Introducing a platform strategy in product development
Introduction
The product platform concept has become a key concept in the innovation process. This approach can have a radical impact on the way in which both product development and the entire innovative process, including relationships with suppliers and customers, is conceived [1].
One broad definition of a platform is a relatively large set of a product components that are physically connected as a stable sub-assembly and are common to different final models [2]. By using a platform approach a company can develop a set of differentiated products [3].
In general terms, the potential benefits of the platform approach are: reduced development and manufacturing costs; reduced development time; reduced systemic complexity; better learning across projects; improved ability to up-date products.
Building a product platform may have many implications as the product has both to be responsive to market needs and to demonstrate distinctiveness while, at the same time, it must be developed and produced at low cost. As a consequence adopting such a strategy requires a redefinition in the way a product is conceived. It also affects the development process and also has an important impact on firms' organisation structure.
A platform strategy also offers advantages for the globalisation process of automobile firms [4]. A platform permits:
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greater flexibility between plants (the possibility of transferring production from one plant to another due to standardisation),
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cost reduction achieved through using resources on a world scale,
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increased use of plants (higher productivity due to the reduction in the number of differences),
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reduction of the number of platforms as a result of their localisation on a world-wide basis.
The use of a platform approach has become a competitive priority in the automobile industry too and many firms are adopting the concept with different interpretations and differing degrees of implementation. In particular Japanese companies have, to a varying extent, introduced a platform strategy into product development as a result of the efforts towards simplification of design [5]. In order to understand how and why a platform strategy is adopted the various functions of platforms should be examined.
Section snippets
The platform concept
A platform can be seen from a strategic, an organisational, and a technical perspective. The introduction of a platform strategy affects product development performances, in particular, cost and lead time reduction, the international operations and the R&D management strategies of companies. A platform strategy is strongly linked to the way in which platform development is organised in relation to the other parts of the whole product. Platform development is also a technical issue because it
Research questions
The platform concept is gaining momentum also in the automobile industry and companies are being forced to take a number of decisions about it. This work aims to define a basic framework for platform decision making and assess, through empirical study, how the problems are faced by companies. The main research questions behind this work concern the following three main aspects: platform as physical product structure; platform strategy; platform organization.
Platforms in automobiles
In the case of automobiles a basic definition of a platform, from a technical point of view, includes: underbody and suspensions (with axles). Underbody is made of front floor, underfloor, engine compartment and frame (reinforcement of underbody).
Starting from this basic model of conceiving a platform three different definitions may be distinguished in the case of Japanese companies. A narrow, a broad and a flexible definition.
Performance drivers for platform development
The platform strategy was developed as a consequence of the quest for design simplification in product development in the early '90 but it was only about 1994 that almost all companies were faced with the need to implement a platform strategy. However Japanese companies are currently in different stages of the development of their platform strategy.
The main reasons for platform development are:
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cost reduction,
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productivity of product development,
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development lead time reduction.
Every company has
Product architecture and platforms
From a technical point of view, with important consequences on the new product development process and overall performance, the relationships between a platform strategy and modularization and product architecture must be observed [11].
Platform strategy
A platform strategy affects a number of issues, in particular:
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the relationship between platforms and models and between platforms themselves,
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the relationship with the supplier base,
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the relationship with subsidiaries in other countries and with other companies.
Platform organisation
In organisational terms a platform strategy has an impact on the product development process and on the organisation structure adopted. As regards the development process, the main feature is the separation of underbody/upperbody development. Indeed, up to 90% of the underbody may be developed independent of the upperbody. This makes a separation of platform development from model development possible. With the separation of platform development and model development this latter can be
Conclusions and further research
The adoption of a platform strategy is still an ongoing process. Every company recognises the platform strategy as a key issue in their future domestic and international strategy.
Despite this there are considerable differences between firms as regards the definition of what a platform really is and, consequently, there are also differences between development processes and organisation structures. The strong competitive potential of a platform strategy in terms of improved performances has been
Acknowledgements
I would like to thank Prof. Takahiro Fujimoto of Tokyo University for facilitating contacts with Japanese auto companies and for sharing some of the thoughts in this paper. I would also like to thank the managers of Toyota, Nissan, Honda, Mitsubishi and Mazda who have participated in the research at various stages. Any errors or misunderstandings are the responsibility of the author.
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