Mass customization is not simply understood as a business strategy, but also as a concept for supporting other business goals such as the operation of a mass or craft manufacturing business. Such systems combine the low unit costs of mass production processes with the flexibility of individual customization mass customization is the new frontier in business for both manufacturing and service industries. Customers and their expectations have shifted from a broad base of uniformity and. Selecting a customization strategy under competition.
Its purpose is an attempt at assessing the effects of mass customization carried out on a newly designed technoporta technological line for automated door production on the basis of an analysis of selected technical and. This paper surveys the literature on mass customization. If youre looking for a free download links of mass customization. Integrating lean and other strategies for mass customization. Mass customization mc, a concept that came up in the late 1980s, describes the ability to offer products or services, which are individually adapted to the needs of each customer throughout. Mass customization a strategy to create a customer. In it, porter analyzes the complexity of the new competitive landscape in its five main forces. The phrase mass customization is striking, for it seems a contradiction in terms. In his book competitive advantage, he transformed theory and practice of business strategy teachings around the world. In an everchanging environment, people, processes, units, and technology reconfigure to give customers exactly what they want. This strategy is not limited to customizing standard products, but also covers. Mass customization strategy development by firm springerlink. Customization is on the rise, and the bestinclass are making this a top priority.
Although each of the four companies has implemented a strikingly different customization strategy, all share an orientation that challenges the. But mass customization has been trickier to implement than first anticipated. Mass customization strategies order at more information download a free electronic version 3. Mass customization can be realized differently at a food plant than a textile or carassembly plant, but all factories may achieve big savings. Mass customization of printed garments will require the use of digital printing technology even though the reverse is not true. Joseph pine, who made mass customization popular with his 1993 book. The key to profiting from mass customization is to see it not as a standalone business strategy that is replacing todays production and distribution systems, but as a set of organizational capabilities that can supplement and enrich an existing system. This paper focuses on three interrelated and complementary strategies for managing supplychain integration. Download all the business templates this week 60% off. Note that customer satisfaction is the main goal in. Mass customization is the process of delivering widemarket goods and services which are modified to satisfy a specific customers need.
Customers are provided with basic product and a range of features that they can add or subtract to get a unique product. Pdf mass customization is designed to deliver highly customized products with mass production efficiency. Social websites like facebook and tumblr operate on mass customization principles, as does squarespace, for example, which helps you create your own website. While customization is a known strategy in many businesstobusiness markets, todays buyers markets are also compelling consumer companies to. Michael porter is one of the gurus of contemporary management. Mass customization strategies development of a competence. Mass customization and strategies linkedin slideshare. Mass customization refers to a business strategy that conciliates two different business practices, which are mass. Mass customization is an important business concept, which numerous brands are adopting these days. Nov 05, 2012 mass customization economics huffman 1998 theres a thin line between mass customization and mass confusion piller et al. Dec 27, 2011 in conclusion, mass customization is a performance ideal strategy in the way that zero defects in respect of quality. Mass customization an overview sciencedirect topics.
Mass customization, in marketing, manufacturing, call centres and management, is the use of flexible computeraided manufacturing systems to produce custom output. Mass customization is a marketing and manufacturing. Mass customization carries the benefits of high product sales associated with mass production, and by offering a foundation product and giving customers a range of models or the option to add. Mass customization is a contemporary strategy to satisfy customer needs. Mass customization as a competitive strategy is getting progressively increasing attention in business and academic arenas due to its high potential to provide sustained strategic advantage in a. When competing firms choose to customize, we show that firms target only certain customer segments with customized products. Mass customization as a solution for the service industry. The following press reports provide a good introduction into mass customization and open innovation. As an operations manager they can make your life a lot easier than it usually is on a daily basis. You produce goods at a rapid pace at low cost to satisfy unique customer desires.
Mass customization advantages and disadvantages mass customization mass customization is considered to be the happy medium when the buyer wants you to make customized, made on order goods but you want to produce and sell the product at a minimum price to cope up with the mass manufacturing. Mass customization is a strategy that makes it possible for a firm to customize products to individual customer requirements and producing those with the standards of mass production. We will then discuss the situation of the athletic footwear industry and different approaches to mass customization in this industry. Mass customization is finally the future of products. Article on mass customization as a cost reduction strategy. The book is brilliant and incredibly simple, so reading is a must. Mass customization is a business concept for every organization. A mass customization strategy enables a firm to match its product designs to unique consumer tastes. However, a combination of advances in information and technology robotics and advanced equipment is making the production increasingly possible to mass customize to rapidly re. Mass customization is the production of unique goods at scale. Apr 15, 2011 mass customization has been the next big thing in product strategy for a very long time. Definition and strategic capabilities from a strategic management perspective, mass customization is a differentiation strategy. Shoes, computers and even cars can be purchased with a range of customization options, such as colors, parts and features. An advanced production line produces thousands of variations of eyeglass frames.
The chapter ends with a reflection of the development of mass customization at adidas. Feitzinger and lee 1997 pointed out that the critical point of implementing a mass. It is a technique that allows a firm to produce a broad array of product variations to serve different markets, preferences and requirements. Mass customization, market intelligence, mass production. Thus there are two challenges to mass customization. The miadidas mass customization strategy request pdf. The first was their core customized shoe, which had 1520 choices. This paper reports the results of a survey conducted to explore issues surrounding mass customization and in particular its implications for operations. By customizing products and services we combat the idea that certain products are commodities. Moreover, the concept is also utilized in the development of marketing strategies for product and service lines and during the process of recognizing the target audience of a brand or business. Jan 31, 2012 we will start with a brief overview of the mass customization concept and introduce a framework of three strategic capabilities that make mass customization work. I know, it sounds crazy, i thought the same when i first got hold of the concept.
These strategies can help you to improve your operations. Today i define mass customization as the lowcost, highvolume, efficient production of individually customized offerings. Twelve elements for a mass customization wood products business strategy 1. How technology can drive the next wave of mass customization 5 provide a userfriendly and speedy way to gather a consumers customization prefer ences. Mass customization mc, within the marketing, manufacturing, and management contexts of an organization, is the use of flexible, computeraided manufacturing systems to produce custom outputs in a mass production environment. Important books from 1992 and 2000 further promoted the idea that mass customization was the future of products yet for years, mass customization has disappointed. Mass customization strategy modern manufacturers like mogul know that implementing mass customization strategies is incredibly difficult without the right software and tools. Opportunities, methods, and challenges for manufacturers pdf, epub, docx and torrent then this site is not for you.
Kamis, koufaris and stern 2008 conducted experiments to test the impacts of mass customization when postponed to the stage of retail, online shopping. Handbook of research in mass customization and personalization. This is the core element that differentiates mass customization from other strategies like lean management or agile manufacturing 3. This is identical to the book chapter of mass customization in cirp. Klaus moser is an independent consultant, was general manager at sanofi pasteur msd, worked in various management positions at pfizer, was director strategy at pfizer, was a project leader at boston consulting group bcg and a researcher at the. Models of the emergence and diffusion of mass customization. Three strategic capabilities to implement mass customization article pdf available in ssrn electronic journal january 2012 with 8,069 reads how we measure reads. Mass customisation is a type of manufacturing system that combines sensitivity to customer preferences with standardisation of processes, and therefore seeks to combine flexibility, low costs and high quality. Four process strategies process focus repetitive focus product focus mass customization focus comparison of process choices 2. Why wouldnt people want to be treated as individual customers, with products tailored to their specific needs. Mass customization means to offer products or services which meet the demands of each individual customer, but which still can be produced and delivered with mass production efficiency. It is also usually seen as a flexible strategy and can help your operations to maintain efficiency. Handbook of research in mass customization and personalization, part 1. Ijopm implications of mass customization for operations.
Mass customization calls for flexibility and quick responsiveness. Nov 06, 2018 michael porter is one of the gurus of contemporary management. For fast and easy production, mass customization products should be designed for manufacturability. Click download or read online button to mass customization concepts tools realization book pdf for free now. Operations management process strategy chapter 7 1 operations management process strategy chapter 7 2 outline. Nike learns to mass customize shoes while nearshoring. Should your firm adopt a mass customization strategy. Differences between mass production and mass customization, and their impact on the development of production systems are discussed in length.
Apr 12, 2017 a mass customization strategy enables a firm to match its product designs to unique consumer tastes. While the goal of mass customization is to produce customized goods at low costs, postponement strategy focuses on delaying customization as close to the customers as possible. As such, mass customization is related to the term flexible production, as used by dertouzos et al. Mass customization concept future shock by toffler, 1970 future manufacturing enabled by information technology would be able to provide customized products in a large scale with little or no extra cost pine et al. The customized products are provided at the same price as of the number of mass production products. In this book, it tells you how you should change your business operation to mass customization step by step, also tell you 5 methods to customize your products or services. As nike moved into an ecommerce strategy, they decided to offer three levels of customization.
Mass customization is the method of effectively postponing the task of differentiating a product for a specific customer until the latest possible point in the supply network. Mass customization, sap info the sap magazine, vol. Mass customization mc has emerged in the last decade as the premier strategy for companies in all branches of industry to profit from heterogeneity of demand and a broad scope of other customer demands. Mass customization concepts tools realization download mass customization concepts tools realization ebook pdf or read online books in pdf, epub, and mobi format. Companies like levi strauss, for example, failed when trying to switch to mass customization. Mass customization is the customization and personalization of products and services for individual customers at a mass production price. Berger and others published the miadidas mass customization strategy find, read and cite all the research you need on researchgate.
Mass production covered most industries in our life and one of the newsiest industries which adopt mass production strategy is building construction industry. Mass customization is a term first coined to describe a trend towards the production and distribution of individually customized goods and services for a mass market davis, 1987. This is identified as one of the most complex of the other processes. Mass customization model in food industry using industry 4. Mass customization as a solution for the service industry 5 052012 maarten ter harmsel preface this thesis is the conclusion of the master business administration i started in february 2010. Jul 17, 2009 mass customization mc manufacturing requires high flexibility to respond to customer needs in a timely manner. Learn vocabulary, terms, and more with flashcards, games, and other study tools. May 23, 2019 mass customization is the process of delivering widemarket goods and services which are modified to satisfy a specific customers need. Implementation of mass customization tools in small and. A snapshot of mass customization trends business 2 community.
Mass customization has been identified as a competitive advantage strategy by an increasing number of companies. Mass customization and open innovation books, papers and studies. Mass customization has been the next big thing in product strategy for a very long time. Implications of mass customization for operations management. The idea of mass customization in the door industry using. Mass customization is the customization and personalization of products and services for customers at a mass production price or a price not too far from it. Standardization and customization linkedin slideshare.
There are shown to be important implications for operations management in a strategy of mass customization, and thus substantial scope for further research by operations management academics. Purpose nowadays, managers achieve superior performance and greater efficiency by evaluating their firms readiness for mass. Important books from 1992 and 2000 further promoted the idea that mass customization was the future of products. Products should be developed in synergistic product families and be designed around aggressively standardized parts and materials, designed for no. However, as the degree of customization increases and customer involvement occurs earlier in the design and fabrication stages, the direct application of lean principles to maintain flow and low. While online configurators have been around for years, user interaction in the past was limited to selecting a few configuration options in a form. It is the concepts behind mass customization that will allow agents to move into a more effective advisory role. After all, companies need to see that with all the promising advantages mass customization brings along, manufacturers also face great difficulties when implementing such a strategy. The research and practical experience collected in this book presents the latest thinking on how to make mass customization work. A model of mass customization for engineering production. Mass customization is now widely used by many businesses, but we may not know how it operates. Mass production implies uniform products, whereas customization connotes smallscale crafts. How technology can drive the next wave of mass customization.
The next revolution in mass customization jerry wind arvind rangaswamy f abstract in this conceptual paper, we propose that the next stage of evolution of mass customization is customerizationa buyercentric company strategy that combines mass customization with customized marketing. After reading the book, i found a clearer picture about mass customization. Standardization and customization a global debate dr. Ppt operations management process strategy chapter 7. If mass customization creates opportunities and challenges for economies and large companies, it creates analogous challenges in more abstract realms, like design. Lean manufacturing principles can be easily applied to situations with low levels of mc. The subject of the origin of mass customization strategy was taken in the study. This book presents seven different mass customization strategies and the competencies needed to successfully implement theses strategies. Introduction global versus regular marketing scope of activities are outside the homecountry market productmarket growth matrix 12 3. With todays information technology, mass customization customers can be included into the value creation chain by defining, configuring or modifying an individual order. Process strategy in operations management mr dashboard.
Pdf from mass customization to mass personalization a. Mass customization strategy for cabinets, furniture and. Combining the best of both promises exciting choices for consumers and new opportunities for businesses. Today i define mass customization as the lowcost, highvolume, efficient. Otherwise planning production and tracking material inventory becomes more pain than its worth.
698 865 463 1442 640 950 669 1128 282 370 698 989 362 390 728 1419 1422 923 200 1283 732 1286 1185 47 1189 1068 1056 961 1286