THE PILLARS OF THE MODULAR PRODUCTION SYSTEM IN THE AUTOMOTIVE INDUSTRY AND THEIR INTEGRATIONS

Abstract

The global automotive industry has undergone several transformations throughout its history, such as the production line concept created by Ford and the Toyota Production System that introduced the concept of lean production through Just in Time. However, the constant search for cost reduction combined with the need for market renewal, generated a greater need for car assembly plants, to get closer to their main suppliers. Automakers saw a great competitive advantage by transforming those suppliers into their real business partners, making them deliver a complete module, thus emerging the concept of Modular System. Through a natural transition, expertise in the development of the main components of the automobile was directed to these suppliers, who became able to share the costs of developing new products in a much shorter time, through lasting partnerships with their customers; Here comes the so-called Simultaneous Engineering, with its horizontal and parallel structure capable of accelerating the process of developing new products. With this, as automakers are able to reduce their supplier base. However, adopting the Modular System with a management model is not a simple task and some pillars must be built so that this model is structured and capable of generating the expected benefits.