Abstract: Modularity has been recognized as a vital factor to implement mass customization, it has strong relation with product architecture, product development process and supply chains. The characteristics of different types of modularity (I.e. component swapping/sharing modularity, fit-to-cut/bus modularity and component combination modularity) and their impacts on component sourcing are analyzed. An evolution diagram is presented to illustrate how the level of customization affects the type of modularity. Furthermore, the relationships among the customer order discoupling point, the variety and volume of product and module, and the level of mass customization are discussed. Then, according to different ratios of product volume to product variety, two types of product customization are defined , namely, the high and the low degree of customization. Based on cases study of automobile, hydraulic press, machine tool and domestic appliance, the proper type of modularity and corresponding component sourcing strategy in different conditions of customization are summarized. Finally, the relationship between the identification level of modules and supplier resource planning, out-sourcing decision-making is analyzed, and then a roadmap of implementing mass customization considering component sourcing is given.

Key words: Mass customization, Product development Modularity, Supplier management