Strategic perspectives on modularity

In this paper we argue that the debate on modularity has come to a point where a consensus is slowly emerging. However, we also contend that this consensus is clearly technology driven. In particular, no room is left for firm strategies. Typically, technology is considered as an exogenous variable to which firms have no choices but to adapt. Taking a slightly different perspective, our main objective is to offer a conceptual framework enabling to shed light on the role of corporate strategies in the process of modularization. From interviews with academic design engineers, we show that firms often consider product architecture as a critical variable to fit their strategic requirements. Based on design sciences, we build an original approach to product modularity. This approach, which leaves an important space for firms' strategic choices, proves also to seize a large part of the industrial reality of modularity. Our framework, which is a first step towards the consideration of strategies within the framework of modularity, gives an account for the diversity of industrial logics related to product modularization.product modularity ; corporate strategy ; technological determinism

ERP-machining centre integration: a modular kitchen production case study

Manufacturing Engineering Society International Conference 2017, MESIC 2017, 28-30 June 2017, Vigo (Pontevedra), SpainThis document presents an ERP system connection with a CNC machining center application in a kitchen furniture manufacturing facility. This has contributed to allow individually designed product to every customer through high process flexibility and integration. A Dynamic Structure Parametric Bill Of Materials is used as basic element in the management information system. The machining center used to perform the preassembly machining with different drilling, milling and sawing modules provides a process versatility that would not be possible using single machines. A standardization of the preassembly machining process for about 99% of the furniture is allowed. This means a very significant saving in material and labor costs and an improvement in the quality of the final product

The imperfect hiding : some introductory concepts and preliminary issues on modularity

In this work we present a critical assessment of some problems and open questions on the debated notion of modularity. Modularity is greatly in fashion nowadays, being often proposed as the new approach to complex artefact production that enables to combine fast innovation pace, enhanced product variety and reduced need for co-ordination. In line with recent critical assessments of the managerial literature on modularity, we sustain that modularity is only one among several arrangements to cope with the complexity inherent in most high-technology artefact production, and by no means the best one. We first discuss relations between modularity and the broader (and much older within economics) notion of division of labour. Then we sustain that a modular approach to labour division aimed at eliminating technological interdependencies between components or phases of a complex production process may have, as a by-product, the creation of other types of interdependencies which may subsequently result in inefficiencies of various types. Hence, the choice of a modular design strategy implies the resolution of various tradeoffs. Depending on how such tradeoffs are solved, different organisational arrangements may be created to cope with ‘residual’ interdependencies. Hence, there is no need to postulate a perfect isomorphism, as some recent literature has proposed, between modularity at the product level and modularity at the organisational level

Toward Understanding Enterprise Architecture Management’s Role in Strategic Change: Antecedents, Processes, Outcomes

As organizations face accelerated economic dynamics, it isincreasingly important to improve the capability of reacting agileto changes in the marketplace. This requires implementing andadapting internal structures in a timely manner and ensuringbusiness-IT coordination throughout the process. Enterprisearchitecture management (EAM) is frequently proposed as a meanto arrive at organizational forms that allow for timelyreconfiguration and to guide strategy-aligned change. Thisexplorative study seeks to contribute to an overall understandingof EAM’s application in strategic change processes. It is based onan in-depth content analysis of existing research in the field.Specifically, it identifies common EAM practices that have beensuggested for application throughout the planning andimplementation of strategic change. Furthermore, it revealsantecedents and outcomes of this application. The articlediscusses these findings in detail and summarizes the results in apreliminary process model of applying EAM for agile strategicchange

Industrializing Swiss Private Banks: A Strategic Road Map

This paper analyzes the industrialization processes of Swiss private banks against the background of strategic approaches, future trends, and potential risks in this sector. Overall, industrialization is identified as the basis for the successful implementation of innovative and disruptive services and technology, and banks’ collaboration with (external) service providers is likely to play an increasingly important role with regard to such implementation. Strategic conclusions for Swiss private banks are captured in 10 distinct recommendations that each bank should consider when planning its industrialization strategy. Hereby, three principal themes are covered—namely, the strategic positioning of private banks with regard to bank size, business model, and other factors; optimized operations, which deals with the question of how to increase the efficiency of internal processes; and ways to reduce the obstacles that private banks face with regard to successful outsourcing. The underlying strategic requirements are a holistic approach to strategy and an ongoing improvement culture

From borders to interfaces : Modularizing specialized outpatient services

Background and aims: In healthcare, both the need to increase patient-centered care and customization, and simultaneously reduce costs has been recognized. Mass customization and its key means, modularization, are operations management models that are suggested to have potential to tackle this conundrum by enabling simultaneous standardization and customization of services. However, more knowledge of the applicability of modularization and mass customization is needed. This thesis focuses on modularization of hospital healthcare delivery. It aims to identify enablers, constraints, and outcomes related to the modularization of healthcare services focusing on specialized healthcare from the perspective of hematology care, and to identify patient preferences related to day hospital service delivery and number of treating nurses in a hematology and oncology care context. Data and methods: Both mixed methods and data were used in the study. Data were gathered from the Helsinki University Hospital´s (HUS) Comprehensive Cancer Center, Meilahti Triangle Hospital´s day hospital, and hospital-wide databases. Quantitative data including service usage, bed count, and personnel resource information from the hematology unit and Meilahti Triangle Hospital were obtained between 2009-2010 and 2013-2014. Semi-structured interviews (n=16) of personnel members of the oncology and hematology units and the Meilahti Triangle Hospital´s day hospital were conducted. In addition, unstructured interviews of key hematology personnel members were conducted. A questionnaire survey to oncology and hematology patients was carried out. Field visits were organized. In addition, treatment instructions from both the hematology and oncology unit and scheduling instructions of the independent day hospital (Meilahti Triangle Hospital´s day hospital) were analyzed. Reference data on changes in hematology care were obtained from Oulu University Hospital (Oulu). Results: Six enablers and two constraints affecting the modularization of hospital care were identified. The findings indicate that healthcare characteristics such as the requirement to treat all, information asymmetry, professional autonomy, hierarchy, and fragmented service delivery may challenge modularization. However, by applying design activities that support modularization, these challenges may be overcome. Modularization may have both positive and challenging outcomes to healthcare service delivery. The findings indicate that modularization may be an applicable method to support the change from inpatient- to outpatient-focused care in a hospital context. In addition, modularization may streamline service production and communication, and increase replaceability among personnel. However, modularization may not increase customization or patient involvement in care delivery design and might restrict communication. Both patient groups, oncology patients treated in a traditional specialty-specific day hospital with named nurses, and hematology patients treated in a multispecialty modularized day hospital without named nurses, were satisfied with their day hospital care. Oncology patients preferred named nurses and a maximum of three treating nurses in day hospital care more often than hematology patients. In addition, the number of treating day hospital nurses and annual visits affected preferences. Conclusions: The findings indicate that modularization may be an applicable method to support the change from inpatient- to outpatient-focused care in a hospital context. However, organizations need to balance the requirement of customization versus standardization in order to increase the success and applicability of the operating model. This is important as modularization may not increase customization or patient involvement in care delivery design and might restrict communication. The findings indicate that when applied to the care of right patient groups, patients may be satisfied with modularized care. However, this study indicates that not all patient groups may be in favor of modularization, especially if it means that patients would not have a named nurse in outpatient care. In addition, healthcare characteristics should be taken into account, as they may constrain modularization and affect the outcomes of modularized services. As not all outcomes are merely positive, organizations should carefully consider in which situations modularization could enhance service production. Altogether, more research is needed to understand when and in what situations modularization is applicable and most likely successful in developing healthcare service delivery.Väitöskirjan tavoitteena oli tunnistaa erikoissairaanhoidon modularisointiin liittyviä mahdollistajia, rajoitteita sekä seurauksia. Lisäksi tavoitteena oli tunnistaa ja selvittää potilaiden näkemyksiä liittyen modularisoitujen päiväsairaalatoimintojen tuottamiseen ja hoitavien hoitajien määrään päiväsairaalassa. Tutkimuksessa käytettiin sekä laadullisia että määrällisiä menetelmiä. Tutkimuksen aineisto kerättiin Helsingin yliopistollisen keskussairaalan (HUS) Syöpäkeskuksesta, Meilahden kolmiosairaalan päiväsairaalasta ja HUS:n yleisistä tietojärjestelmistä. Kvantitatiivinen aineisto kerättiin HUS:n Syöpäkeskuksen hematologian yksiköstä ja Meilahden kolmiosairaalan päiväsairaalasta ajalta 2009-2010 ja 2013-2014 ja aineisto sisälsi seuraavia tietoja: käyntitiedot, sänkyjen määrä ja henkilöstön määrä. Tutkimuksessa haastateltiin 16 henkilöstön jäsentä Syöpäkeskuksesta (onkologia ja hematologia) tai Kolmiosairaalan päiväsairaalasta; lisäksi toteutettiin tutkimusta tukevia yksilöhaastatteluita. Onkologian ja hematologian potilaiden näkemyksiä ja kokemuksia liittyen päiväsairaalatoimintaan selvitettiin kyselyn avulla. Kyselyä varten suoritettiin viisi esihaastattelua potilaille. Lisäksi tutkimuksessa käytettiin apuna hoito- ja aikataulutusohjeita sekä toteutettiin kenttävierailut yksiköihin. Syöpäkeskuksen hematologian potilaita hoidetaan Kolmiosairaalan päiväsairaalassa, joka on modularisoitu ja jossa ei ole omahoitajia. Onkologian potilaita hoidetaan Syöpäkeskuksen Syöpäklinikan päiväsairaalassa ja potilailla on omahoitaja päiväsairaalahoitojen ajan. Vertailuaineisto kerättiin Oulun yliopistollisen sairaalan (Oulu) hematologian yksiköstä. Tutkimuksessa tunnistettiin kuusi mahdollistajaa ja kaksi rajoittajaa liittyen sairaalahoidon modularisointiin. Vaikka terveydenhuollon erityispiirteet voivat haastaa modularisaation, sitä tukevilla toimintamalleilla voidaan kuitenkin selättää kyseiset haasteet. Modularisaatio voi sekä tukea että haastaa terveydenhuollon palvelutuotantoa. Toimintamalli voi tukea siirtymistä vuodeosastohoidosta kohti avohoitopainotteista hoitoa. Lisäksi modularisaatio voi virtaviivaistaa tiedonsiirtoa ja palvelutuotantoa ja tukea henkilöstön korvattavuutta. Toimintamallin käyttöönotto ei kuitenkaan välttämättä lisää potilaiden osallistumista eikä palveluotannon räätälöintiä ja se voi rajoittaa epävirallista tiedonsiirtoa. Potilaat voivat olla tyytyväisiä modulaarisesti järjestettyyn päiväsairaalahoitoon. Potilaskyselyissä hematologian potilaat toivoivat onkologian potilaita harvemmin, että heillä olisi omahoitaja tai maksimissaan kolme hoitavaa hoitajaa päiväsairaalassa. Lisäksi päiväsairaalakäyntien ja hoitavien hoitajien lukumäärä vaikutti toiveisiin. Tutkimus osoittaa, että modularisaatio voi tukea siirtymistä kohti avopainotteista hoitoa. Terveydenhuollon organisaatioiden tulee kuitenkin arvioida räätälöinnin ja standardoinnin tasapainoa omassa palvelutuotannossaan, jotta toimintamallia voidaan tuloksellisesti hyödyntää. Potilaiden näkemyksiä ja preferenssejä toimintamallista tulee selvittää, sillä eri potilasryhmien näkemys modularisaation käytöstä voi vaihdella. Organisaatioiden on myös huomioitava terveydenhuollon erikoispiirteet, sillä ne voivat vaikuttaa modularisaation soveltuvuuteen ja tuloksiin organisaatiossa. Jatkotutkimuksia tarvitaan, jotta voidaan ymmärtää milloin ja mihin tilanteisiin modularisaatio terveydenhuollossa soveltuu

The imperfect hiding: Some introductory concepts and preliminary issues on modularity.

In this work we present a critical assessment of some problems and open questions on the debated notion of modularity. Modularity is greatly in fashion nowadays, being often proposed as the new approach to complex artefact production that enables to combine fast innovation pace, enhanced product variety and reduced need for co-ordination. In line with recent critical assessments of the managerial literature on modularity, we sustain that modularity is only one among several arrangements to cope with the complexity inherent in most high-technology artefact production, and by no means the best one. We first discuss relations between modularity and the broader (and much older within economics) notion of division of labour. Then we sustain that a modular approach to labour division aimed at eliminating technological interdependencies between components or phases of a complex production process may have, as a by-product, the creation of other types of interdependencies which may subsequently result in inefficiencies of various types. Hence, the choice of a modular design strategy implies the resolution of various tradeoffs. Depending on how such tradeoffs are solved, different organisational arrangements may be created to cope with 'residual' interdependencies. Hence, there is no need to postulate a perfect isomorphism, as some recent literature has proposed, between modularity at the product level and modularity at the organisational level.