Vector: ECNs balloon lead times

Vector Consulting Group says late-stage engineering changes are pushing India’s auto programmes off schedule and into repeated rework. (vectorconsulting.in) In a white paper dated September 10, 2025, the consultancy said 80% of original equipment manufacturers in its study reported launch disruptions tied to late-stage engineering change notices, or ECNs. (vectorconsulting.in) (business-standard.com) The research was based on interviews with 36 CXOs across original equipment manufacturers and Tier-1 suppliers in India’s automotive supply chain. (vectorconsulting.in) An engineering change notice is the formal signal that a part, drawing, tool, software feature or process needs to be changed after development is already underway. Vector argues the timing of those notices is the clearest indicator of whether a new-product-development system is under control. (vectorconsulting.in) The paper says 70% to 80% of ECNs should be resolved during the design stage and should taper to less than 8% after launch. Instead, Vector said 81% of surveyed OEMs showed “significant misalignment,” with ECNs peaking late in the cycle. (vectorconsulting.in) That late churn shows up in supplier operations. Vector said 76% of suppliers reported lead times ballooning, 71% faced repeated revalidation or testing, 62% had to retool molds and 52% missed delivery targets. (vectorconsulting.in) The damage does not stop at launch timing. The same study said 33% of OEMs cited post-launch quality failures and 20% reported higher warranty costs. (vectorconsulting.in) Business Standard, reporting on the study on September 12, 2025, said the problem could affect India’s international competitiveness as automakers try to shorten development cycles and handle more model complexity. (business-standard.com) Vector’s proposed fix is less about adding checkpoints and more about moving decisions earlier. The white paper calls for tighter gate controls, lower work-in-progress in engineering and earlier convergence with suppliers. (vectorconsulting.in) The firm says that shift could cut late-stage ECNs by 20% to 30%, improve time-to-market by 30% to 50% and free up 15% to 25% more engineering bandwidth for new work. (vectorconsulting.in) The thread running through the report is simple: in India’s auto sector, the cost of a change depends less on the change itself than on how late it arrives. (vectorconsulting.in)