Join Now!

Join our welcoming International Design Community.

Read about the many benefits of becoming and remaining a member.

Full, Associate, Departmental and Institutional Membership available.

Complete this application form to join now.

Banner
Papers

Assessing the financial potential for modularization: A case study in a global OEM

Assessing the financial potential for modularization: A case study in a global OEM

Year: 2017

Section: Product, Services and Systems Design

Editor: Anja Maier, Stanko Škec, Harrison Kim, Michael Kokkolaras, Josef Oehmen, Georges Fadel, Filippo Salustri, Mike Van der Loos

Author: Lřkkegaard, Martin; Mortensen, Niels Henrik

Series: ICED

Institution: Technical University of Denmark, Denmark

Section: Product, Services and Systems Design

Pages: 021-030

ISBN: 978-1-904670-91-9

ISSN: 2220-4342

Abstract

Assessing the financial potential of implementing a strategy, based on sharing of key modules and interfaces across a portfolio is difficult. However, this is a critical input when deciding strategic direction in industrial organizations. Through a case study, this paper gives an example of how to map and evaluate the architectures in a portfolio to identify the financial potential for implanting a platform-based modularization strategy. The approach has been applied in a global world-leading OEM with 50.000+ product variants and a turnover of USD 3,5b (2015). The results show a potential for reducing the cost-base by up to 15% through systematically sharing of key design principles across 80% of the company’s portfolio. This has supported the discussion of adjusting innovation strategy in the organization. The core contribution of the paper is the operational application of the systematic Architecture Mapping and Evaluation approach (AME) and discussion of how it can support strategic decision-making related to modularization. The approach builds on the understanding that a top-down assessment can give a starting point for implementing a level of modularity across a portfolio.

Keywords: Platform strategies, Product architecture, Case study, Decision support

Buy NowBuy Now

Member price: 0.00 GBP (Join Now)
Full price: 3.00 GBP

Shopping Cart
ds conferenceICED17 The 21st International Conference on Engineering Design, 21-25th August 2017

ICED17 The 21st International Conference on Engineering Design, 21-25th August 2017The 21st International Conference on Engineering Design ICED17 to be held August 21-25, 2017, in Vancouver, British Columbia, Canada. Theme: Resource-Sensitive Design Paper submission deadline: December 19, 2016 For full details go to: http://iced17.org. The forthcoming International Conference on Engineering Design, ICED17, will continue to be a great forum where the design community comes together to share insights, discover new ideas, create new design ventures, and form friendships....

Read More

Join Now!

Join our welcoming International Design Community.

Read about the many benefits of becoming and remaining a member.

Full, Associate, Departmental and Institutional Membership available.

Complete this application form to join now.

Keywords
SIG Workshop - March 2013