Operations and logistics issues in modular assembly processes: cases from the automotive sector

Purpose - To identify operations and logistics issues which are critical for the operational performance in modular assembly processes. Design/methodology/approach - Based on case studies of Volvo Cars, Toyota, and Saab, the paper identifies operations and logistics issues that are critical for the operational performance of modular assembly processes. The issues are used for extending our understanding of the design and operation of modular assembly processes. Findings - The issues identified concern production planning, deviation handling, assembly flow balance, small unit disadvantages, and module flow control. They reveal that a modular assembly process design brings structural disadvantages related to the dispersion of activities and resource needs. The issues also demonstrate the need for extensive coordination across the interfaces of the decoupled parts of the process. Research limitations/implications - The findings will mainly be relevant for firms that design and produce complex products involving several technologies and that use company-specific modules as is the case in the automotive industry, for instance. Practical implications - Operations and logistics managers may use the findings in order to design and operate modular assembly processes, provide input to the design of modular products, analyze operations and logistics issues before the firm decides to go modular, or not. Originality/value - Complements existing research on modular assembly processes by outlining structural disadvantages and explaining the need for extensive coordination in such processes.