Exploratory analysis of the variables prevailing on the effects of product modularization on production volume and efficiency

• Published in: International journal of production economics Vol. 193; pp. 677 - 690
• Main Authors: Barbosa, Luziane Machado, Lacerda, Daniel Pacheco, Piran, Fabio Antonio Sartori, Dresch, Aline
• Format: Journal Article
• Language: English
• Published: Elsevier B.V 01.11.2017
• Subjects: Artificial neural network; Data envelopment analysis; Effects of modularization; Efficiency; Modularity; Modularization; Modularization; Artificial neural network; Efficiency; Modularity; Effects of modularization; Data envelopment analysis
• ISSN: 0925-5273; 1873-7579
• DOI: 10.1016/j.ijpe.2017.08.028

Product modularization is considered a strategic alternative supporting companies in their search for competitive advantages. Such advantages are acceleration of product development process, increase in the variety of products and improved operational performance. However, there are few studies verifying and quantifying the effects of product modularization on the performance of companies. This research, through a case study, aims at identifying and comparing variables influencing most effects of product modularization on production volume and efficiency of a bus manufacturer. To achieve such a purpose, a longitudinal analysis of Product Engineering and Production Process indicators was performed considering products before and after modularization. Data envelopment analysis (DEA) and Artificial Neural Network (ANN) were used as analytical methods. Among the main results, the variables that influenced most increase in efficiency after product modularization resulted from strategic decisions made during the modularization process. Among these decisions, the most important are standardization of modules, rationalization of resources and specialization of tasks. Variables related to physical resources outweighed effects on production volume and efficiency for products before modularization. However, after product modularization, variables related to strategic resources begin to prevail.