Fundamentals of Product Modularity

Modularity arises from the division of a product into independent components. This independence allows a firm to standardize components and to create product variety. Product modularity is frequently stated as a goal of good design practice, yet has not been as carefully studied as some other current design practices such as design-for-assembly. As firms strive to rationalize their product lines and to provide ever increasing variety at lower cost, modularity is becoming a focus of attention. The goal of this paper is to define modularity, to explore some of the benefits and costs of modularity, and to propose a set of research questions. The paper is the result of preliminary research and is more a starting point than a set of refined conclusions.