Manufacturers are always searching for ways to cut costs and speed development times of new products. One way they have found to do that is by deploying platform design, which is also referred to as platform sharing. Platform sharing is a product development method where different products share the same underlying components. By sharing components and production processes across product lines, companies can develop differentiated products more efficiently.
As a result, platform design enables companies to improve the efficiency of their product development and reduce procurement costs by basing their products on a smaller number of platforms. Platform sharing also enables manufacturers to achieve greater flexibility between production facilities. Due to standardization of parts, manufacturers can easily and quickly transfer production from one plant to another. Platform design can also lead to higher utilization of plants due to the reduction in the number of differences between products.
Other benefits include reduced costs through shared resources on a global scale and easier inventory management due to a smaller number of parts. Quality can also be increased since parts are designed with less variation, reducing defect rates. Innovation can also be increased. Development costs saved through platform sharing can be redirected to improving the efficiency of remaining components, which leads to more specialized and innovative products.
Platform design also enables manufacturers to serve the needs of different market segments (mass-market, luxury, etc.) with the same basic platform by varying exterior design, detail and options. In the case of automotive design, manufacturers can tweak styling options; trim packages, luxury features, etc., to appeal to different types of consumers.
Platform sharing has been particularly successful is the automotive industry, though manufacturers in other industries are pooling developmental resources as well. For example, computer makers such as IBM, Sony, and Toshiba joined forces to develop a high-performance microprocessor, and flat-screen TV manufacturers Hitachi, Toshiba, and Panasonic jointly developed LCD panels.
Platform Sharing Revs up Automotive Industry
Designing and producing a new car or truck model is a complex, time-consuming, billion-dollar undertaking. No surprise that automotive platform sharing was first deployed by the automotive industry back in 1960 by General Motors, which benefitted from increased economies of scale and saved millions of dollars in development costs. By the 1980s, platform sharing had become common practice, and the consolidation of the automotive industry since means shared platforms are now the norm, even between fierce competitors.
As automobile platform consists of the core framework of cars and can include the chassis, engines, transmissions, suspensions, brakes, steering and electronics. These components, which are mostly hidden from the eyes of consumers, can be packaged in dramatically different body styles to appeal to different types of consumers, even though the basic platform remains the same.
Vehicle platform sharing combined with advanced and flexible-manufacturing technology has enabled automakers to significantly reduce product development costs and changeover times. The modular nature of the design and assembly enable manufacturers to build a greater variety of vehicles based on one basic set of engineered components. In addition, platform sharing makes it easier for manufacturers to globalize their automobiles to reach different global markets.
Is there a downside of platform design?
One possible disadvantage of platform sharing is that is limits manufacturers’ ability to differentiate their products. When two competing companies are sharing platforms, how do they maintain the distinctive “DNA” of their respective brands? Certainly in the wake of increased demands for customization of products, manufacturers must carefully weigh the costs and benefits of such an approach.
Some would argue that platform sharing makes it easier for manufacturers to give the customers what they want. In the case of car design, the platform might be shared among multiple models, but what distinguishes one car model from another is often the trim packages and additional options customers can select themselves. This is how carmakers can use the same basic car and customize it per each customer to make it bare bones or luxury-class.
Another inherent risk of platform sharing is the possibility of defects. When a defect is left unidentified in the standard platform out of which several models were produced, the defect, having spread across multiple models, leads to costly recalls on a mammoth scale.
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