In this paper, the impact of modular product designs on the performanc
e of manufacturing systems is studied. The performance of product desi
gns is measured by the makespan of the corresponding aggregate schedul
e of the manufacturing system. Design rules for the improvement of per
formance of a manufacturing system are developed. Based on the design
rules developed, the selection problem of modular designs is formulate
d as an integer programming problem. The problem can be solved by an e
xisting heuristic algorithm. Examples are provided to illustrate the i
ssues discussed in this paper.