Accelerating the Path to Modularity

Although not a new automotive topic, modularization has emerged as the “must do” strategy to address increasing product complexity and globalization.

Modular strategies can provide significant advantages, including mass customization, faster technological adoption of new products and faster speed in new product development, as well as cost reductions.

IHS Consulting Managing Director Michael Robinet has said the Volkswagen MQB platform “could be the single most important automotive initiative of the past 25 years.” Others believe modularity to be as revolutionary as Henry Ford’s production line or Toyota’s just-in-time parts-delivery system.

However, as with most major changes, there are barriers to easy transition and adoption. And, this is a strategy that only will become more difficult to implement as vehicles continue to increase in complexity, requiring the ability to manage dependencies across multiple programs and platforms.

Breaking each automotive structure down into its smallest common component is no easy task. And, it’s not just about geometry; it’s also about form, fit, function, performance and cost. For example, a seat-frame component requires consideration of safety features such as crashworthiness, occupant protection and human interface, as well as cosmetic features – leather seats vs. cloth or seat warmers.

There are dozens of attributes that have to be mapped across each component. These attributes have to be compiled from across various domains within the enterprise, which is time-consuming and complex.

It should be no surprise companies with a wider vehicle lineup encounter bigger hurdles. Additionally, well-established companies with multiple legacy systems face larger issues. Years of incremental software investments have created patchworks of inflexible legacy systems and processes that can keep companies from quickly embracing change and achieving new efficiencies.

In a typical scenario, there could be as many as 1,100 data sources involved in producing a new vehicle and most of these are found within “siloed” management structures incapable of seamlessly communicating with each other. Translations between software systems are constantly applied, but these take time and affect data integrity.

To speed the achievement a modular strategy requires, an IT backbone that can integrate all data objects that define the various component attributes into a single database is required. One source of the truth simplifies the complexity of a modular approach and provides the key enablers needed to manage the process for successful implementation.

In a perfect world, we’d be able to achieve this by starting with a brand-new technical foundation that facilitates this totally integrated strategy. But, as much as we know how valuable a modular strategy can be – Morgan Stanley estimates the MQB program will result in annual gross savings of $19 billion with margins approaching 10% by 2019 for Volkswagen – the reality of business schedules and production requirements make this more than difficult.

Think of it this way. Imagine a new technology is introduced to the market that would transform your home and open up your personal life to incredible new capabilities and experiences. However, to achieve this would require a total rewiring of your home, shutting you down from your electrical assets and communications for weeks.

You discover there are workarounds you can implement. They provide the ability to stay connected while you adjust your infrastructure, but they also require time and investment. And, in the end, you won’t ever have access to the full new technology experience and its benefits.

That sums up today’s reality in transitioning to modularity. Unless you’re a start-up, most of us feel stuck living with what we’ve got. Few corporations have the ability to alter the entire infrastructure overnight.

But there are ways to start implementing the strategy in a methodical manner that doesn’t have to be totally disruptive, while allowing consistent efficiency gains.

Step one, analyze all of your data sources and look for the low-hanging fruit. For example, close examination of your legacy databases may reveal that many of these can be replaced by just one of the existing systems.

Secondly, identify the areas that are causing the most pain and then pinpoint those that are the least complex to fix whether through new investment or reconfiguration. By doing so, you can start to establish a realistic roadmap that will lead you to a better integrated IT infrastructure that is crucial to an effective modularity strategy.

Modularity is not something that will emerge overnight for automakers, especially those dependent upon long legacy software systems. It will be an evolution requiring a significant number of years, not a revolution.

However, with the right plan and partners, it can be an evolution that provides quick ROI and continual efficiency improvements while building the underlying infrastructure required for a sustainable and seamless modular strategy.

Mike Lalande is director-Dassault Systemes Americas Transportation & Mobility. He has more than 25 years of leadership experience in product development, including various positions at General Motors with responsibility for its PLM strategy.