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What are various sub-types of modularisation process?

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

modularisation which are as follows:

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).

2. Product Architecture Modularisation: Product Architecture modularisation between

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).

3. Inter-firm systems modularisation: In inter-firm systems modularisation, there are typically

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

production and in the design of components (Takeishi and Fujimoto, 2003).


What are the benefits of Modularization for Tesla Motors?

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

marketing during required customisation. Modularisation helps in simplifying the manufacturing

system by the process itself (Stocker and Schmidt, 2016).

These are the following listed benefits of modularisation in the manufacturing of automobiles:

1. Modularisation has a potential to increase the variety of automotive products

2. Modularisation activates and update product development

3. It improves sales and supports servicing of the products

4. Modularisation helps in continuous improvement for streaming products

5. The assemblies outsource can make money for companys investment on a relatively larger


6. Modularisation helps in saving labour and investment costs (Neujahr, Thmmler and

Pretschner, 2016)

What can be adopted by Tesla Motors in terms of modularization?

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

lines on the market (Takeishi and Fujimoto, 2003).


Functionally independent subsystems, implemented in phases of production of similar or related

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


Reduction in product testing and design costs

Reduction in investment and R&D (research and development) costs

Savings mass production

Design and reliability of parts

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-

volume design configurations. It is this cost optimization and rationalization making

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).

What more techniques need to be explored in manufacturing?

There are two kinds of techniques that can be used in manufacturing process of automobiles. Some

of the techniques are listed below:

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

or pre-machining. In contrast to the subtractive DDM technology it helps in the production


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

agricultural machine can be used as a manufacturing process (Lampn, Cabanelas and

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

(Stocker and Schmidt, 2016).

How can modularization work in Tesla motors and how they are using this innovative technology

in enhancing their business?

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

market performance (Kito and Ogata, 2017).

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

to a disproportionate increase in their competitive advantage as a greater ability in their

customisation diversity and product customisation (Wedeniwski, 2016).


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).


Kito, T. and Ogata, T., 2017. Firms Strategies and Patterns of Their Interdependencies: An

Emergent Synthesis Perspective. Procedia CIRP, 62, pp.68-73.

Lampn, J.F., Cabanelas, P. and Gonzlez-Benito, J., 2017. The impact of modular platforms on

automobile manufacturing networks. Production Planning & Control, 28(4), pp.335-348.

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

on (pp. 499-502). IEEE.

Stocker, J. and Schmidt, M., 2016. Development of market-oriented architectural standards by

means of standardized vehicle layouts. DS 85-1: Proceedings of NordDesign 2016, Volume 1,

Trondheim, Norway, 10th-12th August 2016.

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,


Wedeniwski, S., 2016. The Mobility Revolution in the Automotive Industry. Springer Berlin.