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Systems engineering is not a new discipline for todays automotive OEMs and suppliers. So, why is it that many feel the discipline is under-utilized or not utilized at all in main-stream product development? For those that do believe systems engineering is a key activity in the development cycle, why is it common to disagree on a definition of what it is or how it manifests itself in the development cycle? If we examine the development activity of leading OEM's and suppliers in any industry, there can be no doubt that product development is a complex and intensive activity. Many disciplines are utilized with many specialized skills deployed throughout the lifecycle of the typical product, and even more so in the automotive industry. One can point to several processes that seem to indicate the presence of systems engineering, yet the ability to clearly define whether or not - and to what degree - we leverage systems engineering is still difficult.

To increase sales and market position, automotive OEMs must have comprehensive strategies for developing innovative products while continuing to reduce costs, increase quality and accelerate time to market. One of the strategies that can help them to achieve these objectives is strategic modularity. A modularization strategy can help automakers reduce cost and time to market, as well as improve quality and launch readiness. While a significant number of OEMs are adopting modularity strategies, the realization of benefits has been, for many OEMs, limited in scope and scale. These limitations are due to: Process issues in managing dependencies across multiple programs and platforms; Measurements which discourage modularity adoption, together with an inability to measure enterprise costs; Organizational issues associated with siloed structures, a lack of clear roles and responsibilities, and the management of disparate groups across the extended enterprise.