Impact of Modular Design and Interchangeable Systems on Business Profit

Abstract

In resource constraint environment, business operates by “doing it right the first time†for timely production and effective delivery. Modular design, Interchangeable systems and “Leagile†manufacturing are essential tools for coping with variable demands. We discuss manufacturing system design & its importance for firm’s competitiveness by operationalizing competitiveness in terms of profit share and understanding mediation of interchangeability between modular design and market share. Our findings suggest that modular design provides an enterprise to explore new customer base, focus on niche market and start on a new learning curve.