13/12/2024. Modular Design: The Hidden Trap That May Limit Your Product’s Potential

Modularisation is frequently marketed as the ultimate solution for manufacturers—streamlining operations, lowering costs, and offering configurable products at scale. And when done well, it delivers on its promise. However, in a low-volume, high-mix industry, modularisation might quickly fail. If not correctly applied, it has the potential to stifle innovation and reduce revenues. That is not to say you should not do it; it is only that you must have the necessary expertise to make it work for your organisation.

Why Modular Design Does Not Always Deliver in High-Mix Markets.

The premise behind modular design is simple: create standard building pieces that can be reused across different products. However, attempting to cram everything into rigid modules may backfire in marketplaces with diverse client requirements.

It is not that modularisation is incorrect; rather, many businesses jump in without customising the strategy to their individual requirements. They end up constructing systems that are too stiff to meet real-world requirements.

If your clients anticipate flexibility, you must have a modular system that supports it rather than hinders it.

How Over-Standardisation Can Harm Your Business

Standardisation is great—until it isn’t. Too much of it can trap you into systems that aren’t designed to handle the complexities of your market.

Here’s how that happens:

1. Rigid Systems: Over-standardized systems require costly rework to accommodate unique customer needs.
2. Lack of Creativity: Engineers tend to focus on module tweaking rather than problem solutions, which hinders innovation.
3. Ageing Modules: As systems age, it becomes more challenging to integrate new tools or technology, perhaps leading to outmoded approaches.

However, these are not reasons to abandon modularisation totally. These are reasons to build smarter, more adaptive systems from the beginning.

Nobody discusses the costs.

What you don’t typically hear is that modularisation is more than just the first expenditure. If not done correctly, the hidden expenses might build up quickly:

• Engineering bottlenecks: Combining module development and special orders can cause delays.
• Production Hiccups: Bespoke features may not fit into standard modules, upsetting workflows.
• Missed opportunities: An inflexible method may save money now but prevent you from adapting to future market shifts.

Next to these challenges, the modular product portfolio must be maintained. Those are recurring expenses not incurred in an engineering-to-order (ETO) environment.

None of this means that modularisation is a terrible concept; it simply means that you need a specialised strategy to avoid these pitfalls.

If performed well, the benefits of modularisation far outweigh the additional recurring costs.

Case Study: Field Lessons.

The use of modular design in the machine-building sector has produced various results. The study “Identifying and Addressing Challenges in the Engineering Design of Modular Systems” analysed seven industry instances and discovered that while some organisations benefitted from modularity, others experienced increased costs and inefficiencies.

Similarly, the article “Empirical Study of Good, Bad, and Ugly Modular Engineering Solutions in Machinery Manufacturing Industry” stated that goods fulfilling modularity definitions produced a variety of commercial outcomes. In some cases, modularity had a detrimental impact on corporate performance, but in others, it significantly improved profitability.

These studies emphasise that without a specific modular strategy, companies may face:

• Increased Engineering Costs: Customising modules for different customer needs can increase expenses.
• Manufacturing Delays: Adapting conventional modules might affect manufacturing schedules.
• Inflexible modular systems may not satisfy client needs, leading to consumer dissatisfaction.

To address these problems, it is critical to design a modular strategy that strikes a balance between standardisation and the flexibility required to meet the needs of individual customers.

Engaging professionals to define your unlocking modular portfolio results in streamlined customisation procedures and increased operational efficiency and is foundational to fast growth.

Modular5 helps clients set up their products’ modular structure based on their unique market and company requirements and constraints. There is no one-size-fits-all solution, nor do we apply a standard process. We focus on what works for the client to ensure they fall into the highly beneficial cohort.

Smarter Modularisation for High Mix Markets

You do not have to pick between efficiency and flexibility. With the appropriate strategy, modularisation can provide both.

Here’s how Modular5® does it:

1. Reserve specific alterations until the end phases of production. This ensures that your main fabrication and assembly line execute smoothly and uninterrupted.
2. Use digital tools like Product Lifecycle Management (PLM) and Configure Price Quote software to manage variations efficiently.
3. Implement modularisation in small steps to allow for flexibility and adaptation.
4. Include the sales organisation in the transition; they need to sell the standard; otherwise, the disarray in your organisation will increase.

We term it “Smart Customisation” and “Modular Sales.” It’s not about putting your company into a tight framework; it’s about creating one that works for you.

The Bottom Line

Modular design is effective, but it is not a one-size-fits-all approach. If you want it to work, you must devise a strategy specific to your obstacles and goals. This is where Modular5 comes in. We specialise in developing modularisation strategies that balance standardisation and the flexibility your market requires.

Key Takeaways:

1. Modularisation improves flexibility rather than removing personalisation.
2. Your modular strategy should align with the realities of your market, rather than being one-size-fits-all.
3. Seek Expert Advice: Avoiding frequent errors demands knowledge and experience.

Do not leave your modular approach to chance. Contact Modular5 immediately to ensure your modularisation initiatives provide results without causing difficulties.