Engineering projects, processes, systems, and organizations have all become drastically more complex. Consequently, the process of managing changes in those projects, processes, systems, and organizations has also become drastically more complex.
There’s no sign that this trend will reverse — or even slow down — anytime soon. If your change management procedure still involves modifying sheets and drawings one at a time, you’ll quickly find yourself behind the curve.
Here are nine statistics that prove you need better change management:
- Frequent design changes and changing design requirements are the top two engineering design challenges, identified by 39% and 34% of engineers, respectively.
- Engineering change orders account for one-third to one-half of engineering capacity and 20 to 50% of tool costs.
- McKinsey & Company estimates that an efficient change process can reduce product development cycle time by up to 33%.
- According to Gartner, 54% of companies don’t have a centralized repository to track product changes.
- 85% of the respondents in an Aberdeen Group survey said their change management system is broken.
- Best-in-class (top 20%) companies are more likely than their competitors to have a formal change management process, a formal change implementation plan, and a change process that is coordinated across the supply chain.
As a result, these companies achieve:
- 18% reduction in overall product cost,
- 10% reduction in time to execute a change order, and
- 15% reduction in change orders after release to manufacturing
Are you ready for better change management?