When tight margins result from tenders, a rigorous change management system becomes your most effective profit lever. Every deviation from the specifications comes at a price.
Many companies win contracts through auctions with very low margins because the customer only sees the prices of individual parts. The strategy is to accept the low starting price and at the same time establish a rigorous change management system that systematically prices every change requested by the customer. Over the course of the project, this results in a significant EBIT leverage effect.
Especially in the automotive industry, for C-parts, and in industries with low vertical integration, the initial price is rarely the final price. Customers change specifications, materials, quantities, and delivery schedules. Those who do not systematically record and price these changes are giving away margin quarter after quarter.
Lighthouse Consulting's Engineering Change Management system provides you with the structure, arguments, and evidence you need to correctly bill for every change request without straining the customer relationship.
A continuous process that tracks every dollar you are owed, from the initial specification to invoicing.
Create a detailed Book of Requirements and define a clear baseline. Each requirement is documented, versioned, and confirmed by the customer.
Any deviation from the specifications is documented as a change request, categorized, and recorded with a timestamp, source, and impact.
Technical effort, material costs, and time delays are calculated. Structured calculation templates for each change type.
Regular change review meetings with the customer, keeping records and invoicing. Complete minutes of all decisions.
Adjust the values to suit your situation. The calculation is performed in real time.
Indicative calculation. Your actual potential depends on the contract terms and project structure.
Each module can be used individually or implemented as a complete system.
Structured specifications as a reliable basis for contracts. Templates for technical requirements, quality criteria, and delivery conditions. Versioned approval processes that can later serve as evidence.
Centralized recording and evaluation of all changes in one system. Each request is assigned a status, responsible person, and timestamp. No change remains undocumented or gets lost in email threads.
Automatic calculation: Material, time, and costs for each change request. Standardized calculation templates by component category and change type. Fact-based foundation for every customer negotiation.
Preparation, argumentation, and results tracking at a glance. Change review meeting templates, decision matrix, and approval workflow. Clear documentation of who approved what and when.
Complete documentation for customers and management. EBIT development made visible through change management. Quarterly reports, audit trails, and invoice preparation at the touch of a button.
Every industry has its own drivers for engineering changes. The method is the same, but the focus areas differ.
OEM auctions push purchase prices to a minimum. Every design change after nomination is a justified change request. C-parts suppliers who price systematically consistently outperform their competitors in terms of EBIT.
Customized systems continue to evolve during the construction phase. Change order management is well established in mechanical engineering, but often lacks a systematic approach. Every specification change after an order has been placed should be part of a formal change request process.
Regulatory changes (MDR, FDA) necessitate redesigns that customers dismiss as "market-driven." Any documentation requirements arising from customer requirements can be calculated and invoiced.
Component discontinuations force redesigns, often at short notice at the customer's request. Every redesign involves development costs, qualification costs, and a price that may be charged.
FEW Automotive Group is an international automotive supplier with production sites in Europe. As part of its collaboration with Lighthouse Consultings, structured processes for project management and project transparency were introduced, forming the basis for effective change management.
The result: clear contractual basis, structured documentation, and a gate review system that systematically records and evaluates changes instead of responding ad hoc to customer requests.
20+ years of experience in the manufacturing industry, including many years in automotive and mechanical engineering. Specialist in operational profitability, project management, and structured processes for medium-sized companies in Germany, Austria, and Switzerland.
Forbes Business Council Member. ENGAGE 2025 Speaker. DHBW Lecturer.
Change management is one of five levers. Combined, they achieve the greatest EBIT effect.
Synchronize sales, production, and capacity
Structured initiatives up to income statement impact
Portfolio and gate review systems
Digitize contracts, secure liquidity
Start with a free potential analysis. In 15 minutes, you will see how much margin you are currently missing out on and which steps will have the greatest impact first.
Or: Read the FEW Automotive case study →Select an appointment directly, free of charge and without obligation.
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