MODULARIZATION MANAGEMENT AND NETWORK CONFIGURATION

A given product structure will have a crucial effect on the performance of the operations network. The product structure will impact the potential configuration of the product according to the customer needs, and, furthermore, impact the cost, quality and speed of delivery. It is generally recognized that a modular product structure will have an improved effect on all of these performance parameters, but empirical studies prove that many companies are challenged in realizing the full benefits of modular product structures. This paradox indicates that the cause-effect relationships between modularization and realized benefits are complex and comprehensive. Though a large number of research works have contributed to the study of efficient and effective modularization management it is far from being clear. Based on case based empirical studies the paper will present two frameworks to support the heuristic and iterative process of planning and realizing modularization benefits. This is to be seen as the critical elements in efficient network configurations