An analysis of transferring value-added activities within the context of modular design

Publication Type:

Journal Article


International Journal of Automotive Technology and Management, Volume 10, Number 4, p.378-399 (2010)



Automotive companies have used modularity as a strategy applied to new product development along with the outsourcing of production. To develop products using the modular strategy, activities inherent to production are redistributed based on a division of work among assemblers and their suppliers. In this sense, this study investigates the process of transferring value-added activities in new product development to tier suppliers in the context of modular strategy. The research relies on a multiple case study approach. Results shown that the companies studied were positioned in distinct levels of modular competencies ('embryonic', 'under development', and 'mature'), according to the empirical evidence. The relationships between the stage of maturity and major new product development practices were also identified. Copyright © 2010 Inderscience Enterprises Ltd.

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