Product customization has been used for many years, and with this concept, product families can be designed that are better matched to the needs of customers through the use of market segmentation and modular architecture. This study is composed of two phases: the first phase establishes the modular architecture, and taking a bicycle as the case study, applies the Interpretive Structural Model (ISM) to modularize and cluster parts, and then models the connecting relations between the parts numerically using a Disassembly Effort Index (DEI). The second step involves the development of a product family using cluster analysis to divide the experimental samples and the employment of an Analytic Network Process (ANP) to obtain the optimal weight performance of the modules after establishing the market segmentation model. Results of the case study establish four product families and address construction performance of both the common and independent modules between the product families.
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