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In the early days of computer control, only one centralized computer was responsible for executing the algorithms. Increasingly, computer control algorithms reside inside individual system components in a distributed fashion. Variable camshaft timing (VCT) is an appealing feature for automotive engines because it allows optimization of the cam timing over a wide range of operating conditions. In this paper, a method to distribute the discrete multiple-input mutiple-output controller for the VCT engine to improve the component swapping modularity of the VCT actuator and the EGO sensor components using network communications is presented. First, a discrete LQG controller is designed, and then this controller is distributed to the engine control unit, the VCT controller, and the EGO sensor controller in order to maximize the component swapping modularity of the system. A control oriented pre-optimization technique, which simplifies the optimization problem, and a candidate solution was devised to maximize component modularity.