The Impact Of Engineering Change Request (ECR) On Accuracy Of Project CEAC

Change affects every aspect of human activity and can be the main reason for the failure of a project. In the actual “ever-changing world”, where requirements of projects are subjected to continuous changes and might require revisions of the allocated resources and re-baselining the project over and over, it is necessary that project managers react appropriately to change and understand how it can influence the behavior of their project, only then changes can be managed effectively. The focus of this thesis is to get insight on the impact of Engineering Change Requests (ECRs) on engineering projects final costs by analyzing CEAC of twenty projects chose from an Italian supplier in Automotive Industry, whether these ECRs are due to financial problems of contractor or owners, change in market conditions, inadequate communication between the company and client, insufficient details, change in project specification, conflicts in contract documents and poor performance of company or low capability of PMs in forecasting the upcoming changes and as a consequence in determining the most accurate and precise budget for the projects. The CEACs are estimated by a nonlinear regression method that has been gaining lots of attention since it provides an accurate estimate in early-middle stages of completion of the project.