Customer demands and global markets prompt companies to offer increasing product variety. The use of modular product structures is a possible strategy for providing the necessary external variety to the market and reducing costs by lowering internal variety within the company. Current research provides several approaches for developing modular product family structures. As modularity is a gradual property, these methods generate different product structure concepts and companies have to decide at an early stage and without detailed information which concepts to implement. Most existing modularization methods offer only little or no support for decision making, particularly in terms of cost effects. This article illustrates the cost effects of variety and modular product family structures, the various cost impacts of variety management strategies and modularization methods in a literature review. A new approach to quantify these cost effects to support concept selection during modular product family design is introduced.

References

References
1.
Ehrlenspiel
,
K.
,
Kiewert
,
A.
, and
Lindemann
,
U.
,
2007
,
Kostengünstig Entwickeln und Konstruieren: Kostenmanagement bei der Integrierten Produktentwicklung
,
6th ed.
,
Springer-Verlag
,
Berlin
.
2.
Salvador
,
F.
,
2007
, “
Toward a Product System Modularity Construct: Literature Review and Reconceptualization
,”
IEEE Trans. Eng. Manage.
,
54
(
2
), pp.
219
240
.
3.
Wilson
,
S. A.
, and
Perumal
,
A.
,
2010
,
Waging War on Complexity Costs: Reshape Your Cost Structure, Free up Cash Flows, and Boost Productivity by Attacking Process, Product and Organizational Complexity
,
McGraw-Hill
,
New York
.
4.
Krause
,
D.
,
Gebhardt
,
N.
, and
Kruse
,
M.
,
2016
, “
Gleichteile-, Modul- und Plattformstrategie
,”
Handbuch Produktentwicklung
,
U. Lindemann, Hrsg., Carl Hanser Verlag
,
München, Germany
, S. pp.
111
149
.
5.
Krause
,
D.
, and
Ripperda
,
S.
,
2013
, “
An Assessment of Methodical Approaches to Support the Development of Modular Product Families
,”
19th International Conference on Engineering Design
,
ICED13
, Seoul, South Korea, Aug. 19–22, Paper No. 294.
6.
Simpson
,
T. W.
,
Jiao
,
J.
,
Siddique
,
Z.
, and
Hölttä-Otto
,
K.
, eds.,
2014
,
Advances in Product Family and Product Platform Design: Methods & Applications
,
Springer
,
New York
.
7.
Rathnow
,
P. J.
,
1993
,
Integriertes Variantenmanagement: Bestimmung, Realisierung und Sicherung der Optimalen Produktvielfalt
,
Vandenhoeck & Ruprecht
,
Göttingen, Germany
.
8.
Schuh
,
G.
,
2005
,
Produktkomplexität Managen: Strategien—Methoden—Tools
,
2nd ed.
,
Hanser
,
München, Germany
.
9.
Thonemann
,
U. W.
, and
Brandeau
,
M. L.
,
2000
, “
Optimal Commonality in Component Design
,”
Component Design Oper. Res.
,
48
(1), pp. 1–19.
10.
Bohne
,
F.
,
1998
,
Komplexitätskostenmanagement in der Automobilindustrie: Identifizierung und Gestaltung Vielfaltsinduzierter Kosten
,
Gabler
,
Wiesbaden, Germany
.
11.
Ripperda
,
S.
, and
Krause
,
D.
,
2013
, “
Komplexitätskosteneffekte Modularer Produktfamilien
,”
DfX-Symposium
, Vol.
24
, pp. 13–24.
12.
Anderson
,
D. M.
,
2004
,
Build-to-Order and Mass Customization: The Ultimate Supply Chain Management and Lean Manufacturing Strategy for Low-Cost on-Demand Production Without Forecasts or Inventory
,
CIM Press
,
Cambria, CA
.
13.
Cameron
,
B. G.
, and
Crawley
,
E. F.
,
2014
, “
Crafting Platform Strategy Based on Anticipated Benefits and Costs
,”
Advances in Product Family and Product Platform Design
,
T. W.
Simpson
,
J.
Jiao
,
Z.
Siddique
, and
K.
Hölttä-Otto
, eds.,
Springer
,
New York
, pp.
49
70
.
14.
Fixson
,
S. K.
,
2007
, “
Modularity and Commonality Research: Past Developments and Future Opportunities
,”
Concurrent Eng.
,
15
(
2
), pp.
85
111
.
15.
Gershenson
,
J. K.
,
Prasad
,
G. J.
, and
Zhang
,
Y.
,
2003
, “
Product Modularity: Definitions and Benefits
,”
J. Eng. Des.
,
14
(
3
), pp.
295
313
.
16.
Collier
,
D. A.
,
1980
, “
Justifying Component Part Standardization
,”
Twelfth National AIDS Conference
, Las Vegas, NV, p. 405.
17.
Jakkula
,
V.
,
Jouni
,
L.
, and
Soumala
,
P.
,
2006
, “
Measuring Cost Effects of Component Commonality in Project-Oriented Business
,”
XIV International Working Seminar on Production Economics
, pp.
1
10
.
18.
Thyssen
,
J.
,
Israelsen
,
P.
, and
Jørgensen
,
B.
,
2006
, “
Activity-Based Costing as a Method for Assessing the Economics of Modularization—A Case Study and Beyond
,”
Int. J. Prod. Econ.
,
103
(
1
), pp.
252
270
.
19.
Ulrich
,
K.
,
1995
, “
The Role of Product Architecture in the Manufacturing Firm
,”
Res. Policy
,
24
(3), pp.
419
440
.
20.
Fisher
,
M.
,
Ramdas
,
K.
, and
Ulrich
,
K.
,
1999
, “
Component Sharing in the Management of Product Variety: A Study of Automotive Braking Systems
,”
Manage. Sci.
,
45
(3), pp.
297
315
.
21.
Krishnan
,
V.
, and
Gupta
,
S.
,
2001
, “
Appropriateness and Impact of Platform-Based Product Development
,”
Manage. Sci.
,
47
(1), pp.
52
68
.
22.
Gerhenson
,
J.
,
Prasad
,
G.
, and
Zhang
,
Y.
,
2003
, “
Product Modularity: Definitions and Benefits
,”
J. Eng. Des.
,
14
(3), pp.
295
313
.
23.
Nobelius
,
D.
, and
Sundgren
,
N.
,
2002
, “
Managerial Issues in Parts Sharing Among Product Development Projects: A Case Study
,”
J. Eng. Technol. Manage.
,
19
(1), pp.
59
73
.
24.
Halman
,
J.
,
Hofer
,
A.
, and
van Vuuren
,
W.
,
2003
, “
Platform-Driven Development of Product Families: Linking Theory With Practice
,”
J. Prod. Innov. Manage.
,
20
(2), pp.
149
162
.
25.
Feitzinger
,
E.
, and
Lee
,
H. L.
,
1997
, “
Mass Customization at Hewlett-Packard: The Power of Postponement
,”
Harvard Business Rev.
,
75
(1), pp.
116
121
.
26.
Jans
,
R.
,
2008
, “
Analysis of an Industrial Component Commonality Problem
,”
Eur. J. Oper. Res.
,
186
(2), pp.
801
811
.
27.
Jeschke
,
A.
,
1996
, “
Beitrag zur Wirtschaftlichen Bewertung von Standardisierungsmaßnahmen in der Einzel- und Kleinserienfertigung Durch die Konstruktion, (deu)
,” University dissertation, Technical Universität Braunschweig.
28.
Schulte
,
C.
, ed.,
1992
,
Effektives Kostenmanagement: Methoden und Implementierung
,
Schäffer-Poeschel
,
Stuttgart, Germany
.
29.
Hillier
,
M.
,
2000
, “
Component Commonality in Multiple-Period Assemble-to-Order Systems
,”
IIE Trans.
,
32
(
8
), pp.
755
766
.
30.
da Cunha
,
C.
,
Agard
,
B.
, and
Kusiak
,
A.
,
2007
, “
Design for Cost: Module-Based Mass Customization
,”
IEEE Trans. Autom. Sci. Eng.
,
4
(
3
), pp.
350
359
.
31.
Muffatto
,
M.
,
1999
, “
Introducing a Platform Strategy in Product Development
,”
Int. J. Prod. Econ.
,
60–61
, pp.
145
153
.
32.
Zich
,
C.
,
1996
, “
Integrierte Typen- und Teileoptimierung: Neue Methoden des Produktprogramm-Managements
,” University dissertation—Kassel, 1995, Dt. Univ.-Verl., Wiesbaden, Germany.
33.
Hohnen
,
T.
,
Pollmanns
,
J.
, and
Feldhusen
,
J.
,
2013
, “
Cost-Effects of Product Modularity—An Approach to Describe Manufacturing Costs as a Function of Modularity
,”
Smart Product Engineering
,
Springer-Verlag
,
Berlin
, pp.
745
754
.
34.
Simpson
,
T.
,
Seepersad
,
C.
, and
Mistree
,
F.
,
2001
, “
Balancing Commonality and Perfor-Mance Within the Concurrent Design of Multiple Products in a Product Family
,”
Concurrent Eng.
,
9
(3), pp.
177
190
.
35.
Ulrich
,
K.
, and
Tung
,
K.
,
1991
, “
Fundamentals of Product Modularity
,” ASME Winter Ann. Meeting Sympos. Design and Manufacturing Integration, Atlanta, GA, Nov., pp. 73–79.
36.
Krikke
,
H.
,
Blanc
,
I. I.
, and
van de Velde
,
S.
,
2004
, “
Product Modularity and the Design of Closed-Loop Supply Chains
,”
Calif. Manage. Rev.
,
46
(
2
), pp.
23
39
.
37.
Hichert
,
R.
,
1986
, “
Probleme der Vielfalt: Teil 2: Was Kostet Eine Variante?
,”
Z. Ind. Fertigung
,
76
, pp.
141
145
.
38.
Roy
,
R.
,
Evans
,
R.
,
Low
,
M. J.
, and
Williams
,
D. K.
,
2011
, “
Addressing the Impact of High Levels of Product Variety on Complexity in Design and Manufacture
,”
Proc. Inst. Mech. Eng. Part B
,
225
(
10
), pp.
1939
1950
.
39.
Wildemann
,
H.
,
2014
,
Komplexitätsmanagement: In Vertrieb, Beschaffung, Produkt, Entwicklung und Produktion
,
15th ed.
,
TCW Transfer-Centrum Verl.
,
München, Germany
.
40.
Ulrich
,
K. T.
, and
Eppinger
,
S. D.
,
2004
,
Product Design and Development
,
3rd ed.
,
McGraw-Hill
,
Boston, MA
.
41.
Stone
,
R.
,
1997
, “
Towards a Theory of Modular Design
,”
Ph.D. dissertation
, University of Texas, Austin, TX.
42.
Erixon
,
G.
,
1998
, “
Modular Function Deployment—A Method for Product Modularisation
,”
University dissertation
, Royal Institute of Technology, Stockholm, Sweden.
43.
Simpson
,
T. W.
,
Bobuk
,
A.
,
Slingerland
,
L.
,
Brennan
,
S.
,
Logan
,
D.
, and
Reichard
,
K.
,
2012
, “
From User Requirements to Commonality Specifications: An Integrated Approach to Product Family Design
,”
Res. Eng. Des.
,
23
(
2
), pp.
141
153
.
44.
Halou
,
U.
,
2006
, “
Developing Product Families Based on Architectures
,”
University dissertation
, Technical University of Denmark, Copenhagen, Denmark.
45.
Lindemann
,
U.
,
Maurer
,
M.
, and
Braun
,
T.
,
2009
,
Structural Complexity Management: An Approach for the Field of Product Design
,
Springer
,
Berlin
.
46.
Krause
,
D.
,
Beckmann
,
G.
,
Eilmus
,
S.
,
Gebhardt
,
N.
,
Jonas
,
H.
, and
Rettberg
,
R.
,
2014
, “
Integrated Development of Modular Product Families: A Methods Toolkit
,”
Advances in Product Family and Product Platform Design
,
T. W.
Simpson
,
J.
Jiao
,
Z.
Siddique
, and
K.
Hölttä-Otto
, eds.,
Springer
,
New York
, pp.
245
269
.
47.
Otto
,
K.
,
Hölltä-Otto
,
K.
,
Simpson
,
T. W.
,
Krause
,
D.
,
Ripperda
,
S.
, and
Moon
,
S. K.
,
2016
, “
Global Views on Modular Design Research: Linking Alternative Methods to Support Modular Product Family Structure Design
,”
ASME J. Mech. Des.
,
138
(7), p. 071101.
48.
Hansen
,
C. L.
,
2014
, “
On the Identification of Architectures for Product Programs
,” University dissertation, Technical University of Denmark, Copenhagen, Denmark.
49.
Martin
,
M. V.
, and
Ishii
,
K.
,
1996
, “
Design for Variety: A Methodology for Understanding the Costs of Product Proliferation
,”
ASME
Paper No. 96-DETC/DTM-1610.
50.
Skirde
,
H.
,
2015
, “
Kostenorientierte Bewertung Modularer Produktarchitekturen
,” University dissertation, Hamburg University of Technology, Hamburg, Germany.
51.
Park
,
J.
, and
Simpson
,
T. W.
,
2008
, “
Toward an Activity-Based Costing System for Product Families and Product Platforms in the Early Stages of Development
,”
Int. J. Prod. Res.
,
46
(
1
), pp.
99
130
.
52.
Bahns
,
T.
,
Beckmann
,
G.
,
Gebhardt
,
N.
, and
Krause
,
D.
,
2015
, “
Sustainability of Modular Product Families
,”
20th International Conference on Engineering Design
,
ICED15
, Milan, Italy, July 27–30.
53.
Ripperda
,
S.
, and
Krause
,
D.
,
2014
, “
Costs in Modularization Approaches: A Co-Citation Analysis
,”
13th International Design Conference
,
DESIGN14
, Dubrovnik, Croatia, pp.
965
974
.
54.
Kipp
,
T.
, and
Krause
,
D.
,
2008
, “
Design for Variety—Efficient Support for Design Engineers
,”
10th International Design Conference—Design 2008
, Dubrovnik, Croatia, pp.
425
432
.
55.
Kipp
,
T.
,
Blees
,
C.
, and
Krause
,
D.
,
2010
, “
Anwendung Einer Integrierten Methode zur Entwicklung Modularer Produktfamilien
,”
Design for X—Beiträge zu 21, DfX-Symposium
, Hamburg, Germany, pp. 157–169.
56.
Blees
,
C.
,
Kipp
,
T.
,
Beckmann
,
G.
, and
Krause
,
D.
,
2010
, “
Development of Modular Product Families: Integration of Design for Variety and Modularization
,”
8th International Norddesign Conference
, Gothenburg, Germany, A. Dagman, and R. So€derberg, eds., pp. 159–168.
57.
Eilmus
,
S.
,
Gebhardt
,
N.
,
Rettberg
,
R.
, and
Krause
,
D.
,
2012
, “
Evaluating a Methodical Approach for Developing Modular Product Families in Industrial Case Studies
,”
12th International Design Conference
,
DESIGN12
, Dubrovnik, Croatia, pp.
837
846
.
58.
Kaplan
,
R. S.
, and
Anderson
,
S. R.
,
2007
,
Time-Driven Activity-Based Costing: A Simpler and More Powerful Path to Higher Profits
,
Harvard Business School Press
,
Boston, MA
.
59.
Park
,
J.
, and
Simpson
,
T. W.
,
2005
, “
Development of a Production Cost Estimation Framework to Support Product Family Design
,”
Int. J. Prod. Res.
,
43
(
4
), pp.
731
772
.
60.
Siddique
,
Z.
, and
Repphun
,
B.
,
2002
, “
Estimating Cost Savings When Implementing a Product Platform Approach
,”
Concurrent Eng.: Res. Appl.
,
9
(
4
), pp.
285
294
.
61.
Ripperda
,
S.
, and
Krause
,
D.
,
2015
, “
Cost Prognosis of Modular Product Structure Concepts
,”
20th International Conference on Engineering Design
,
ICED15
, Milan, Italy, July 27–30.
62.
Vahs
,
D.
, and
Brem
,
A.
,
2013
,
Innovations Management: Von der Idee zur Erfolgreichen Vermarktung
,
4th ed.
,
Schäffer-Poeschel
,
Stuttgart, Germany
.
63.
Hicks
,
D. T.
,
1999
,
Activity-Based Costing: Making it Work for Small and Mid-Sized Companies
,
2nd ed.
,
Wiley
,
New York
.
64.
Blees
,
C.
, and
Krause
,
D.
,
2008
, “
On the Development of Modular Product Structures: A Differentiated Approach
,”
10th International Design Conference—Design 2008
, Dubrovnik, Croatia, pp.
301
308
.
65.
Gebhardt
,
N.
,
Bahns
,
T.
, and
Krause
,
D.
,
2014
, “
An Example of Visually Supported Design of Modular Product Families
,” 24rd
CIRP
Design Conference
, Milan, Italy, pp. 75–80.
66.
Meier
,
B.
, and
Bojarksi
,
S.
,
2013
, “
Ganzheitliches Modell zur Bewältigung Vielfalstinduzierter Komplexität
,”
ZWF
,
108
(
7–8
), pp.
547
551
.
67.
Hackl
,
J.
, and
Krause
,
D.
,
2016
, “
Effects of Modular Product Structures on Life Phases and Economic Factors
,”
14th International Design Conference
,
DESIGN16
, Dubrovnik, Croatia, pp. 1285–1294.
You do not currently have access to this content.