Developing a process for modular product management : Linking the development of modular products with product strategy and business objectives
Toukola, Tuomas (2024)
Toukola, Tuomas
2024
Konetekniikan DI-ohjelma - Master's Programme in Mechanical Engineering
Tekniikan ja luonnontieteiden tiedekunta - Faculty of Engineering and Natural Sciences
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Hyväksymispäivämäärä
2024-11-21
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:tuni-202409178778
https://urn.fi/URN:NBN:fi:tuni-202409178778
Tiivistelmä
Modular product structures have proved to be valuable for companies that seek to meet varying customer needs with their products. Modular product structures make it easier to adapt to new requirements and attain growth in new markets. The amount of complexity caused by the extension of the offering varies depending on how modularity is implemented in the products. This means that the profitability of extending the offering is affected by the decisions made regarding the modular product structures.
Companies often base the decisions to extend their offering on simplistic profit calculations that do not take the additional costs from added complexity into account. The added costs from this complexity might be substantial if the new optionality to be offered was not taken into account when the modular product structure was designed. Over time the complexity in the product structure and value stream builds up when even more optionality is added. This in turn worsens the company's business performance. This thesis uses the action research methodology to study possible ways to make better decisions regarding the offering and modular product structure development during the lifetime of a product.
The case company in this thesis struggled with evaluating the total impacts of decisions made regarding the offered variety or standardization of components in the products. The objective of this thesis was to provide the means to manage the products in a way that promotes the business objectives, help in evaluating the business impacts of decisions made, and educating the company of the overall impacts of modular product management decisions.
During the literature review there was no process found that would have been directly applicable for use in the ongoing management of a modular product structure in the case company. A new process was formed based on existing processes found in the literature review and literature related to the management of a product platform. This process was then augmented with a further literature review, where three main steps of the process were defined in further detail.
The process was applied in the case company in a workshop environment, where the fit of the process for the case company's needs was tested. The proposed process and business impact analysis template proved to support the management of a modular product, and helped in recognizing the issues, creating improvement suggestions and evaluating the business impacts. Some further development needs for the process were also recognized.
The action research methodology supported learning within the organization by involving personnel from various departments in the discussions.
Companies often base the decisions to extend their offering on simplistic profit calculations that do not take the additional costs from added complexity into account. The added costs from this complexity might be substantial if the new optionality to be offered was not taken into account when the modular product structure was designed. Over time the complexity in the product structure and value stream builds up when even more optionality is added. This in turn worsens the company's business performance. This thesis uses the action research methodology to study possible ways to make better decisions regarding the offering and modular product structure development during the lifetime of a product.
The case company in this thesis struggled with evaluating the total impacts of decisions made regarding the offered variety or standardization of components in the products. The objective of this thesis was to provide the means to manage the products in a way that promotes the business objectives, help in evaluating the business impacts of decisions made, and educating the company of the overall impacts of modular product management decisions.
During the literature review there was no process found that would have been directly applicable for use in the ongoing management of a modular product structure in the case company. A new process was formed based on existing processes found in the literature review and literature related to the management of a product platform. This process was then augmented with a further literature review, where three main steps of the process were defined in further detail.
The process was applied in the case company in a workshop environment, where the fit of the process for the case company's needs was tested. The proposed process and business impact analysis template proved to support the management of a modular product, and helped in recognizing the issues, creating improvement suggestions and evaluating the business impacts. Some further development needs for the process were also recognized.
The action research methodology supported learning within the organization by involving personnel from various departments in the discussions.
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