Case selection Methodological reflection on Case Study 6

within this product group was developed, each with another level of reuse of standard designs. Figure 11.1 shows that data were generated on seven scenarios with different realistic degrees of reuse of components.

11.3.6 Measurement

In order to generate realistic outcomes in terms of market share dependent on the timing of the market launch of the product, cur- rent knowledge of the market and of the process of new product devel- opment needed to be collected and, next, to be modelled in the computer program. Two models were built, one of the effect of the timing of the market launch of a new product on market share, and the other of the effect of the extent of reuse of standard designs on the throughput time. The output of the latter model a date following from a potentially shorter throughput time for development could be used as input for the first mentioned model.

11.3.7 Data presentation

Figure 11.1 shows the data on annual sales volume for seven cases with different levels of reuse of standard designs. Annual sales volume was chosen as a proxy for market share.

11.3.8 Data analysis

Testing the hypothesis, which represented a deterministic relation, consisted of, first, ranking the seven cases according to the independ- ent variable extent of reuse of standard designs as well as ranking them according to the dependent variable annual sales volume and, next, ascertaining that both rank orders were exactly the same see Chapter 6. Figure 11.1 shows that this was indeed the case. Therefore, the hypothesis was confirmed.

11.3.9 Implications for practice

Case Study 6 correctly made a distinction between a the results of the study and b what practitioners could do with these results. The outcome of the study was a confirmation of the hypothesis, implying Chapter 11 that the degree to which standard designs are reused in a new product in this firm, had a direct positive relation to the annual sales volume and, it is assumed, to market share. An increase of 50 per cent of sales could be achieved by reusing standard designs for 30 per cent of the components of the new product. The firm concluded from this posi- tive test result that it had sufficient operational flexibility to realize a sufficient level of strategic flexibility. It is important to note that the results of this study were based on data generated by the two simulation models and that, therefore, the credibility of the results is dependent on the quality of the input for these models as well as of the models themselves. The input to the models was provided by experts from the firm. This implies that the validity of the conclusions of this study depends on the quality of this input. Therefore, it is of great importance for this study that these experts confirmed in meetings that the simulation models and their results were realistic, in their opinion.

11.4 Case Study 7: Descriptive practice-oriented research

Building a model of best practice of company standardization 2 by Henk J. De Vries and Florens Slob

11.4.1 Introduction

Companies make use of many different kinds of standards in order to improve their business performance in terms of efficiency and quality. In the process industry chemical and petrochemical industries, bene- fits such as reduction of design and construction costs, procurement costs, training costs, and minimization of design errors and rework, have been reported Simpkins, 2001. Companies in the process indus- try prefer external standards, for example from the ISO International Organization for Standardization and API American Petroleum Institute Barthet, 2000; Qin, 2004; Thomas, 2004. However, these 240 2 This chapter is based on: Oly, M. P. and Slob, F. J. C. 1999. Benchmarking Bedrijfsnormalisatie – Een best practice voor de procesindustrie. Rotterdam: Erasmus Universiteit Rotterdam, Faculteit Bedrijfskunde, and De Vries, H.J. 2006 Best Practice in Company Standardization. International Journal for IT Standards and Standardization Research, 41, pp. 62–85.