Manufacturability & Value Engineering

We learned in our “Operation Management” class that designing operations processes aims to reduce cost; reduce complexity; additional standardization of components; improvement of functional aspects of the product; and improved maintainability of the product. Furthermore, manufacturing and value engineering procedures are concerned with improvement of design and specifications at the research, development, design, and production stages of product development. Also, we learned that organizations develop a strategy plan to set their expectations of achieving missions and goals.

Volkswagen (VW) Group set a strategic plan known as “Strategy 2018” that aims to make the VW Group a worldwide leader in 2018. Over the long term, VW aims to increase unit sales to more than 10 million vehicles a year and intends to increase its return on sales before tax to at least 8%. To achieve these goals, Volkswagen announced an introduction of new manufacturing design platform called Modular Transverse Matrix or (MQB), which will play a vital role.

Volkswagen Group is a German multinational automotive manufacturing group headquartered in Wolfsburg. It is the world’s second-largest motor vehicle manufacturer by 2011 unit sales and the largest based in Europe. The Group is made up of various big brands: Volkswagen, Audi, Porsche, Bugatti, Lamborghini, Bentley, Skoda, SEAT, VW Commercial Vehicles, Scania and MAN.


Generally, each automobile platform is designed specifically for a market segment and shared between cars of similar size. A typical mass market of VW platform underpins different brands with several model variants. VW is now creating shared modular platforms to serve needs of its different subsidiaries. One of the prominent features of the MQB is the uniform position of all engines designed to accommodate two new four cylinder engine cars. The new engines will reduce the Group’s engines and gearbox variants in the MQB system by 90% and the MQB will also enables an identical mounting position for all current alternative drive concepts from natural gas and hybrid versions to the pure electric drivecitation.


Soon, all of the models and brands under VW Group will be produced on the same assembly line, and even will produce MQB models of different brands together. The advantages of creating a modular design are: simplifications of manufacturing and assembly; easier repair and replacement; parts interchangeability; standardization; and easier diagnosis and remedy of failures. By creating a standardized, interchangeable set of parts from which to build a variety of cars, VW plans to cut the time taken to build a car by 30%. The MQB platform will allow the VW Group to produce a worldwide high volume and niche models at extremely competitive costs over the long term. The MQB takes advantage of synergies in key technologies and allows for greater boost in salescitation.

The modular platform concept is a radical structural advantage for Volkswagen Group in the global automotive industry, allowing it to reduce costs and be more competitive on prices. Do you think that Volkswagen Group cars will dominate the world market share by 2018?


For more information about the new MQB, please read VW press release

4 thoughts on “Manufacturability & Value Engineering

  1. I think that Volkswagen group will achieve its target market share by 2018.  This is due not only because of its new modular design which can be perceived as an important and innovative achievement.  It is crucial that Volkswagen group realizes that other disciplines of management (i.e. Marketing, Personnel Improvement, Financial Management, Customer Service, Strategic Management, etc.) are also as important.  In other words the focus in Operations management is only one strong link among other links in a chain which must be just as strong for Volkswagen to achieve its goal.

  2. No becuase just becuase they can reduce their cost and help reduce the price on their car that people will buy. We in a stage where consumer are trying to differentiat themselves from one another and not nessaryly try to save money expicially when spending money on a car that could cost up to 20k maybe for a 1k car maybe but people are always trying to be unique. They would need to make things like the NSX, Lamborgini, Ferrari, Proches they need a car in their line up that shows power and speend for the car enthusiat that want to show off that would dramatically bring theri brand to a whole new level.

    1. There are already a variety of supercars made by Volkswagen Group; Lamborghini is one of them. Basically, we are talking about affordable yet efficient cars that are comparable to Japanese cars like Toyota. Toyota dominated the world market by offering cheap cars that everyone can buy not by selling supercars. Volkswagen Group is aiming at mass production that cannot be achieved by making supercars but rather rigid cars that are inexpensive. Besides, supercars are not suitable for everyone or everyday use but if you could afford one, they having a variety of choices and brands under their group including: Audi, Porsche, Bugatti, Lamborghini and Bentley.

  3. Hi my name is Joe, I live in Kearney ne. I don’t know if this is the right area to contact but I have an idea for part of an electric car that I believe you never have to charge again. I have done research and have not found and idea or patent that is just like it. And I believe that if a big car manufacture gets ahold of this, then it will change a lot.

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