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CHANGE PROCESS

Professional External and Internal Change Management for an Interior Supplier

 Case Focus

  • Profit increase

  • Implementation of a structured process

DA Icon_1024x1024px_Light Blue-White_RGB Modules

 Icon_ICO_Change Change

 Icon_ICO_Price Price

 Icon_ICO_OTP One-Time-Payments

 

Background

An interior supplier faced significant challenges due to the lack of a structured change management process. In some cases, there was no change management at all, which had an extremely negative impact on project profitability.

 

Challenges

  • Lack of Structured Process: Absence of a systematic approach to change management.

  • No Structured Process for ECRs: No structured change process for engineering change requests (ECRs).

  • No Internal Optimization Process: No process for internal cost optimizations (target costing) and quality improvements.

  • Negative Impact on Profitability: Unmanaged changes severely affecting project profitability.

  • Inefficient Project Management: No due dates, approvals, or evaluations leading to project delays and cost overruns.


DA Icon_1024x1024px_Light Blue-White_RGB Solution


Digital Automotive Change Management provided a comprehensive solution to build a structured change management process, including:

  • Digital Change Process Implementation: Established a digital change process encompassing project management with due dates, approvals, and evaluations.

  • Pricing and Cost Management: Calculations, cost and price informations are now transparently organized.

  • One-Time-Payment Management: All reimbursements, and investments for tools and other expenses are systematically managed.

  • Customer Change Requests: Professionally managed engineering change requests (ECRs) and change orders (COs) from customers.

  • Internal Optimization: Focused on internal cost optimizations and product quality improvements.

  • Change Steering: Implemented project management steering with status updates, due dates, approvals and profit reports.

  • Comprehensive Change Overviews: Provided detailed overviews of changes for better project management.

  • Integration with Price and Cost Tracking: Transferred data to price and cost tracking lists.

DA Icon_1024x1024px_Light Blue-White_RGB Results

  • Turned Loss-Making Projects into Profitable Projects:

    • Achieved profitability through effective external change management with a profit focus

    • Target Costing: Implemented target costing to enhance cost efficiency.

  • Profit-Driven Project Culture: Cultivated a culture of profit-focused project management.

  • Professional Management of External Requests: Customer satisfaction increased by quoting changes in time.

  • Enhanced Internal Optimizations: Improved internal cost and product quality optimizations through the digital system.

 

 

 

By leveraging Digital Automotive's Change Management solutions, the interior supplier transformed its project and sales management into a structured, profit-focused system, significantly improving project profitability and efficiency.

 

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