Two Ways of Modularization Strategy in Japan
TWO WAYS OF MODULARIZATION STRATEGY IN JAPAN TOYOTA - HONDA VS. NISSAN - MAZDA
Masayoshi IKEDA Yoichiro NAKAGAWA
Today, as the end of the 20th century draws closer, European and US auto industries are several years ahead of Japanese counterpart in their effort for modularization. However, of all European and US automakers, the modularization effort made by the Big Three in the US is not so conspicuous, because of obstructions such as opposition from UAW. Meanwhile, German automakers are mainly leading the modularization effort made by European auto industry, of which threshold centered around 1996 and 97. When we study how the modularization process was generated and then evolved over the years, we can find that it occurred in the process of auto industry’s effort in pursuing lean production. Today, modularization is highly evaluated as an innovative cost reduction method, which transcends production system improvement in a traditional sense. Nevertheless, as we are going to discuss in this paper, there seems to be still some need for consideration as to the validity of such a high evaluation, which is given to modularization as a method of achieving cost reduction.
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The aim of this paper is, in the end, to examine the effort made by Japanese automakers with respect to modularization. The effort is now becoming more concrete, and it begins to predict its future scope as well. But, before clarifying the characteristics of Japanese-style modularization, we consider it necessary to elucidate the characteristics of modularization by European auto industry, especially German auto industry, as well as the background with respect to how it was formed in advance to Japanese counterpart. So, this topic is discussed firstly in this paper. It was conventionally considered that the Japanese auto industry had more advanced supplier relation system than that of European auto industry. But, Japanese auto industry fell far behind its European counterpart in the case of
Masayoshi IKEDA Yoichiro NAKAGAWA
Today, as the end of the 20th century draws closer, European and US auto industries are several years ahead of Japanese counterpart in their effort for modularization. However, of all European and US automakers, the modularization effort made by the Big Three in the US is not so conspicuous, because of obstructions such as opposition from UAW. Meanwhile, German automakers are mainly leading the modularization effort made by European auto industry, of which threshold centered around 1996 and 97. When we study how the modularization process was generated and then evolved over the years, we can find that it occurred in the process of auto industry’s effort in pursuing lean production. Today, modularization is highly evaluated as an innovative cost reduction method, which transcends production system improvement in a traditional sense. Nevertheless, as we are going to discuss in this paper, there seems to be still some need for consideration as to the validity of such a high evaluation, which is given to modularization as a method of achieving cost reduction.
Ø
The aim of this paper is, in the end, to examine the effort made by Japanese automakers with respect to modularization. The effort is now becoming more concrete, and it begins to predict its future scope as well. But, before clarifying the characteristics of Japanese-style modularization, we consider it necessary to elucidate the characteristics of modularization by European auto industry, especially German auto industry, as well as the background with respect to how it was formed in advance to Japanese counterpart. So, this topic is discussed firstly in this paper. It was conventionally considered that the Japanese auto industry had more advanced supplier relation system than that of European auto industry. But, Japanese auto industry fell far behind its European counterpart in the case of