Enhancing Efficiency and Sustainability in Engineering-to-Order Organisations: A Lean Management Approach to Knowledge Work and Performance Improvement

Abstract

This thesis is structured into two primary components: the main body (part I), which provides a comprehensive description of the research work, and the appendix (part II), which contains the appended papers. In the main body, the introduction is presented, the research approach is outlined, the main points of the appended papers are summarised, and the research contributions and recommendations for future work are concluded. The appendix includes a total of seven articles, five of which have been published, while the remaining two have been accepted for publication. The research is driven by the significant inefficiencies observed in engineering companies throughout professional experience since 2011, supported by the action research methodology. The objective of this PhD is to illustrate how the application of fundamental lean principles and management tools can streamline workflows, improve team satisfaction, and cultivate a more productive working environment. Ultimately, this research aims to assist companies in moving beyond the illusion of busyness, shifting their focus towards meaningful productivity and delivering better outcomes for both individuals and organisations. Engineering-to-Order (ETO) enterprises increasingly rely on office-based workflows but face challenges such as shrinking profit margins, rising design costs, inefficiencies, and growing task backlogs — factors that contribute to project delays and budget overruns. A significant share of project costs stems from non-value-added (NVA) activities, further undermining competitiveness. Extensive research has applied lean principles in manufacturing, yet a critical gap remains in frameworks for office-based, knowledge-intensive workflows. To address this, the present study proposes customised lean methodologies and strategic tools to enhance ETO performance in three Norwegian engineering firms, emphasising digitalisation and lean adaptation. It examines digital tools, such as Value Stream Map (VSM) and kanban boards, to improve efficiency in physical and virtual work environments. Additionally, the study explores frameworks like the Last Planner System (LPS) and a lean-agile hybrid model to refine project planning and execution, accelerating decision-making and hardware design. It also introduces novel concepts, including the Agile Balanced Scorecard (BSC), Sustainability Strategy Map (SSM), and Sustainable VSM (Sus-VSM), illustrating how lean principles support ETO enterprises in achieving sustainability-oriented strategic goals. In conclusion, this research addresses critical methodological gaps by developing tools and strategies aimed at enhancing productivity and minimising waste within ETO environments. Although primarily focused on engineering and ETO contexts, these methodologies posses broader cross-industry applicability, contributing to advancements in efficiency, sustainability, and strategic management.