Which term describes the approach of using the same component across different finished goods?

• A. Milk Run
• B. Mura
• C. Modularization
• D. Pacemaker

Answer: (C)

The approach being tested is modularization: designing products so that a single component or module is shared across multiple finished goods. This creates commonality among SKUs, reducing the number of unique parts, cutting procurement and changeover costs, and improving flexibility and economies of scale. By using the same component in different products, you can simplify planning, stocking, and manufacturing, while still delivering a family of related items.

Milk Run is about optimizing a pickup route for parts, not about product component sharing. Mura refers to variability or unevenness in a process that creates waste, not to product design. A pacemaker item in CPIM terms is a key item that drives the production plan, not the practice of reusing components across products. So modularization best fits the concept described.