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Companies are emphasizing modular designs and manufacturing approaches, but to stay competitive and retain market share they must continue to offer products and services of the highest quality. Therefore, since modularity is increasingly popular and product quality is always critical, the purpose of this paper is to examine the impact of modular strategies on key quality dimensions.

This paper first presents an overview of modularity, and then outlines eight commonly used dimensions of quality. Each dimension is then examined in terms of how it can be affected by modularity.

It is shown that modular product design has a significant impact on key attributes of product quality. Six of the eight quality dimensions examined are potentially affected in a positive way by modularity, while five of the eight attributes are affected in a potentially negative manner by the use of modularity.

Since modularity can have both a positive and negative impact on quality, managers must proceed with caution when adopting modular strategies.

This is a seminal work because it considers the impact of modularity on the dimensions of quality. It is argued that the use of modularity should not be considered a panacea by companies searching for a quick solution. That is, there are potentially significant negative side effects associated with modularity.

Benefits of modularity are being limited by the lack of agreement over terminology. Neither researchers nor managers use the same typology, complicating comparisons of modular strategies.

Presents existing problem, then develops comprehensive and necessary typology. Examples illustrate practical use of the typology, and help reader understand implications on product design and future research.

Development of modularity typologies, including their characteristics and implications for product design and production systems, has been minimal. A well‐defined typology for soft modules exists, but literature on categorization of hard modules is limited. Most existing definitions of modularity are related to a common type called manufacturing modularity.

Each type of modularity is characterized by a different set of design attributes. For example, appearance, durability, and ergonomics are important for product‐use modularity, while accessibility, recycling and cost are key considerations for limited life modularity. Designers must understand these different characteristics in order to design products that address relevant customer needs such as cost, customization, serviceability and upgradeability that can give product a competitive edge in the marketplace. When developing individual modules, focus on core characteristics of that module type. When developing a multiple module type product, balance characteristics of the interdependent module types in order to ensure that the product meets customer needs.

Four types of modularity are defined: manufacturing, product‐use, limited life and data access. New products often incorporate all four types in order to address both the needs of the customers as well as the manufacturer.