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In recent years, the modularisation concepts have been widely used in automobile industry. It is
important to know that the concepts of modularisation vary industry to industry (Lampn,
Cabanelas and Gonzlez-Benito, 2017). In automobile industry, there are three main types of
1. Production Modularisation process: In the modularisation process, the product is separated into
modules (components). Each component is manufactured in a separate assembly line. Then the
parts are mounted on the main pipe. This approach allows for better management of modules such
as the control of the highest quality. In a conventional approach, the parts (or modules) are
sequentially mounted in the main assembly line (Lampn, Cabanelas and Gonzlez-Benito, 2017).
components and their functions to create direct connections. Modular element is that the
relationship between itself and the function performed is unidirectional. This means that a
component can be completely modular, if it is, and only for a specific function. For a modular
component, it must have standardised and simplified interfaces (Kito and Ogata, 2017).
assembly of large modules which are manufactured by outsourcing. These components are
installed in the assembly lines of motor vehicle manufacturers. This process is performed in
Modularisation is the practice of manufacturing subsystems (using modules) to make, update and
advance products that are mainly offered along several production lines or a single product line
offering different configurations, significant cost savings, and expressively reducing delays
These are the following listed benefits of modularisation in the manufacturing of automobiles:
5. The assemblies outsource can make money for companys investment on a relatively larger
scale.
6. Modularisation helps in saving labour and investment costs (Neujahr, Thmmler and
Pretschner, 2016)
In a recent survey conducted by B-WI, about 72.31% of industry executives listed COGS (Cost of
Goods Sold) and other supply chain factors as major challenges to the industry that can keep the
business sustainable in today's competitive markets. This is one of the biggest advantages of
modularisation for Tesla Motors. Product costs optimise and improve time over several product
product lines will allow Tesla Motors to simplify product development and significantly improve
the cost of material during the production of the soil (Neujahr, Thmmler and Pretschner, 2016).
The adoption of modularisation will help in number of ways. Some of the advantages are listed
below:
Modular standardisation when implemented effectively early in the design process provides
tremendous value to PCO for manufacturers and serves to further simplify the most complex high-
modularisation the key for the manufacturer is that the challenges of a bad time manage to market
and gain a significant market share in their respective industries (Kito and Ogata, 2017).
There are two kinds of techniques that can be used in manufacturing process of automobiles. Some
DDM (Direct Digital Manufacturing) is a technique that uses the digital representation of
a module to create the final product, especially from the machine for direct application.
This allows the technician to bypass the bridge process, such as creating a mould or dying
of components, in layers with a laser, a set of original CAD data. These technologies are
starting to find a home in the community of manufacturers (Stocker and Schmidt, 2016).
Another application for the assembly of the tractor is by Iowa-based unlimited plastics for
Gonzlez-Benito, 2017). The process uses a technique called TEC (tool-less engineering
composite) that removes VOC (volatile organic compounds) for one of the components of
the hood and housing. The components are manufactured using a proprietary process that
forms the substrate fibre reinforced glass on the back of a class of thermoformed plastic
that forms a colour for a glossy surface. And the combined thermoplastic technology uses
the process resin soybean 34.53% manufacturing a product that respects the environment
How can modularization work in Tesla motors and how they are using this innovative technology
Modularisation is an optimization of strategic companies and the cost of all productive sectors,
reduce their waste, optimise time to market, enhance product costs and improve the initiative of
The investment in modularisation by Tesla Motors can see a significant Return on Investment
(ROI) and high sales of BCP that enable growth and deliver results almost immediately. For
industrial manufacturers, it was estimated that the modularisation time was reduced by an annual
growth of 45.34% - 68.35% in some parts of income by 11.53%, supplemented to the market due
For Tesla Motors, they are involved in automotive and consumer products, modularisation reduces
the number of required component production, while maximizing vehicle variations. In modular
subsystems implementation, companies can improve market value in a way that preserves quality
and reduces costs for development, production and maintenance (Neujahr, Thmmler and
Pretschner, 2016).
Although the advantages of modularisation were a blessing to the industry (MTS) to-goods-
watched, while the MTO (Made-To-Order) and ETO (Engineer-To-Order) saw modularisation as
a foreign idea. But in recent years, more and more ETO and MTO companies like Tesla motors
are trying to innovate ways to modularise their products and shorten the development time, the
launch time and the cost of manufacturing and optimizing the supply chain total cost product
(Wedeniwski, 2016).
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References
Kito, T. and Ogata, T., 2017. Firms Strategies and Patterns of Their Interdependencies: An
Lampn, J.F., Cabanelas, P. and Gonzlez-Benito, J., 2017. The impact of modular platforms on
Neujahr, S., Thmmler, M. and Pretschner, A., 2016, March. Modular platforms for E-mobility
charging stations. In Systems, Signals & Devices (SSD), 2016 13th International Multi-Conference
Takeishi, A. and Fujimoto, T., 2003. Modularization in the car industry: Interlinked multiple
hierarchies of product, production, and supplier systems. The business of systems integration,
pp.254-278.
Wedeniwski, S., 2016. The Mobility Revolution in the Automotive Industry. Springer Berlin.