Engineer to Order (ETO) environments are characterized by high customization and client specific engineering, often resulting in inefficiencies due to frequent redesigns of components and processes. Standardization is known to improve efficiency, reduce costs, and enhance predictability. It however originates from mass production, making its application in ETO environments challenging. This thesis investigates how suitable standardization strategies can be developed for product families in ETO organizations. Huisman Equipment, a Dutch manufacturer of offshore construction equipment, served as the main case study.
The main research objective is defined as: “To determine how a suitable standardization strategy can be established for product families in an Engineer to Order environment.” To address this, four research questions were formulated, focusing on identifying internal and external factors influencing standardization, measuring current levels of standardization, assessing alignment with project requirements, and determining which elements can be adapted to achieve a more suitable degree of standardization. A design objective was added: to establish a structured procedure for developing standardization strategies in ETO environments.
The study applies the Design Science Research (DSR) methodology, combining a literature review with the design and evaluation of an artifact: the Standardization Strategy Development Procedure (SSDP). The SSDP consists of six sequential activities, following these will define the market strategy, analyse influencing factors, and generate improvements. Together, the activities provide a tailored standardization strategy
The procedure was demonstrated in a case study at Huisman, applied to three product families with different levels of uniqueness: knuckle boom cranes (KBCs), leg encircling cranes (LECs), and motion compensated pile grippers (MCPGs). The first three activities indicated that KBCs are the most suitable for standardization. By further executing the SSDP, a strategy was developed for KBCs that entails reducing customization to a set of standard types with configurable options, and adapting internal processes.
Evaluation through expert feedback and reflection confirmed the SSDP as a practical and well functioning tool. However, improvements are possible regarding the allowance of customization, integration of financial insights, and adaptation of internal processes when shifting from ETO toward more standardized approaches.
Theoretical contributions of this study include extending standardization theory to ETO environments by integrating influencing factors and models into a single framework. Practically, the SSDP provides ETO companies, particularly vertically integrated organizations, with a structured method to develop tailored standardization strategies that balance efficiency and flexibility. Limitations include the single case scope, uncertainty of long term impact, and limited quantitative data. Future research should apply the SSDP across multiple contexts and investigate long term impacts.
In conclusion, this thesis developed and demonstrated a structured, repeatable procedure that develops suitable standardization strategies. Thereby, it reduces existing uncertainty regarding standardization in the ETO environment.