Implementing a platform strategy for a systems business via standardization

Abstract

PurposeThe benefits of a platform strategy in volume product businesses are well established. Such a strategy can also pay dividends in a low‐volume systems or projects business. The benefits include increased engineering efficiency, higher solution reliability and reduced direct costs. The purpose of this paper is to describe the mechanism for the implementation of such a platform strategy via a design standardization initiative and discuss the technical challenges involved. The paper describes the case of the automotive powertrain assembly line business.Design/methodology/approachFor the past three years, the authors were an integral part of the engineering teams at four systems businesses, automotive suppliers with a global footprint, driving the process of standardization and engineering platform development. The concepts presented in the paper were developed and validated during the course of this effort.FindingsImplementation of an engineering platform can succeed via a design and work process standardization initiative embedded in a strong business context. The problems involved – technical, organizational, and cultural – must be dealt with simultaneously and comprehensively.Practical implicationsThe practical steps that need to be taken and the comprehensive approach required to implement platform concepts in a systems/projects business are highlighted.Originality/valueThere is considerable literature on the planning and design of product platforms. However, there is less discussion of how to implement these platforms in practice considering the organizational constraints and legacy products. Further, there is even less published literature on platform development for complex systems treated as products.