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Modular Product Family Development Within a SME

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Abstract

Product variation is becoming an important factor in companies’ ability to accurately meet customer requirements. Ever increasing consumer options mean that customers have more choice than ever before which puts commercial pressures on companies to continue to diversify. This can be a particular problem within Small to Medium Enterprises (SMEs) who do not always have the level resources to meet these requirements. As such, methods are required that provide means for companies to be able to produce a wide range of products at the lowest cost and shortest time. This paper details a new modular product design methodology that provides a focus on developing modular product families. The methodology’s function is described and a case study detailed of how it was used within a SME to define the company’s product portfolio and create a new Generic Product Function Structure from which a new family of product variants can be developed. The methodology lends itself to modular re-use which has the potential to support rapid development and configuration of product variants.

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... It has been successfully implemented in large-scale industries throughout the years, for example, automobile, aircraft, and industrial equipment industries, such as Ford, Airbus, ABB, and Danfoss (Otto et al., 2016). There have also been records of successful use within SMEs (Myrodia et al., 2017;Stewart and Yan, 2008). ...
... Modularization has been applied successfully in large industries and scopes throughout the years (Meyer and Lehnerd, 1997;Otto et al., 2016;Simpson, 2003). Although many of the tools were developed through large companies, records exist of successful use of modularization within SMEs (Myrodia et al., 2017;Stewart and Yan, 2008;Sundgren, 1999). The definition of modularization is very diverse in literature. ...
... The identified papers focus on different aspects of modularization and its implementation. Among the case study-or empirical study-based research, some studies included only large companies (Appelqvist and Gubi, 2004;de Avila and Borsato, 2014;Feitzinger and Lee, 1997;Løkkegaard and Mortensen, 2017;Meyer and Dalal, 2001;Muffatto, 1999;Nobeoka and Cusumano, 1997;Pasche, 2011;Piran et al., 2017;Stewart and Yan, 2008;Wouters and Kerssens-van Drongelen, 2004). The rest included both large companies and SMEs or focused solely on the latter (Antonio et al., 2007;Dadfar et al., 2013;Engel et al., 2016;Fagerstrom and Jackson, 2003;Hansen and Sun, 2011;Haug et al., 2012;Huang et al., 2010;Hvam et al., 2013;Saliba et al., 2017;Stewart and Yan, 2008;Sundgren, 1999). ...
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Long-term commonalities and experiences with modularization in comparable small- and medium-sized enterprises have been identified as a research gap. This article contributes by describing a unique collection of experiences from companies that received a similar introduction to the same core modularization topics through a series of introductory initiatives. This shared introduction makes the projects and processes of the companies comparable. The study reveals three main aspects of achieving significant long-term benefits from modularization initiatives: the company must (1) aim big and be willing to change its foundation accordingly, (2) draw on the right positional strength and have broad organizational inputs, and (3) properly coordinate work and then actively seek to preserve the focus and results over a long period of time. Interviews were conducted with representatives from 12 of these companies. Qualitative and quantitative data obtained from the interviews were used to draw parallels between the definition, execution, and impact of modularization. The stated results and project circumstances show commonalities for the successful implementation of modularization. They indicate which actions lead to the desired changes and secure the results persistently. The participants have achieved various results, such as strategic changes, new architectures, fewer variants, higher product earnings, and new development processes. Some have also introduced maintenance plans to secure the results, such as establishing configurators, performing weekly analyses, recruiting dedicated personnel, and so on. The interviews revealed several influencing factors, such as management support, internal communication, organizational drive, proper facilitation, and prioritized project management. They also indicated that significantly more improvement can be achieved with proper goal setting and commitment to specific goals. These are the factors that can help future small- and medium-sized enterprises in the proper incorporation of modularization and in maximizing their exploitation of modularization theory.
... Four different modularity approaches were introduced in the PEC field; PEBB, MIC, MMC, and PCA. According to Stewart and Yan (2008), structural independence and functional independence are essential characteristics of a module. [29]. ...
... According to Stewart and Yan (2008), structural independence and functional independence are essential characteristics of a module. [29]. In accordance with this definition. ...
... The idea behind a modular design is to allow the combination of distinct modules e through defined interfaces e to compose products. There are a variety of concepts on this subject, but according to Stewart and Yan (2008), the principal characteristics related to modularity are the structural independence, functional independence, minimization of interfaces and interactions with other modules and of external influences. Modularity facilitates upgrades, adaptations, modifications and product assembly and disassembly, it also increases product variety, enables economies of scale and reduces production time. ...
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