Modularity-in-design of battery packs for electric vehicles (EVs) is crucial to offset their high manufacturing cost. However, inconsistencies in performance of EV battery packs can be introduced by various sources. Sources of variation affect their robustness. In this paper, parameter diagram, a value-based conceptual analysis approach, is applied to analyze these variations. Their interaction with customer requirements, i.e., ideal system output, are examined and critical engineering features for designing modular battery packs for EV applications are determined. Consequently, sources of variability, which have a detrimental effect on mass-producibility of EV battery packs, are identified and differentiated from the set of control factors. Theoretically, appropriate control level settings can minimize sensitivity of EV battery packs to the sources of variability. In view of this, strength of the relationship between ideal system response and various control factors is studied using a “house of quality” diagram. It is found that battery thermal management system and packaging architecture are the two most influential parameters having the largest effect on reliability of EV battery packs. More importantly, it is noted that heat transfer between adjacent battery modules cannot be eliminated. For successful implementation of modular architecture, it is, therefore, essential that mechanical modularity must be enabled via thermal modularity of EV battery packs.