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A Solid Track Record - A Down-To-Earth Approach Modular Management has helped a diverse range of companies from white good manufacturers, through construction and transportation to telecommunications. To find out more about the benefits different companies have gained from modularization, take a look at the following case stories: Husqvarna String Trimmers Reduces cost of goods sold and time to market to achieve lower price points and maintain market share Read more Company Description The Husqvarna Group is the world's largest producer of outdoor power products including chainsaws, trimmers, lawnmowers and garden tractors. The Group is also the European leader in consumer watering products and one of the world leaders in cutting equipment and diamond tools for the construction and stone industries. The product offering includes products for both consumers and professional users. The Group's products are sold via dealers and retailers in more than 100 countries. Business Situation Many acquired brands with separate product development and manufacturing facilities Expensive range of components sourced regionally and in high cost countries Wide variation of product volume due to regional weather conditions and seasonal demand Modularity Results Developed profitable entry-level price point product Freed-up resources to develop more new products Entered new markets with unique product variants Drastically reduced amount of inbound inventory Maintained low Service Call Rate with less effort Measurable Improvements 25% reduction in manufacturing cost 50% reduction in time to develop new products 50% fewer resources to develop new products Significant increase in EBIT margin Download the full case story (requires free registration >) Wärtsilä Medium Speed Engines Increases Commonality of Components and Offers the World’s Most Efficient of Family of Engines Read more Company Description Wärtsilä is a global leader of power solutions and services to the marine and energy generation markets with net sales of around 5 billion EUR in 2014. Wärtsilä is a publicly traded company with 17 700 employees who operate in nearly 70 countries, with headquarters in Helsinki, Finland. Caterpillar and MAN Diesel are important medium speed engine competitors within the core marine market segments, while Hyundai Heavy Industries competes within the smaller output electricity generating segment. Business Situation Large family of engines that spans broad range of marine and power generation applications An entire new family was needed to raise the overall fuel efficiency to the new competitive level Concluded that bottom-up component commonality could not support a broad product family Modularity Results Developed a whole product family simultaneously Drastically reduced overall development time Prototype testing of modules instead of full engines Production readiness achieved drastically sooner Greater number of parallel production activities Measurable Improvements 45% reduction in development cost 44% reduction in product maintenance cost 43% fewer unique components 40% fewer purchased articles 50% reduction in assembly time Download the full case story (requires free registration >) Bosch TT Heat Pumps Generates Efficiency and Profitability within a Broad Product Portfolio Read more Company Description Bosch Thermotechnology (TT) is a division of the Bosch Group. Together with its subsidiaries, it is a leading supplier of building heating products and hot water solutions with annual revenue of 100M Euros. Bosch TT has strong international and regional brands, and it manufactures a diversified product range in European, American and Asian countries. Bosch TT Heat Pumps Business Situation Multiple product technologies and local brands were delivered from a mix of insourced and outsourced product families. A shift in the market to the less profitable, outsourced product family was reducing profitability. Bosch TT developed a new generation of an outsourced product family with a Modular Product Architecture using many fewer components and unique part numbers. Modularity Results New, performance leading product family introduced 60% fewer part numbers to deliver the family Strategically sourcing modules instead of products Extreme late-point differentiation at installation Modularity of all product lines now 19% - goal is 100% Measurable Improvements Double digit market share growth 44% lower planned product cost 75% fewer assembly operators 90% reduction in throughput time 55% reduction in production floor space Download the full case story (requires free registration >) Whirlpool Microwave Ovens Saves Factory in High-cost-country by Transforming Their Business Approach Read more Company Description Whirlpool Corporation is the world’s leading manufacturer and marketer of major home appliances, with annual sales of more than 19 billion USD, more than 68 000 employees and 65 manufacturing and technology research centers around the world. Competitors include Sweden-based Electrolux, US-based GE Consumer & Industrial and LG Electronics based in South Korea. Whirlpool Microwave Ovens Business Situation Evolved into a high volume, low variation, low price model yielding low profitability Exhausted all cost cutting channels besides moving operations to a low-cost-country Transformed into a mass customization model with high variation, high value, lower volume and higher profitability. Modularity Results Enabled new approach to the market 200 active product variants Rapid refreshing of models Small production runs per individual order Maintained control of average unit costs Measurable Improvements One year saved in initial development time Product architecture has lasted 10 years and counting Achieved goals for reduction of total cost Significant reduction in inventory levels Leaner overhead structure Download the full case story (requires free registration >) Dynapac Construction Equipment Boosts Market Share in Emerging Regions with Global Product Platforms. Read more Company Description Part of the Atlas Copco Corporation and one of the world’s foremost manufacturers of compaction and paving equipment for road construction. These complex vehicle systems that are assembled from components from multiple suppliers. Competitors include Bomag (Germany), Ingersoll Rand (Ireland) and Caterpillar (USA). Dynapac Construction Equipment Business Situation Single most significant growth opportunity was in developing countries like China and India Equipment needed to be adapted to local construction techniques and practices Struggling to meet price points via independent local divisions and ownership of products Modularity Results Established central product ownership Increased standard features and options Reduced time to market for local variants Company-wide implementation of technology Measurable Improvements 6% reduction in direct material cost 30% reduction in total part numbers 15% fewer parts per product 30% reduction in assembly time Download the full case story (requires free registration >) Trane Commercial Air Handlers Regains Product Leadership while Reducing Product costs. Read more Company Description Trane has 8 billion USD annual revenue within the commercial, industrial and residential heating, ventilation and cooling (HVAC) markets. They supply HVAC systems, dehumidifying, air cleaning and building control products along with parts, service and financing. Trane Commercial Systems Business Situation Long-term product leader no longer commanded a price premium and was losing market share Current product did not meet market requirements for energy efficiency and overall cost Operational improvements through Lean and process automation alone were not sufficient Modularity Results Expanded range of product offering Refocused on true customer value Combined two product families Reinvigorated Lean activities Increased impact of automation Measurable Improvements 58% reduction of part numbers 15% reduction in overall product cost 10% reduction in the cost of operations 7% reduction in direct material costs 50% reduction in development time Download the full case story (requires free registration >) Peab Building Construction Establishes New Standard in the Pre-fab Market with Broad Product Assortment Read more Company Description Peab is one of the largest contractors in Europe’s Nordic region for building and home construction. With annual revenue over 7 billion USD, the company provides construction services, civil engineering services, industrial products and property development. Peab Construction Company Business Situation Traditional construction company following design-build process with declining productivity Strong market demand for multiple-occupancy new residential buildings at affordable prices Previous attempts at prefabricated buildings fell short with few features and levels of customization Modularity Results Designing assortment instead of individual buildings Including enough options and variety for the market More accurate and detailed plans for assembly Implementing industrial process improvements Using industry workers instead of tradespeople Measurable Improvements 16% overall cost reduction 50% reduction in construction time 50% reduction in onsite indirect costs 50% reduction in building design costs 75% reduction in rework Download the full case story (requires free registration >) MTS Test Systems Finds Capacity Among Current Resources to Address an Evolving Market. Read more Company Description Since 1966, MTS Systems Corporation has produced scientific and technical instruments that support the development of new technologies and products within the automotive, aerospace, construction and biomedical industries. It is a publicly traded company with annual revenue around 450 million USD and 2000 employees. MTS Systems Corporation Business Situation Added necessary capacity and efficiency Avoided increase of resources levels Single product family across many applications Improved sales and marketing efficiency Implemented first manufacturing line Modularity Results Added necessary capacity and efficiency Avoided increase of resources levels Single product family across many applications Improved sales and marketing efficiency Implemented first manufacturing line Measurable Improvements 90% reduction in total number of parts 35% reduction in customer project costs 70% reduction in lead time 75% reduction of work-in-progress Download the full case story (requires free registration >) Guldmann People Lifting Systems Establishes a Product Foundation for 20 Years of Sustainable Growth. Read more Company Description Guldmann was founded in 1980 with the primary aim of improving the working environment of the social services sector where people need to be moved and handled. It is privately owned and currently employs about 300 people with annual revenue over $70M USD. Guldmann People Lifting Systems Business Situation Improving the efficiency of healthcare professionals with engineered system solutions Market leader for ceiling and mobile lifts taking action to ensure long-term viability of the company Large growth opportunity connected with the ability to offer an expanded product assortment Modularity Results Leveraging a 20-year flexible product platform Developing new product variants each year Applying a new product development process Following clear customer value directives Manufacturing with module production cells Measurable Improvements Twofold increase in annual revenue Factor of ten reduction in part numbers per product Corresponding reduction in inventory levels Large decrease in overall product lead time Significant cost reduction with volume sourcing Download the full case story (requires free registration >) Log in - Please Log in to Access Even More Content Email Password Remember Me Register Lost your password? 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