Entry Date:
September 21, 2012

Commonality and Platforming


Platforms, or the reuse and sharing of architectures, components, manufacturing processes, interfaces and infrastructure across members of a product family is an often leveraged strategy for improving corporate profitability. Work done in the System Architecture Group has shown that many firms fail to achieve their desired commonality targets, showing weaker investment return on their platform investments. For example, the Joint Strike Fighter, a military aircraft built by Lockheed Martin with 3 variants, has fallen from targeted 80-90% parts commonality in the early 1990s to 30-40% parts commonality currently.

Work in this area has spanned three areas: Identifying technically feasible commonality opportunities, valuing the financial benefits of commonality, and characterizing the organization strategies available for platform managers.

We used 7 industrial cases from printing presses to automotive to study the phenomena of divergence. We identified several underlying drivers of divergence, ranging from incorporation of unanticipated technology to failure to understand when optimization decisions within one product create net cost increases when considered across all products on the platform. This study produced recommendations for identifying financially beneficial incidences of commonality, and organizational strategies for rewarding appropriate levels of commonality.