Industrial Equipment, Machinery & Capital Goods worked example

Engineering Change Impact with available engineering change budget of 21,000 $: a worked example

This worked example runs the engineering change impact numbers for a tougher week than the baseline: available engineering change budget of 21,000 $ instead of the typical 42,000 $. Calculate the margin impact of an engineering change using available change budget, required change cost, and project revenue basis.

The inputs for this scenario

  • Available engineering change budget: 21,000 $ (the input this scenario stresses; the baseline uses 42,000)
  • Required engineering change cost: 58,000 $ (held at the documented default)
  • Project revenue or budget basis: 750,000 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Engineering change cost gap = available change budget - required engineering change cost.
  • Engineering change impact works out to -4.93 % at these inputs, and this is the headline figure for the scenario.
  • Engineering change cost gap works out to -37,000 value at these inputs.
  • Available change budget works out to 21,000 value at these inputs.
  • Required engineering change cost works out to 58,000 value at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where available engineering change budget sits at 42,000 $ and the headline result is -2.13 %, this scenario comes in 131% below the baseline at -4.93 %.
  • Use it when an ECO lands and you need to decide whether to absorb it, escalate for more budget, or pass cost to the customer. A result at this level usually justifies acting on the stressed input before touching anything else, because every other figure in the table is downstream of it.

Results at a glance

  • Engineering change impact: -4.93 % (headline result)
  • Engineering change cost gap: -37,000 value
  • Available change budget: 21,000 value
  • Required engineering change cost: 58,000 value

Run it with your numbers

  • To rerun this with your own numbers, open the live Engineering Change Impact calculator, set available engineering change budget to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.