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MODULARIZATION AS STRATEGY

WHAT IS MODULARIZATION

Modularization is a holistic approach that expands across the entire value chain and can increase efficiency and competitiveness. It involves targeted adjustments of product ranges, manufacturing processes, and market approaches that impact customer relations due to increased flexibility and customization.

Modules are important in modularization as they are building blocks that make up a larger modular system. The use of predefined modules reduces internal complexity and limits the total number of components and spare parts. This results in highly configurable products that can reach many customer groups quickly, increasing competitiveness and reducing value chain complexity while maintaining cost-effectiveness.

Modular strategies are beneficial in product development as they optimize the properties of individual modules, which can be combined crosswise to configure different products. Thus, modularization is a companywide strategy that enables companies to achieve market penetration and create new business models.

MODULARIZATION TERMINOLOGY

MODULE

A modular component, somewhat comparable to a building block. Within a modular product architecture, one module can be replaced with another without changing the design itself.

MODULAR PRODUCT ARCHITECTURE

The structure of a product design that describes how different independent modules can be combined to create complete products. This allows for serving varying functions, meeting diverse customer preferences, and fulfilling changing requirements based on a limited set of modules. When developing a new product, it can be built from the pool of existing modules. The fact that modules can be produced independently of each other and assembled into products later also makes the production process more efficient.

INTERFACE

A feature that determines how one module interacts with other modules. By using standardized interfaces, it is possible to replace one module variant with other modules, for example, to meet a specific specification requirement in a product without changing the design itself.

MODULAR SYSTEM

A collection of components that can be configured in various ways to meet diverse requirements, desires, or needs expressed by the customer. A single modular system can serve as the foundation for several different modular product architectures.

MODULAR MANUFACTURING

The development and use of a modular platform with the aim of achieving strategic advantages, such as faster, larger, and/or cheaper configuration of product variants, made possible by the flexibility of modularization.

STRATEGIC MODULARIZATION

OUR APPROACH IN NEM
  • Strategic modlarization is a value-creating concept that enhances competitiveness by freeing up resources across a the value chain.
  • Strategic modularization is a change model that is crucial to achieving a high level of competitiveness in Industry 4.0.

A strategic approach to modularization aims to redefine product programs and supply chains to meet customer needs and achieve competitive advantage. Manufacturing efficiency is optimized through flexible and automated production processes, supported by modular products s that enable easy customization through module configuration.

Unlike the narrow focus on individual products or projects that is found in previous modularization approaches, strategic modularization is holistic, as it aims to optimize the entire company.