Modularization in Industrial Goods

A framework to master increasing complexity
Dirk Pfitzer | Andreas Baier | Stephan Ulbrich | Christoph Remmers | Tobias Michels
Okt. 2021 | White Paper | Englisch

Modularization in Industrial Goods

A framework to master increasing complexity 

Personalized shoes or an individual car configuration - individualization and modularization have become part of the daily lives. In contrast, many manufacturers of industrial goods are still in the early stages of introducing modular products and services. A massive expansion of the variety of parts and increasing complexity in production challenge conventional views and processes. Modularization can help to reconcile the high product variance and internal efficiency with the lowest possible complexity. 

In this White Paper, Porsche Consulting presents a framework that anchors modularization in the DNA of companies. Intelligently applied, modularization helps manufacturers of industrial goods to increase customer orientation while reducing costs due to complexity.


of industrial goods company leaders see governance, processes, and methods as the greatest challenge for implementing modularization.


points EBIT increase can be saved by modularization levers.

5 elements

are key to implement modularization in the industrial goods sector.

Management Summary
  • The implementation of modularization offers financial benefits and a competitive advantage through increased speed in order management
  • Assessing the company´s status quo is crucial to implement the framework elements and set the modularization targets
  • Technical implementation and the right setup of governance, processes, and methods pose major challenges in product modularization
  • A holistic framework with five interlocking elements provides a guidance for industrial goods manufacturers

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Dirk Pfitzer
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