ECO Meaning in Engineering: A Complete Guide to Engineering Change Orders

Learn ECO meaning in engineering and how Engineering Change Orders streamline product development. Complete guide with best practices and modern cloud solutions.

Dec 8, 2025
In the fast-paced world of product development, change is the only constant. Whether it's a minor tweak to a single component or a major redesign of an entire product, managing change effectively is critical to success. That's where the Engineering Change Order, or ECO, comes in. But what exactly is the ECO meaning in engineering, and how can you use it to streamline your product development process? In this complete guide, we'll break down everything you need to know about ECOs and introduce a modern, cloud-native platform that makes managing them easier than ever: CAD ROOMS.

What is an Engineering Change Order (ECO)?

An Engineering Change Order (ECO) is a formal document that outlines a proposed change to a product design. It's a critical part of the product lifecycle management (PLM) process, providing a structured way to manage changes, ensure that all stakeholders are informed, and maintain a complete audit trail of all modifications. An ECO typically includes:
  • A description of the proposed change
  • The reason for the change
  • The parts and documents affected by the change
  • The cost and time implications of the change
  • A plan for implementing the change

The ECO Process: A Step-by-Step Guide

The ECO process can vary from company to company, but it typically follows these steps:
1.Identify the need for a change: The process begins when someone identifies a problem with a product or an opportunity for improvement.
2.Create an Engineering Change Request (ECR): The person who identified the need for a change creates an ECR, which is a formal request for a change to be made.
3.Review the ECR: The ECR is reviewed by a cross-functional team, including engineers, designers, and other stakeholders, to assess the feasibility and impact of the proposed change.
4.Approve or reject the ECR: If the ECR is approved, it becomes an ECO.
5.Implement the change: The engineering team implements the change, updating the necessary CAD files, drawings, and other documents.
6.Review and approve the change: The implemented change is reviewed and approved by the cross-functional team.
7.Release the change: Once the change is approved, it is released to production.

The Challenges of Traditional ECO Management

While the ECO process is critical to managing change effectively, traditional methods of managing ECOs can be slow, cumbersome, and prone to error. Common challenges include:
  • Manual, paper-based processes: Many companies still rely on manual, paper-based processes for managing ECOs, which can be slow, inefficient, and difficult to track.
  • Lack of visibility: Without a centralized system for managing ECOs, it can be difficult to get a clear picture of the status of all change orders.
  • Poor communication: Poor communication between team members can lead to delays, errors, and rework.
  • Lack of traceability: Without a complete audit trail, it can be difficult to track the history of a change and understand why it was made.

The Solution: Modern, Cloud-Native ECO Management with CAD ROOMS

What if you could manage your ECOs in a simple, intuitive, and collaborative platform? That's where CAD ROOMS comes in. CAD ROOMS is a modern, cloud-native PLM platform that makes managing ECOs easier than ever. With CAD ROOMS, you can:
  • Create and manage ECOs online: Create and manage your ECOs in a centralized, online platform, eliminating the need for manual, paper-based processes.
  • Automate your ECO workflows: Automate your ECO workflows, ensuring that all changes are properly reviewed, approved, and documented.
  • Maintain a complete audit trail: Maintain a complete audit trail of all changes, so you can easily track the history of a change and understand why it was made.

Conclusion: Take Control of Your Change Management Process

In today's fast-paced world, managing change effectively is more important than ever. With CAD ROOMS, you can take control of your change management process, streamline your workflows, and bring better products to market, faster. Start your free trial of CAD ROOMS today and see the difference for yourself.
 

Frequently Asked Questions (FAQ)

Q: What does ECO stand for in engineering?
A: ECO stands for Engineering Change Order. It is the formal document and process used to authorize and manage changes to a product design or associated documentation.
Q: What is the difference between an ECO and a PDM system?
A: A PDM (Product Data Management) system is the software that manages all product data (CAD files, documents, versions). An ECO is a specific workflow that runs within the PDM system to control design changes.
Q: What are the typical stages of an ECO workflow?
A: The typical stages are: Request (engineer identifies need for change), Review (stakeholders assess impact), Approval (management authorizes change), Implementation (design is updated), and Release (new revision is finalized). CAD ROOMS automates the routing between these stages.
Q: Who is responsible for creating an ECO?
A: Typically, the engineer who identifies the need for a change creates the initial change request. However, the ECO process itself is owned by the Engineering Manager or Quality Assurance team.
Q: How does CAD ROOMS ensure the correct files are linked to the ECO?
A: When an engineer creates an ECO, they select the affected files directly from the project. The system automatically verifies that these are the latest versions and locks them for editing until the ECO is approved or rejected.
Q: Can I track the time spent on an ECO?
A: Yes. CAD ROOMS records the timestamp for every action in the ECO workflow (submission, review, approval). This allows you to view the audit trail and identify bottlenecks in the approval process, helping to streamline your workflows.
Q: What is the impact of a poorly managed ECO process?
A: A poorly managed ECO process leads to: manufacturing using the wrong revision, increased scrap and rework costs, project delays, and compliance failures. Automating the process with CAD ROOMS is essential for quality control.
Q: How does an ECO affect version control?
A: When an ECO is approved and implemented, it results in a new, formally released revision of the affected files. The ECO document itself is permanently linked to that revision, providing the reason and authorization for the change.
Q: How do I get started with implementing ECOs in CAD ROOMS?
A: Start by creating an ECO in your project's ECOs tab. Add a title, description, and associate the files that need to be changed. Assign reviewers and an assignee, then submit for review. Once all reviewers approve, the ECO will be released automatically.