Consistently achieve your targets
Define clear KPIs and methods to guide transformation, and mobilize your organization to execute and achieve results
Product Architecture
Modular product architecture enables strategic market segmentation through adaptable platforms, reducing SKU complexity.
Creates common platforms tailored for diverse customer segments.
Balances customization with cost-efficiency, allowing rapid product updates.
Reduces SKU proliferation and enhances flexibility in build-to-stock and configure-to-order models.
Market Architecture
Modular product architecture enables concurrent development, where independent modules are developed and integrated simultaneously. This shortens development cycles and speeds up time-to-market.
Enables simultaneous development of independent modules.
Defined interfaces ensure seamless integration without disrupting other systems.
Speeds up product development and reduces time-to-market without full redesigns.
Process Architecture
Modular Management helps HVAC companies optimize their entire supply chain—from sourcing materials to product delivery. By aligning modular designs with supply chain processes, we reduce lead times, improve efficiency, and control costs across all stages.
Optimizes logistics, production planning, inventory, and distribution.
Reduces lead times and improves operational efficiency.
Controls costs from sourcing to final product delivery.
Ensures supply chain resilience in both build-to-stock and build-to-order environments.
Service Architecture
Modular architecture makes it easy to integrate IoT and smart systems into HVAC products. Standardized interfaces ensure smooth incorporation of new technologies, future-proofing your product lines.
Enables seamless integration of IoT and smart systems.
Standardized interfaces minimize disruption to existing systems.
Future-proofs products for ongoing advancements in connectivity.
Solutions to Fulfill Build-to-Stock Operations
Modular Product Architecture
By designing products with interchangeable modules, manufacturers can reduce the number of unique parts and streamline assembly processes, lowering costs and accelerating time-to-market. Scalable Production Processes
Modular systems enable manufacturers to efficiently scale production to meet demand while offering flexible customization options. Solutions to Fulfill Build-to-Order Operations
Configurable Modular Systems
Implementing modular design principles allows for the customization of key components while maintaining standardization where possible, reducing lead times and costs.Digital Configuration Tools
Modular Management's PALMA Composer and PALMA Configurator software streamline the design-to-order process, enabling rapid product configuration, design validation, and production planning. These tools ensure a seamless transition from customer requirements to detailed product specifications, reducing errors and improving efficiency in complex projects. Build-to-Stock (Catalog-Based) Products
Residential Mini-Splits and Multi-Splits
These products dominate the residential market, providing efficient heating and cooling for individual homes. High demand and frequent updates require manufacturers to balance efficiency with adaptability to meet consumer expectations.Commercial Packaged Air Conditioners and VRF Systems
Common in commercial buildings, these systems offer scalable solutions for spaces ranging from small offices to large commercial areas. Manufacturers focus on high-volume production, cost efficiency, quick installation, and regulatory compliance.Packaged Terminal Air Conditioners (PTACs)
Widely used in hotels and multi-unit residential buildings, PTACs are typically manufactured in large batches and sold through distributors with an emphasis on standardization and ease of installation.
Build-to-Order (Configure-to-Order and Engineer-to-Order) Products
Chillers and Large Commercial Systems
Typically found in industrial and large-scale commercial settings, chillers are highly customized to meet specific project requirements. These systems involve detailed engineering and long lead times, prioritizing performance, reliability, and energy efficiency.Industrial Cooling Towers and Air Handlers
These systems are often designed to order, tailored to the specific needs of manufacturing plants, data centers, and other critical applications. The focus is on customization, operational efficiency, and robust performance.Air-Tech Solutions
Air-Tech specializes in advanced air handling, filtration, and ventilation systems for healthcare, industrial, and cleanroom environments. Its solutions prioritize energy efficiency, modularity, and high-performance filtration to meet strict air quality standards.
Accelerated Product Development
Reduce product development time by implementing modular design principles that enable faster prototyping and easier customization.
Cost Reduction
Lower production costs and streamline operations by standardizing components and reducing part numbers.
Increased Flexibility
Quickly adapt to regulatory changes and evolving consumer demands with a flexible, modular product system.
Enhanced Product Assortment
A modular approach expands product lines by combining modules to meet diverse market needs. This strategy enables mass customization, delivering tailored solutions efficiently and cost-effectively.
Sustainability
Design products with modular components that are easier to upgrade, repair, and recycle, supporting sustainability goals.
Integrated New Technologies
Integrate new technologies faster with modular design principles that make it easy to add smart features, IoT, and AI without extensive redesigns
Optimize Complexity Without Losing Choice
A large portfolio can feel like a strength—but too many variants drive cost and slow agility.
- Too many product variants and SKUs
- High inventory and operational costs
- Difficulty maintaining profitability
Your Path Forward
Rationalize your portfolio with configurable architectures that reduce variants while preserving customer choice.
The Payoff
Lower complexity and inventory costs
Streamlined operations and supply chain
Maintain customer choice without excess SKUs
Unlock Modularity’s True Value
Modularity is a great start—but real value comes when it enables configurable products that deliver speed, flexibility, and efficiency.
- Modular platforms that don’t deliver efficiency
- Missing governance and configuration rules
- Complexity that persists despite modularization
Your Path Forward
Transform modular platforms into configurable architectures with clear governance, smart rules, and digital tools.
The Payoff
Increased reuse across product lines
Lower development and lifecycle costs
Faster customization without reinventing the wheel
From Delays to Market Leadership
Custom projects deliver unique solutions—but at the cost of long lead times and high engineering effort.
- Long lead times and high engineering costs
- Difficulty scaling due to one-off designs
- Limited ability to respond quickly to market demands
Your Path Forward
Shift from bespoke engineering to configure to order.
The Payoff
Cut engineering effort by up to 70%
Accelerate delivery times
Stay flexible for customer-specific needs
Launch Faster With Configurable Platforms
In fast-moving markets, speed is the difference between leading and lagging.
- Long development timelines
- Missed opportunities and lost market share
- Inability to respond quickly to changing needs
Your Path Forward
Design configurable architectures that accelerate launches and enable rapid adaptation.
The Payoff
Shorter time-to-market
Competitive advantage in dynamic markets
Quick response to customer needs
Bosch: Regaining Market Leadership Through Modularity
Bosch transformed its product development and operations with a comprehensive modularity program. By introducing modular architectures, lean manufacturing, and late-point differentiation, the company streamlined production and accelerated innovation.
The result was the AirX family—the quietest and most energy-efficient air-to-water heat pump ever built. This transformation not only strengthened Bosch’s cost structure and productivity but also restored its competitive edge, driving double-digit market growth.
Outcomes
44% reduction in product cost
60% fewer part numbers
40% reduction in inventory
50% reduction in assembly time
40% less floor space
Trane: Sustaining Market Leadership with Modularity
Trane Commercial Air Handlers faced mounting pressures—rising costs, aging product families, increasing energy-efficiency requirements, and fierce competition with new features and options. Traditional improvements through lean and automation were not enough to maintain its long-held leadership.
By implementing a modularity program, Trane achieved breakthrough results. The new air handler line became the most energy-efficient on the market, reducing energy consumption by up to 30% while delivering greater product variety and lower ownership costs for customers. With modular designs, Trane successfully defended its market leadership and strengthened its competitive advantage.
Outcomes
58% reduction in part numbers
15% reduction in overall product cost
10% reduction in the cost of operations
Transforming Industries Worldwide
Empowering leading industries worldwide – Customers across the globe trust Modular Management to drive growth and innovation
Johnson Controls Hitachi (JCH): Market Segmentation and Modularity Implementation
The story explores the challenges of creating customer personas, fostering cross-functional collaboration, and utilizing analytics to optimize market representation. Discover how JCH leverages modularity and strategic insights to drive growth in a rapidly evolving market.
