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Product modularization and effects on efficiency: An analysis of a bus manufacturer using data envelopment analysis (DEA)

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  • Piran, Fabio Antonio Sartori
  • Lacerda, Daniel Pacheco
  • Camargo, Luis Felipe Riehs
  • Viero, Carlos Frederico
  • Dresch, Aline
  • Cauchick-Miguel, Paulo Augusto

Abstract

Improvement of efficiency and productivity is a contemporary challenge for industrial organizations. Product modularization is considered a strategic alternative to achieve such objectives. However, empirical evidence supporting these expectations are scarce in the literature. Thus, it is necessary to assess the effects of modularization on the improvement of the efficiency of a company field or a production system. In this context, this study aims to analyze the effects of product modularization on the efficiency of the Product Engineering and the Production Process of a bus manufacturer. The effects were evaluated through a case study using Data Envelopment Analysis, Analysis of Variance and Causal Impact. The results show that product modularization provided statistically significant improvements in efficiency. The results also establish and empirically support a causality (Causal Impact) between modularization and improvement in the efficiency of the Product Engineering and the Production Process of the company analyzed.

Suggested Citation

  • Piran, Fabio Antonio Sartori & Lacerda, Daniel Pacheco & Camargo, Luis Felipe Riehs & Viero, Carlos Frederico & Dresch, Aline & Cauchick-Miguel, Paulo Augusto, 2016. "Product modularization and effects on efficiency: An analysis of a bus manufacturer using data envelopment analysis (DEA)," International Journal of Production Economics, Elsevier, vol. 182(C), pages 1-13.
    • Handle: RePEc:eee:proeco:v:182:y:2016:i:c:p:1-13
    DOI: 10.1016/j.ijpe.2016.08.008
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    2. Barbosa, Luziane Machado & Lacerda, Daniel Pacheco & Piran, Fabio Antonio Sartori & Dresch, Aline, 2017. "Exploratory analysis of the variables prevailing on the effects of product modularization on production volume and efficiency," International Journal of Production Economics, Elsevier, vol. 193(C), pages 677-690.
    3. Yin, Liang & He, Ming-Li & Xie, Wen-Bo & Yuan, Fei & Chen, Duan-Bing & Su, Yang, 2018. "A quantitative model of universalization, serialization and modularization on equipment systems," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 508(C), pages 359-366.
    4. Visani, Franco & Boccali, Filippo, 2020. "Purchasing price assessment of leverage items: A Data Envelopment Analysis approach," International Journal of Production Economics, Elsevier, vol. 223(C).
    5. Fabricio Eidelwein & Fabio Antonio Sartori Piran & Daniel Pacheco Lacerda & Aline Dresch & Luis Henrique Rodrigues, 2018. "Exploratory Analysis of Modularization Strategy Based on the Theory of Constraints Thinking Process," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 19(2), pages 111-122, June.
    6. Telles, Eduardo Santos & Lacerda, Daniel Pacheco & Morandi, Maria Isabel Wolf Motta & Piran, Fabio Antonio Sartori, 2020. "Drum-buffer-rope in an engineering-to-order system: An analysis of an aerospace manufacturer using data envelopment analysis (DEA)," International Journal of Production Economics, Elsevier, vol. 222(C).
    7. Rafael Marques & Rafael Teixeira & Daniel P. Lacerda & Fabio S. Piran, 2023. "Exploring outsourcing service productivity from the buyer and supplier perspective: A case analysis in the fleet maintenance industry," Operations Management Research, Springer, vol. 16(2), pages 853-867, June.
    8. Abolhassani, Amir & James Harner, E. & Jaridi, Majid, 2019. "Empirical analysis of productivity enhancement strategies in the North American automotive industry," International Journal of Production Economics, Elsevier, vol. 208(C), pages 140-159.
    9. Shiva Moslemi & Hamidreza Izadbakhsh & Marzieh Zarinbal, 2019. "A new reliable performance evaluation model: IFB-IER–DEA," OPSEARCH, Springer;Operational Research Society of India, vol. 56(1), pages 14-31, March.
    10. Piran, Fabio Sartori & Lacerda, Daniel Pacheco & Camanho, Ana S. & Silva, Maria C.A., 2021. "Internal benchmarking to assess the cost efficiency of a broiler production system combining data envelopment analysis and throughput accounting," International Journal of Production Economics, Elsevier, vol. 238(C).
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