Modular design involves subdividing a system into smaller modules that can be independently created and used in different systems. Modular design allows for easier diagnosis, repair, replacement, and manufacturing of parts. It also adds flexibility to production and marketing. Standardization aims to produce maximum variety from minimum tools and parts through establishing common units of measure. The benefits of modular design and standardization include lower costs, better quality control, and improved production planning and resource allocation. However, standardization can decrease product variety and consumer appeal over time.