Procedure to sustain competitive advantage in an era of changing dominant design

Abstract The change of the dominant design in the automotive industry from internal combustion engines to alternative power trains requires an adaptation of the product portfolio and a transformation of the production system. In the transition phase, an increased changeability is needed. This paper proposes a procedure for managing this transition, based on an integrated assessment of product, production planning and already existing production facilities. A modular product kit reduces the impact of change. An agile production planning process for the upcoming investments allows implementing a suitable degree of changeability without a loss of competitiveness, regarding risk and profitability under uncertainty.