Problem – In India’s auto industry, late-stage Engineering Change Notices (ECNs) disrupt New Product Development (NPD), causing delays, cost escalations, quality risks, and strained supplier relationships. A significant number of ECNs often arise late in the cycle, when most should ideally be resolved during the design phase. Solutions – To address late-stage ECNs, the industry needs to adopt flow-based execution with early stakeholder convergence, including suppliers. This requires limiting Work-in-Progress (WIP), applying a triage approach to prioritizing workflows, and enforcing stricter gate controls. Tier-1 suppliers can take the lead in driving this shift. Benefits – These changes can reduce late-stage ECNs by 20%–30%, significantly cutting delays. Time-to-market can improve by 30%–50%, while 15%–25% more engineering bandwidth becomes available for innovation. Suppliers also benefit, with a 20%–30% reduction in rework and response times, and a 15%–25% improvement in overall efficiency.

Key Takeaways

Explore how Engineering Change Notices (ECNs) impact New Product Development in India’s auto sector, highlighting challenges, costs, and opportunities for faster, more innovative solutions through improved execution and supplier collaboration.

Multiplying ECNs: Time for auto industry to redefine the NPD playbook and end this game of snakes and ladders

Problem – In India’s auto industry, late-stage Engineering Change Notices (ECNs) disrupt New Product Development (NPD), causing delays, cost escalations, quality risks, and strained supplier relationships. A significant number of ECNs often arise late in the cycle, when most should ideally be resolved during the design phase. Solutions – To address late-stage ECNs, the industry needs to adopt flow-based execution with early stakeholder convergence, including suppliers. This requires limiting Work-in-Progress (WIP), applying a triage approach to prioritizing workflows, and enforcing stricter gate controls. Tier-1 suppliers can take the lead in driving this shift. Benefits – These changes can reduce late-stage ECNs by 20%–30%, significantly cutting delays. Time-to-market can improve by 30%–50%, while 15%–25% more engineering bandwidth becomes available for innovation. Suppliers also benefit, with a 20%–30% reduction in rework and response times, and a 15%–25% improvement in overall efficiency.

<h5>Multiplying ECNs: Time for auto industry to redefine the NPD playbook and end this game of snakes and ladders</h5>

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