Abstract
AbstractThis study examines why shipbuilding firms use both standardized and customized design and analyzes the impact of design architecture choices on competitiveness. Case study findings suggest that Hyundai Heavy Industry Corporation (HHIC) adopts package unit development strategy for cost competitiveness. HHIC’s product development processes use package unit design to its suppliers, which then provide their product by units. However, instead of modular product architecture, Samsung Heavy Industry Corporation (SHIC) emphasizes dual strategic options, which integrate both standardization and customization orientation.Meanwhile, “major” Japanese shipbuilders focusing on high-value-added categories have lost their market position to Korean rivals, but some Japanese companies are still successful. Such Japanese shipbuilding firms adopt “standardized ship” strategies. Some successful companies adopt modularization or closed-standardization at the sub-system level (engine room outfitting). This action contributes to the design and manufacturing productivity of Japanese firms. Such Japanese firms can still maintain their competitiveness in the shipbuilding industry. Therefore, these case studies provide interesting insight from theoretical and managerial standpoints.
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