Modular product architecture implementation and decisions on production network structure and strategic plant roles

Any novelty in product architecture design will condition key aspects of production systems and production networks and will involve facing different challenges when implemented. Through a longitudinal case study (2013-2020) in the European production networks of three automobile manufacturers, this paper analyses the implementation process for their new modular platforms. The results show that production network performance is not derived from product design per se. It is mainly conditioned by the production network structure and strategic roles assigned to plants in the implementation process. Networks resulting from the implementation of the new modular architecture are characterized by their geographical dispersion and high number of alternative plants for production, which allow greater operational flexibility to transfer and share manufacturing resources internationally. The implementation of automobile modular platforms has been characterized by a shareable production system, the same value-added activities distribution in the production network and the assignment of a strategic role to some plants as production hubs for specific models.

Automated summary

Production network performance is mainly determined by network structure and the strategic roles assigned to plants during the implementation process, rather than just product design. The implementation of new modular architecture results in networks with geographical dispersion and a high number of alternative plants, allowing for greater operational flexibility.