Constructing a virtuous cycle of manufacturing agility: concurrent roles of modularity in improving agility and reducing lead time

Abstract The implementation of modularity coupled with the application of platform strategy enables vertical product line extension to satisfy dynamic fast-changing customer preferences. Modularity plays crucial roles in strengthening positive correlations between a platform of products and models, and/or its derivative models. Simultaneously, modularity increased manufacturing agility. This paper focuses on the automotive industry with the objective of investigating the concurrent roles of modularity in improving the agility of manufacturing and reducing manufacturing lead time. Our findings provide supportive demonstrations to the research hypotheses. First, in investigating the effect of modularity towards agility, we find that by playing with various possibilities for combining modules, it is possible to assemble a single flexible production line: (i) a single model in several variants, as long as production is organized in such a way as to ensure the co-ordination of the variety, (ii) several models, whereas each of which is a variation of a single platform, and (iii) customized models, simply by rearranging the different variations of the modules. Second, with respect to these findings, there is evidence that an increase in manufacturing agility reduces manufacturing lead time, which has become a significant factor in corporate competency. Modularity as a source of comprehensive innovation kickstarts the learning process that enables auto manufacturers to explore new methods of designing and manufacturing automotive products.