Oracle Bill of Materials – Engineering Change Order (ECO):

Oracle Bill of Materials – Engineering Change Order (ECO):

What is an Engineering Change Order (ECO)?

Oracle Engineering Change Order (ECO) is an authorization order to implement changes to items, BOM & routings normally
through a revision. Several changes can be grouped under one ECO.
Engineering Change Orders (ECOs) enables to control new item revisions and bill of material changes. ECOs are numbered
documents that is used to track product changes within the Engineering Change
Management system. After have tested and approved an ECO, ECO can implement it and modify your standard product or process.
Product or process changes can impact many areas within a company, including: Customer service
Tooling Standards Suppliers
Master production schedule Product cost
Service parts Inventory Plant layout

Types of Engineering Change Order (ECO) Approval Process:

Standard Approval process:

When an ECO type is assigned with this workflow, all ECOs of this type launch this approval workflow when submitted for approval. The
approval list identified on the ECO is used as the list of stakeholders. However, when ONE of these stakeholders approve their
notification, the ECO gets approved without waiting for the rest of the approvers to approve the same.

ERES Approval process:

This is an Electronic record and Electronic signature based approval workflow. Here, the approval of the notification requires the
stakeholder to electronically sign using their logon credentials. In other words, only EBS users can be used in the list here. Also, different
from the Standard approval workflow, this approval process waits for all stakeholders to complete approving their notifications before the
ECO gets to approved status. If anyone rejects, the ECO gets rejected.

Voting approval process:

This is similar to ERES process in which all stakeholders need to respond but the ECO is not rejected when anyone rejects it.
However, the majority wins (More approvers=ECO approved).

Engineering Change Order – Setup Steps:

Prerequisites: Employee Creation, Inventory, Purchasing, Engineering & BOM Setups

1. Create Approval List

2. Create Change Reasons
3. Define ECO Auto Numbering
4. Define ECO Priorities
5. Define ECO Change Types
6. Set Profile Options
Implementing Engineering Change Order Flow with a Standard Approval Process:
Here for an example, let us consider a Parent Bill consist of Child Bills and the Child Bills consist of individual
Parts.

Parent Bill as “B 100 – Galaxy Grand” consist of

S no Part Number Description

1 B 101 Panel Assy

2 B 104 Flip Cover

3 B 105 Mother Board Assy

Child Bill “B 101 – Panel Assy” consist of

S no Part Number Description

1 B 102 Back Panel

2 B 103 Back Panel

Child Bill “B 104 – Flip Cover” consist of

S no Part Number Description

1 B 120 Flip Cover OSP

Child Bill “B 105 – Mother Board Assy” consist of

S no Part Number Description

1 B 106 IC Chip

2 B 107 Memory Card

3 B 108 Screw

4 B 109 Key Pad

ECO Creation Process:

To implement an ECO to replace the part number B 110 instead of B 109 (Key Pad) in the Child Bill – B 105.

Navigation:
Engineering > ECOs > ECOs

Define all the fields in the ECO Form & Click Revised Items Button

Define the Parent Part number details in the Item Details Tab & define the revision items in the Revised
Components.
Once the ECO is saved, the status of the ECO will be "Approval Requested"

Now a notification will forwarded to the Approvers to Approve the ECO implementation thru Workflow

After Approval from any one of the Approver the ECO will get Approved status

Then query the ECO & click implement from Tool bar to implement the ECO.
Query the Child Bill in Bill of Material form & now the part number would have been replaced.

In the ECO Tab the ECO number details will be available.

This is the process of implementing the ECO using Standard Approval Process.