Modularization Assessment of Product Architecture

Modularization refers to the opportunity for mixing-and-matching of components in a modular product design in which the standard interfaces between components are specified to allow for a range of variation in components to be substituted in a product architecture. It is through mixing-and-matching of these components, and how these components interface with one another, that new systems are created. Consequently, the degree of modularization inherent in a system is highly dependent upon the components and the interface constraints shared among the components, modules, and sub-systems. In this paper, a mathematical model is derived for analyzing the degree of modularization in a given product architecture by taking into consideration the number of components, number of interfaces, the composition of new-to-the-firm (NTF) components, and substitutability of components. An analysis of Chrysler windshield wipers controller suggests that two product architectures may share similar interface constraints, but the opportunity for modularization of one module is significant higher than the other due to the higher substitutability of its components and lower composition of NTF components.Product architecture, modularization, substitutability, new product development

Implications for innovation management

Globalization of markets and new business practices are prompting high-tech firms to reconsider their competitive strategy. The increasing complexity of technologies in addition to shorter product life cycles are also forcing firms to rely on R&D as a source of strategy. More importantly, firms are inclined to evaluate their technologies from a portfolio’s perspective in which a set or a sub-set of R&D projects is evaluated together, in relation to each other. Portfolio techniques can help strategic managers in evaluating whether a portfolio of products is adequate from the perspective of long-term corporate growth and profitability. Obviously, when R&D projects are evaluated relative to one another, technical capability management of such projects must be carried out concurrently. In this paper, R&D Project Portfolio Matrix is used as a tool for analyzing a portfolio of R&D projects by linking competitive advantages of a firm to benefits these projects may provide to customers. Examples of batteries for electric vehicles (EV) and hybrid electric vehicles (HEV) are provided to illustrate how such matrix is used, and what are some of the implications for innovation management of such projects

An interpretation of the bicycle industry

This paper aims at describing network dynamics through the lenses of modularity. Different types of networks exist as ways of coping with the dynamics of industry demands that are based on modular product architectures. In order to distinguish between different types of mechanisms in which networks (operating with modular product architectures may) evolve, two types of networks are introduced: ‘marketdriven product architecture network’ (i.e., when the industrial network is driven by product architecture that is controlled by the market) and ‘firm-driven product architecture network’ (when the industrial network is driven by product architecture that is controlled by the firm). The history of the technological development of bicycle, since 1890s to 1990s, illustrates how the bicycle industry survived two cycles of disaggregation-concentration

the case of Schindler Elevators

Modularity refers to the scheme by which interfaces shared among components in a given product architecture are standardized and specified to allow for greater reusability and commonality sharing of components among product families. The management of innovation through modular product architecture strategies is gaining increasing importance for firms, not only in practice but also from a theoretical perspective. It is argued that the degree of modularity inherent in a given product architecture is sensitive and highly dependent upon the number of components and the interface constraints shared among the components, modules, sub-systems, and systems. This paper applies a mathematical model, termed modularization function, for analyzing dynamics and the degree of modularity of a given product architecture by taking into account the following variables: number of components, number of interfaces, new-to-the-firm component composition, and substitutability factor. The application of the modularization function is illustrated with two elevator systems from Schindler Lifts of Switzerland: traction and hydraulic elevators. The comparative analysis of the elevators captures the sensitivity and dynamics of product architecture modularity created by three types of components (standard, neutral, and unique) and two types of interfaces (fundamental and optional)

Modularization assessment of product

2 Modularization assessment of product architecture by Juliana Hsuan Mikkola DRUID Dept. of Industrial Economics and Strategy Copenhagen Business School Howitzvej 60 DK-2000 Frederiksberg Denmark Tel: +45 3815 2941 Fax: +45 3815 2540 Email: [email protected] Abstract Modularization refers to the opportunity for mixing-and-matching of components in a modular product design in which the standard interfaces between components are specified to allow for a range of variation in components to be substituted in a product architecture. It is through mixing-and-matching of these components, and how these components interface with one another, that new systems are created. Consequently, the degree of modularization inherent in a system is highly dependent upon the components and the interface constraints shared among the components, modules, and sub-systems. In this paper, a mathematical model is derived for analyzing the degree of modularization in a given product architecture by taking into consideration the number of components, number of interfaces, the composition of new-to-the-firm (NTF) components, and substitutability of components. An analysis of Chrysler windshield wipers controller suggests that two product architectures may share similar interface constraints, but the opportunity for modularization of one module is significant higher than the other due to the higher substitutability of its components and lower composition of NTF components

Toward a General Theory

The focus of this paper is to integrate various perspectives on product architecture modularity into a general framework, and also to propose a way to measure the degree of modularization embedded in product architectures. Various trade-offs between modular and integral product architectures and how components and interfaces influence the degree of modularization are considered. In order to gain a better understanding of product architecture modularity as a strategy, a theoretical framework and propositions are drawn from various academic literature sources. Based on the literature review, the following key elements of product architecture are identified: components (standard and new-to-the-firm), interfaces (standardization and specification), degree of coupling, and substitutability. A mathematical function, termed modularization function, is introduced to measure the degree of modularization embedded in product architectures, by taking the key elements as the main variables. Various managerial and theoretical implications of the modularization function are drawn. For instance, the function can be used as a framework to aid to examine various leveraging forces behind new product development, manufacturing, and supply chain management policies of a firm. The modularization function also allows us to study the implications of modularization from different theoretical perspectives, such as resource-based view of the firm and transaction cost economics. Finally, the application of the modularization function and its limitations are discussed. Key words: modularity, product architectur

Modularization assessment of product architecture

Modularization refers to the opportunity for mixing-and-matching of components in a modular product design in which the standard interfaces between components are specified to allow for a range of variation in components to be substituted in a product architecture. It is through mixing-and-matching of these components, and how these components interface with one another, that new systems are created. Consequently, the degree of modularization inherent in a system is highly dependent upon the components and the interface constraints shared among the components, modules, and sub-systems. In this paper, a mathematical model is derived for analyzing the degree of modularization in a given product architecture by taking into consideration the number of components, number of interfaces, the composition of new-to-the-firm (NTF) components, and substitutability of components. An analysis of Chrysler windshield wipers controller suggests that two product architectures may share similar interface constraints, but the opportunity for modularization of one module is significant higher than the other due to the higher substitutability of its components and lower composition of NTF components