Product modularisation and organisational coordination

Magnus Persson and Pär Åhlström

International Journal of Automotive Technology and Management, 2013, vol. 13, issue 1, 55-74

Abstract: Product modularisation can bring a lot of benefits, for example shorter lead-time since different modules can be developed in parallel. Existing literature proposes that by standardising interfaces, it is possible to avoid coordination problems in the development of different modules; coordination problems that might be caused by conflicts calling for management decisions. We test this assumption by investigating two modules in a new car development project. Despite having standardised and simple interfaces to other modules, managerial involvement in coordination was still needed. Hence, dividing a product into modules does not eliminate the need for a managerial hierarchy making important decisions.

Keywords: product modularisation; organisational coordination; decision making; new car development; new product development; NPD; automobile industry; managerial hierarchy; automotive management. (search for similar items in EconPapers)
Date: 2013
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