Industry & Mechanical Engineering
Industry & Mechanical Engineering

Mastering Engineering Complexity Under Cost and Time Pressure.

Customer-specific solutions, increasing software components, and volatile supply chains heighten project dynamics. Design, procurement, manufacturing, and commissioning must work more closely together, while margins and available engineering capacities are under pressure.

The Initial Situation

When high individualization meets a more challenging economic environment.

Machine and plant manufacturers combine customer-specific engineering with long supply chains and high vertical integration. Design, procurement, and production often run in parallel in many projects before all technical decisions are finalized. Software and digital services expand the traditional product business. At the same time, international competition, skilled labor shortages, and weak investment readiness increase pressure on project margins and existing capacity.

What Drives the Industry
Individualization remains both a strength and a cost driver.
Competitiveness

Individualization remains both a strength and a cost driver.

Customer-specific engineering creates differentiation but increases effort and variance in design, procurement, and manufacturing. Under higher price and margin pressure, the economically sensible boundary between standardization and custom solutions becomes more critical.

The question behind it: Where does individualization create real customer value – and where does it tie up capacity without sufficient economic contribution?
The scope of services increasingly extends beyond the machine itself.
Software & Digital Services

The scope of services increasingly extends beyond the machine itself.

Software, connectivity, and data-based services become part of the customer project. Mechanical design and manufacturing remain, but are supplemented by development components with different cycles and dependencies.

The question behind it: How do classic engineering structures and growing software components fit into a common product and project plan?
Procurement impacts the later project schedule early on.
Supply Chain & Project Risk

Procurement impacts the later project schedule early on.

Long-lead items and custom components often need to be ordered before the design is fully complete. Changes can thus affect already initiated procurement, production planning, and assembly.

The question behind it: How early must engineering and procurement be interlinked for schedule and cost implications to remain influenceable?
Planning Reality in Industry & Mechanical Engineering

What integrated planning in industry & mechanical engineering must master.

Customer-specific engineering, procurement, technical changes, capacities, and project profitability are closely intertwined in parallel customer projects. Five areas of tension particularly shape planning.

In engineer-to-order projects, the technical solution sometimes develops in parallel with order processing. Customer requirements are specified, interfaces clarified, and individual assemblies designed while other project parts are already being procured or manufactured.

The later a change occurs, the greater its economic leverage. What initially looks like a local adjustment in design can affect already ordered components, manufacturing orders, software, documentation, or assembly.

Long-lead items often need to be ordered before the complete design is finalized. At the same time, purchasing requires reliable specifications to contractually secure costs and delivery dates.

This overlap shortens lead times but increases the risk of changes. If a technical decision is later revised, new engineering efforts arise, and already placed orders or delivery dates must be adjusted.

ECR and ECO processes extend beyond bills of materials and drawings. A change can simultaneously affect costs, procurement, manufacturing, assembly, software versions, and the agreed scope of delivery.

Changes whose impacts are evaluated in different systems and areas of responsibility are particularly critical. The technical change status may already be approved, while schedule or cost implications only become visible later in the project.

Parallel customer projects access the same designers, software developers, manufacturing areas, test benches, and assembly teams. Capacity requirements are distributed very unevenly depending on the project phase and order type.

A large order or a schedule shift can thus affect several ongoing projects. Bottlenecks often arise in individual engineering disciplines, manufacturing resources, or during FAT, assembly, and commissioning.

A project can be far advanced in terms of schedule yet still lose economic quality. Additional engineering hours, rework, price increases in procurement, or customer changes not fully passed on alter the margin during the project lifecycle.

For long-running plant projects, comparing budget and actual costs is therefore insufficient. The remaining performance is also relevant: What costs will still be incurred until completion, what risks are already known, and what portion can be contractually passed on?

Our Approach

We reduce complexity through integrated planning solutions.

We combine a deep understanding of engineering and customer projects with proven industry best practices and comprehensive technological expertise. This integrates project structure, schedules, capacities, technical changes, and economic control into a consistent planning logic.

As close to standard as possible. As individual as necessary.

For implementation, we rely on established PPM platforms – tailored to your individual challenge.

References

Years of experience in Industry & Mechanical Engineering.

Alexander Zorn
Your Contact for Industry & Mechanical Engineering

Alexander Zorn

COO

„For our industrial clients, engineering, procurement, manufacturing, and project economics are more closely intertwined than many standard planning systems depict. We build enterprise solutions that precisely reflect this operational reality and show the impact of changes and bottlenecks on schedules, capacities, and margins.“