Value Creation Mechanisms of Modularisation in the Engineering Asset Life Cycle

Many companies offering physical assets have to adapt to different market requirements to maintain profitability. Product modularisation is a common solution for this challenge used by suppliers (manufacturers) of engineering assets. Modularisation enables greater product variety and increases commonality between product variants. Modularisation includes defining a set of modules, interfaces, modular architecture and configuration rules and constraints based on case specific partitioning logic. This paper reviews the main value creation mechanisms (VCMs) of product modularisation in the manufacturing industry, and studies what kind of VCMs are related to the main life cycle stages of engineering assets and how companies in case studies have incorporated VCMs. Key VCMs were identified based on the engineering asset life cycle, but other VCMs were considered to be important from a supplier’s perspective. Suppliers should consider the whole life cycle when designing engineering assets and clarify which VCMs are the most important guiding principles for their product and make trade-offs when required.