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Measuring the Cost Effects of Modular Product Architectures — A Conceptual Approach

Author

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  • Henning Skirde

    (Institute of Business Logistics and General Management, Hamburg University of Technology, Am Schwarzenberg-Campus 4, 21073 Hamburg, Germany)

  • Wolfgang Kersten

    (Institute of Business Logistics and General Management, Hamburg University of Technology, Am Schwarzenberg-Campus 4, 21073 Hamburg, Germany)

  • Meike Schröder

    (Institute of Business Logistics and General Management, Hamburg University of Technology, Am Schwarzenberg-Campus 4, 21073 Hamburg, Germany)

Abstract

Modular product architectures offer a solution for the trade-off between offering the market a wide variety of products and improving a company’s internal cost situation. However, individual cost effects that determine the extent to which modularity should be applied to product architecture are widely unknown in industry. In this paper, we develop a conceptual approach to provide suggestions for improving an examined modular product architecture from a cost perspective. Our work makes an important contribution: The conceptual approach accentuates which steps are necessary in order to recommend whether the product architecture’s current degree of modularity should be enhanced or diminished.

Suggested Citation

  • Henning Skirde & Wolfgang Kersten & Meike Schröder, 2016. "Measuring the Cost Effects of Modular Product Architectures — A Conceptual Approach," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 13(04), pages 1-23, August.
    • Handle: RePEc:wsi:ijitmx:v:13:y:2016:i:04:n:s0219877016500176
    DOI: 10.1142/S0219877016500176
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    References listed on IDEAS

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    Cited by:

    1. Brylowski, Martin & Ludwig, Maximilian & Kersten, Wolfgang & Schultze, Wolfgang, 2020. "Product modularization in integrated supply chains: A product life-cycle phase specific concept for effect allocation," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Blecker, Thorsten & Ringle, Christian M. (ed.), Data Science and Innovation in Supply Chain Management: How Data Transforms the Value Chain. Proceedings of the Hamburg International Conference of Lo, volume 29, pages 25-76, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    2. Skirde, Henning & Steinert, Robert, 2018. "About the future role of software in the product," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Blecker, Thorsten & Ringle, Christian M. (ed.), The Road to a Digitalized Supply Chain Management: Smart and Digital Solutions for Supply Chain Management. Proceedings of the Hamburg International C, volume 25, pages 143-155, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.

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