Abstract
Engineering changes (ECs) are unavoidable in the engineer-to-order (ETO) environment. ECs improve products and bring additional profit to ETO companies if effectively negotiated and implemented. Despite the abundant relevant literature on EC management, ETO companies still report cost overruns owing to ECs. Here, a multiple case study conducted in a Norwegian shipbuilding group was used to investigate the factors affecting EC implementation performance in complex ETO environments. The factors were examined by a cross-case analysis of six ECs occurring in the shipbuilding projects. Eleven factors were identified and analyzed; their impact on EC cost was assessed by experts. The factors were ranked; the ranking shows three factors having the highest impact: time of EC occurrence, competence and experience of engineering and production staff, and degree of vertical integration in a supply chain. Finally, the study recommends EC management practices and tools to reduce the negative impacts of the identified factors.