Re-Engineering the Global Engineering Process

Client Context

A global supplier of engineered cooling systems for the power generation industry sought to optimize its global engineering process to increase competitiveness. Engineering costs were higher than competitors, leading to lost project bids, cost overruns, and delays.

After conducting an in-depth analysis, EFESO developed an ISO Engineering Policy and Procedures expected to reduce project-related engineering hours by 15-20% in Europe and 25-50% in China.

Key Challenges

• Lack of standardization in engineering processes across multiple sites.
• Decentralized design practices, leading to inconsistent component designs and inefficiencies.
• Project delays and penalties due to incomplete information flow between Sales, Project Management, and Engineering.
• Highly centralized management structure, making it difficult to oversee projects effectively across multiple locations.
• Missed deadlines and cost overruns, eroding profitability and creating interdepartmental conflicts.

Approach & Key Success Factors

To improve efficiency, lead time, and organizational structure, EFESO:

1. Conducted a full process analysis

   • Investigated engineering inefficiencies across sites and product groups.
   • Identified root causes of project delays and miscommunication.
   • Mapped engineering activities across Europe, China, and North America.

2. Developed a global ISO Engineering Policy & Procedures

   • Standardized best practices across all locations.
   • Clearly defined Engineering’s role in cross-departmental cooperation.
   • Established common technical standards to eliminate redundant design work.

3. Redesigned the Engineering Organization

   • Implemented self-directed workgroups aligned with engineering competencies.
   • Assigned group leaders and technology experts to oversee scheduling, tracking, and process improvements.
   • Shifted from a highly centralized structure to a collaborative, site-driven model.

4. Developed an implementation and training plan

   • Ensured adoption and acceptance by engaging impacted employees early.
   • Provided structured training to roll out new procedures and tools.

Results

Engineering efficiency

Improvements across global locations.

Design standardization

Reducing redundant work and cost overruns.

15-20%

Reduction in engineering hours at main sites in Europe.

25-50%

Reduction in engineering hours at the China facility.

$1-2 million

Expected cost savings from improved processes and resource utilization.