of tasks and
the allocation to individual departments may be partly differ. The main reasons for the
differences may be:
specificity of offered products (including their technical complexity),
scope of engineering changes,
various organizational chart and department names.
The aim of the authors of the chapter was to develop a list of largely universal, which can
be adapted to the any conditions of the company from automotive industry.
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ACKNOWLEDGMENTS
This chapter was funded by the Poznan University of Technology, Faculty of
Engineering Management [project number: 11/140/SBAD/4168].
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