Modularity and Interface Management: The Case of Schindler Elevators

Modularity refers to the scheme by which interfaces shared among components in a given product architecture are standardized and specified to allow for greater reusability and commonality sharing of components among product families. The management of innovation through modular product architecture strategies is gaining increasing importance for firms, not only in practice but also from a theoretical perspective. It is argued that the degree of modularity inherent in a given product architecture is sensitive and highly dependent upon the number of components and the interface constraints shared among the components, modules, sub-systems, and systems. This paper applies a mathematical model, termed modularization function, for analyzing dynamics and the degree of modularity of a given product architecture by taking into account the following variables: number of components, number of interfaces, new-to-the-firm component composition, and substitutability factor. The application of the modularization function is illustrated with two elevator systems from Schindler Lifts of Switzerland: traction and hydraulic elevators. The comparative analysis of the elevators captures the sensitivity and dynamics of product architecture modularity created by three types of components (standard, neutral, and unique) and two types of interfaces (fundamental and optional).

[1]  K. Ulrich,et al.  Planning for Product Platforms , 1998 .

[2]  M. Tushman,et al.  On the Organizational Determinants of Technological Change: Towards a Sociology of Technological Evolution , 1992 .

[3]  S. Kotha.  Mass customization: Implementing the emerging paradigm for competitive advantage , 1995 .

[4]  Marc H. Meyer,et al.  The power of product platforms : building value and cost leadership , 1997 .

[5]  R. Langlois,et al.  Networks and innovation in a modular system: Lessons from the microcomputer and stereo component industries , 1992 .

[6]  James M. Utterback,et al.  The product family and the dynamics of core capability , 1992 .

[7]  Toby B Gooley.  MASS CUSTOMIZATION: HOW LOGISTICS MAKES IT HAPPEN , 1998 .

[8]  Milton D. Rosenau,et al.  Mastering the dynamics of innovation: How companies can seize opportunities in the face of technological change , 1995 .

[9]  Bill Fulkerson.  A response to dynamic change in the market place , 1997, Decis. Support Syst..

[10]  S. Kotha.  Mass Customization: The New Frontier in Business Competition , 1992 .

[11]  Ron Sanchez,et al.  Modularity, flexibility, and knowledge management in product and organization design , 1996 .

[12]  H. Commandeur,et al.  Restructuring European supply chains by implementing postponement strategies , 1999 .

[13]  Ron Sanchez,et al.  Strategic product creation: Managing new interactions of technology, markets, and organizations , 1996 .

[14]  Juliana Hsuan Mikkola.  Impacts of supplier-buyer relationships on modularization in new product development , 1999 .

[15]  Oliver Gassmann,et al.  Managing Global Innovation: Uncovering the Secrets of Future Competitiveness , 1999 .

[16]  James M. Utterback,et al.  Mastering the Dynamics of Innovation , 1996 .

[17]  Marc H. Meyer,et al.  Metrics for Managing Research and Development in the Context of the Product Family , 1997 .

[18]  James M. Utterback,et al.  Mastering the Dynamics of Innovation: How Companies Can Seize Opportunities in the Face of Technological Change , 1994 .

[19]  Niklas Sundgren,et al.  Remodularization of a Product Line: Adding Complexity to Project Management , 1996 .

[20]  Hau L. Lee,et al.  Mass Customization at Hewlett-Packard : The Power of Postponement , 1999 .

[21]  Carliss Y. Baldwin,et al.  Managing in an age of modularity. , 1997, Harvard business review.

[22]  O. Gassmann,et al.  New concepts and trends in international R&D organization , 1999 .

[23]  Scott Schaefer,et al.  Product design partitions with complementary components , 1999 .

[24]  Juliana Hsuan Mikkola,et al.  Product Architecture Design: Implications for Modularization and Interface Management , 2000 .

[25]  Ron Sanchez,et al.  Modular Architectures in the Marketing Process , 1999 .

[26]  Juliana Hsuan Mikkola,et al.  Modularization assessment of product architecture , 2000 .

[27]  J. Hsuan.  Modularization in New Product Development: A Mathematical Modeling Approach , 1999 .

[28]  Gilmore Jh,et al.  The four faces of mass customization. , 1997 .

[29]  Clayton M. Christensen,et al.  Explaining the attacker's advantage: Technological paradigms, organizational dynamics, and the value network , 1995 .

[30]  Karl T. Ulrich,et al.  Product Design and Development , 1995 .

[31]  Kim B. Clark,et al.  Architectural Innovation: The Reconfiguration of Existing Product Technologies and the Failure of , 1990 .

[32]  O. Gassmann,et al.  Organization of industrial R&D on a global scale , 1998 .