Product modularization and effects on efficiency: An analysis of a bus manufacturer using data envelopment analysis (DEA)

Improvement of efficiency and productivity is a contemporary challenge for industrial organizations. Product modularization is considered a strategic alternative to achieve such objectives. However, empirical evidence supporting these expectations are scarce in the literature. Thus, it is necessary to assess the effects of modularization on the improvement of the efficiency of a company field or a production system. In this context, this study aims to analyze the effects of product modularization on the efficiency of the Product Engineering and the Production Process of a bus manufacturer. The effects were evaluated through a case study using Data Envelopment Analysis, Analysis of Variance and Causal Impact. The results show that product modularization provided statistically significant improvements in efficiency. The results also establish and empirically support a causality (Causal Impact) between modularization and improvement in the efficiency of the Product Engineering and the Production Process of the company analyzed.