Framework for Standardization Programs in the Engineer-To-Order Industry

The Engineer-To-Order business encompasses companies producing a broad range of industrial products. Projects in this business are becoming increasingly complex, both from a technical and a management perspective. In this context, standardization programs have become a common approach to improve competitiveness and profitability of ETO companies. Standardization programs have their origin in the product business, which significantly differs from ETO business e.g. by the volume produced and the complexity of functional requirements. Nevertheless the use of standardization programs has increased during the last years. However, there is a methodological deficit for standardization, since approaches and principles which have proven in product business cannot be easily transferred to ETO business. As a consequence guidelines describing how standardization programs can be implemented in ETO companies are very scarce. Based on the analysis of six standardization programs, good practices and lessons learned for standardization in the ETO business have been derived and a framework was developed to support planning and implementation of standardization programs. The framework consists of a procedure model (step-by-step process for implementation), cross-process topics which are important in several process steps (e.g. change management, roles, tools) as well as utilities (e.g. templates, tools, glossaries). The framework provides companies a structured guideline for the planning and implementation of standardization programs in ETO business.