Customization Based on a Modular System

Modularization is one of the main success factors in machine manufacturing. At WEISS, modular design is also a key element of the corporate strategy, allowing the company to react flexibly to the growing customer demand for customized products.

 

Since the 1980s, modularization has been considered an efficient strategy in machine and plant manufacturing. Consistent implementation results in a flexible system with exchangeable functional modules. It enables a range of versions of a product to be realized affordably with a short time to market. After all, unlike classic product development, innovations no longer require the reworking of entire machines. The adjustment takes place on the module level.

Although many companies find it difficult to completely tap the potential of modularization or are reluctant to face the risks of the transformation, modularization continues to be as important as ever. As a consequence of the increase in digital networking, companies must launch new versions faster and faster in order to satisfy customer demand for customization. Companies with an efficient modularization strategy have a clear advantage here – however, the sustainable installation of a modular product strategy also poses stringent requirements.

The function, not the technology, is the focus
Unlike earlier approaches, today's modularization strategies focus on integrated implementation. However, the goal basically remains the same: the development of a modular system that unites various fields, such as mechanics, electrical engineering, fluidics and software, and, in addition to standardized interfaces, also contains the configuration rules for customized adaptation to customer demands.

A key success factor in terms of setting up and handling this type of modular system is to avoid thinking in categories like technology or assemblies. Instead, the focus is on a function-related perspective on which the company's entire value creation chain is based.

The reason for this is that the identity of a module is always its function; the technology is only the enabler of the corresponding function. Accordingly, in modularization, an integral system is broken up into individual functional modules that are decoupled from each other as completely as possible. This grouping of functions into modules reduces mutual dependency, enabling the autonomous development or further development of individual modules. Adaptations, optimizations and cost reductions can also be carried out on the module level.

Developing in parallel, not in sequence
The magnitude of the competitive advantages involved can be demonstrated by taking a short look at traditional engineering, in which production development is carried out in sequential, individual projects. Departments like mechanics, electrical engineering or PLC programming often work independently of each other, which makes the product portfolio grow over time. Even if there are good reasons for working like this in individual cases, the approach inevitably leads to an increase in technological complexity with every new development. As a consequence, development departments have less and less time for innovation. Instead, the majority of the capacity and costs are tied to product maintenance, the complexity of which inexorably increases with each new development project.

Modular product development offers a way out of this vicious circle, as more versions can be manufactured with fewer, reusable components. To do this, functional modules are defined based on the respective customer needs and development plans are made across projects and departments. The subsequent engineering takes place in parallel, not sequentially. The consequences: Designers can concentrate more on innovation and implement development projects more quickly. At the same time, this avoids over-engineering and redundancy.

High cost savings and quality improvements possible
Once the organizational course has been properly set, the advantages of modularization can already be seen in the planning phase: the high reusability of standardized modules and consistent data handling across all project phases shorten the time to market. Beyond that, modularization and modular product development offer numerous further advantages. They include:

• Combined benefits of standardization and customization
• Reduced technical complexity
• Affordable manufacturing with structurally identical series
• Low development costs
• Higher innovation capability and faster product cycles
• Simple assembly, repair and product adjustments
• Greater agility with fast modular system modifiability

The advantages can be documented based on specific statistics. For example, case studies by a consulting firm show that the modularization of products and services yielded 28 percent savings on average. When the production system was modularized, the amount invested in systems and tools fell by more than 32 percent, while top performance increases in quality and time to market achieved an increase of 43 percent.

The challenge: Mastering the complexity of the modular system
As impressive as these statistics are, the road to realizing them is rocky. "If I consistently decide to implement modularization, virtually overnight, I will have a level of complexity in the organization and the tool set used that is ten times higher than it was before," said Fabian Hübner, who is responsible for product and portfolio management at WEISS.

On the one hand, this is because engineers must fully think through and define the complexity of the modular system at an early phase for new development projects. Companies must also approve and install configurators and be willing to deal with products with many versions. "Many give up because they cannot deal with the complexity," said Hübner. "But once you succeed, you have created a solid basis."

Modularization "from the bottom up"
At WEISS, this basis developed almost on its own, since the company developed through a wide range of market requirements and customer applications. "You could say that modularization is part of our DNA and has grown out of the company history 'from the bottom up'," Hübner added. Nevertheless, several years ago, WEISS decided to consciously drive modularization and an orientation toward digitalized solutions in order to respond faster and more precisely to customers' increasing desire for customization. Five elements are key:

1.  Short concept phases for new products and variants: For this, Application Engineering can select between fixed-station, freely programmable or directly driven rotary indexing tables in the modular system.

2.  High reliability in terms of costs and deadlines: The modular system delivers the necessary cost and project planning transparency.

3.  Standardization and reusability: Parts like cylinder cams and roll pins for the dial plate and complete components like rotary indexing tables, pick-and-place modules or linear transfer systems combine the advantages of high reusability with standardization. This way, customers of WEISS benefit from high quality with short delivery times thanks to finished processes and work plans, as well as a defined production sequence.

4.  High manufacturing efficiency

5.  Consistently high quality across the sum of all components

Growing with special-purpose solutions and extending the modular system
Looking toward the future at WEISS, Hübner sees modularization as a firmly established part of product development that will also encompass mechatronics and software solutions. WEISS uses the efficiency gains achieved with the modular system specifically for market entry into new industrial segments with special solutions that are not yet covered by the standard modular system. "In order to achieve sustainably above-average growth, we are deliberately leaving the path of standardization here and will even increase our share of special solutions for this purpose," explains Fabian Hübner. WEISS finances the associated cost increases through standard solutions. "However, this will only be necessary in the medium term, because we are expanding our standard modular system with the special solutions that are being created," says the portfolio manager.

The development of special solutions and customer-specific solutions is already an important element and driver of a growth strategy that at first glance seems to contradict the idea of modularization, because the modular system initially plays only a minor role. Ultimately, however, the special solutions developed develop into optimizations for the standard portfolio.

The organizational restructuring at WEISS required for handling the complexity of the modular system is still in progress, but the goal is in sight. The modularization strategy has been fully implemented in the mechanics field, while software modularization has just begun. Nevertheless, WEISS already benefits from the gains in efficiency it has achieved, and which will significantly increase in the near future. "At that point, we will be able to respond to market and customer requirements very quickly, with a high turnaround." Hübner has no doubt whatsoever: "At WEISS, modularization and all the measures required to make it successful have not been the subject of strategic discussions for a long time. We are just looking ahead now."