Lego Logic: Modularity and Customization

You’d be hard pressed to find a person among your circle of friends who has never laid hands on, or at least seen, a Lego brick. Countless people have constructed objects ranging from rudimentary castles to amazing creations such as a 1:40 scale model of an Essex class aircraft carrier. The number of custom “products” that have been created from these building blocks is incalculable. Despite widespread personal familiarity with the concept of modularity, however, few industrial companies employ the concept to its full potential. Employed effectively, modularity can be a powerful advantage for both manufacturers and their customers by providing customized products at competitive prices.

Construction Modules

One of the most interesting applications of modularity is in the construction of buildings, facilities, and infrastructure. The use of prefabricated modules has steadily increased in recent years, which isn’t surprising considering the many advantages of the concept. One key benefit is that prefabrication doesn’t need to wait for site preparation–the two processes can proceed in parallel. What’s more, by transferring fabrication processes from a jobsite activity to a factory, it’s possible to justify investment in flexible automation, leading to faster fabrication and assembly, with higher quality and lower total cost. The icing on the cake is the ability to create objects in a factory that can’t be fabricated practically on the jobsite. The net result can be a major improvement in construction productivity, with fewer surprises and therefore less need for project contingencies.

It’s helpful to look at an example of a company that gets the process right. ConXtech is a California-based innovator of a steel framing system with prefabricated connections that dramatically reduces the time required for structural steel erection. The company has also extended its flexible manufacturing capabilities to provide other building components such as stair modules, and is able to prefabricate penetrations in steel framing for site installation of mechanical, electrical, and plumbing (MEP) components such as piping and cabling. The result is a significant reduction in the time and labor required for multiple trades to complete their work, and an overall acceleration of project timelines. Beyond structural steel, the same principles are being applied by other companies for building products ranging from air handling systems to electrical panels and even branch circuits.

Linked Automation

From the perspective of a manufacturer providing these modules, effective modularity involves far more than using some standard parts within the bills of material for catalog SKUs. On the contrary, using modularity as a competitive advantage requires rethinking core business processes and applying modern tools. None of this would be possible without digital tools to automate the design and fabrication of modules.

Extending our construction example, it’s important to link processes for a product’s specification, design, production, installation, and service. This is true for any building product, but even more so when the product is customized. Consider an air handling system as an example. Airflow through the system needs to be balanced with the ventilation requirements for the target facility, and duct routing must consider both system performance and geometry constraints. This is information that exists in the BIM model for the facility. Air handling unit (AHU) performance and power requirements are a function of the system in which it is installed, and the facility design needs to consider the space and weight of system components. Procedures to set up, test, and calibrate the system must be clearly documented, and required information for product warranty, preventative maintenance, troubleshooting and repair must be available.

For customized products, and even more so for customized systems, applying digital tools to automate these processes is essential. Companies can’t merely adopt islands of automation. Smart automation of the business process is the key to winning with a differentiated offering. Specifications and constraints feed design automation and configuration tools, which in turn feed into pricing and quoting systems. Once an order is received, unique configurations are fed to production logistics, fabrication, and assembly systems. Products are delivered not only physically, but also with properly structured digital information and documentation to support installation, operations, and maintenance. This kind of automation doesn’t need to be a monolithic system, nor does it need to be implemented all at once. But it does require examining fundamental business processes, and developing a strategy for implementation.

Building the Blocks

An important piece of the puzzle for successful modularity is defining the building blocks, their interfaces, and related configuration rules. It’s helpful to start with the end in mind, and then work backwards by answering a series of questions. What kind of customization is needed to meet current and expected customer demand? How can standardized components be reconfigured to produce these configurations (and does this require rethinking the standards)? What elements might be unique for each application, and how can the design and production process for those elements be automated? Of course, there are many questions to be answered, challenged, and asked again before this process can converge on an optimal answer.

Once a modular strategy is in place, the next step is to identify interfaces and establish technical and business rules. Components must be sized appropriately for the needs of each configuration. Heat dissipation and its effect on reliability must be considered. If a product has an onboard control and diagnostics module, it must be programmed with appropriate calibration data. Everything that is produced and delivered for a sale should be driven by configuration rules, whether a physical assembly, onboard control/diagnostics logic, installation documentation, or digital information for operations and maintenance. A similar approach must be applied for business processes. Access to configuration systems, costing processes, determining lead times and delivery schedules, and other business processes are also critical building blocks of a modular strategy.

Technology Foundations

Product Lifecycle Management (PLM) can deliver many of the design and manufacturing capabilities that are needed to provide the digital foundation for a business strategy driven by modular customization. In particular, PLM solutions support change management, design automation, digital manufacturing, and managing bills of information (bills of material, plus associated non-material information). Complementary solutions include Configure Price Quote (CPQ), Enterprise Resource Management (ERP), and Service Lifecycle Management (SLM). In some circles, the combination of these capabilities is known as Configuration Lifecycle Management (CLM).

Integrating applications from multiple providers can be issue, and of course security requirements are an important consideration. Any company considering adopting modularity as a core strategy needs to consider not only the initial integration, but also long term maintenance questions. While cloud services with clearly defined APIs can greatly speed and simplify the integration process, some companies may not be willing to expose some or all of their core business processes to public clouds. For these customers, traditional systems and hybrid solutions may be appropriate. No matter what underlying technology is used, a company must assess the capabilities and long term costs of different providers to identify the best foundations for the future.

Before jumping into any technology strategy though, a company needs first and foremost to establish a business strategy. Finding the right advisor who understands both business and technology can be a smart way of starting this process.

CIMdata is the leading independent global strategic management consulting and research authority focused exclusively on the PLM market. If you are interested in understanding how modularity and configuration can benefit your business, please contact me.