Mass customization

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  • Very wordy presentation

    The Nike running shoe was the closest to mass customisation but it was really just a configurator for colour options.

    If you really want to see mass customisation in action you should look at www.lewistaylorshirts.com

    Over a 1,000,000,000 options for just a few dollars
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Mass customization

  1. 1. As a Collaborative Engineering EffortBy Songlin Chen, Yue Wang, Mitchell M Tseng Prepared by : 12133 Chirag A. Thakur 12137 Dinesh Chand Devapujala 12148 Manoj Sharma 12156 Rheetam Mitra 12166 Pappu Yadav 12182 Sarthak Rohatgi
  2. 2. AbstractFrom a collaborative engineering perspective, masscustomization can be viewed as collaborative effortsbetween customers and manufacturers, who havedifferent sets of priorities.
  3. 3. Mass Customization - An Introduction It aims to deliver product and services that best meet customers’ needs with near mass production efficiency The paradigm shift to mass customization is made an imperative for many companies to survive in an increasingly diversified, fragmented and competitive market place Currently, the focus of research in mass customization is shifting from its strategic viability to operational feasibility What? How? Why?
  4. 4. Mass Customization - An Introduction (cont.) Despite its advances in academia and industry, mass customization continues to be challenged by critics One of the arguments against mass customization is that it has limited novelty and restricted applicability Engineering Collaboration via Negotiation (ECN) paradigm (Lu 2003) promises great potential to tame many of the challenges that are currently constraining many mass customization programs
  5. 5. 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.’s Harvard Business Review article, 1993 – the ability to provide individually designed products and services to every customer through high process agility, flexibility, and integration Hart 1995 et al. - Mass customization is a system that uses information technology, flexible processes, and organizational structures to deliver a wide range of products and services that meet specific needs of individual customers at a cost near that of mass-produced items
  6. 6. Mass Customization vs. Mass Production*Mass Customization as a Collaborative Engineering Effort
  7. 7. Development of Mass Customization The paradigm shift to mass customization is mainly propelled by three forces :  Market demand - ‘the mass market is dead and segmentation has progressed to the era of mass customization’ – Kotler(1989)  Market competition - Product variety is exploding while product life cycle is shortening  Technological revolutions - Flexible manufacturing systems allow manufacturers to quickly adapt to changes without incurring high penalty in terms of cost and lead time
  8. 8. Mass Customization Economics Huffman (1998) – “there’s a thin line between mass customization and mass confusion” Piller et al. (2004) – “with customers integrated into the value creation process, companies gain access to more accurate information about market demand and can postpone some activities” which add to cost pools In general, the key issue in mass customization from an economic perspective is how to leverage economies of integration to compensate potential loss of economies of scale
  9. 9. Conflicts in Mass Customization Conflicts in name :  Mass – Aggregation  Customization – one-of-a-kind Conflicts in operability : Customers’ demands are diverse and irregular which lead to high component variety, large numbers of suppliers, and high administrative complexity
  10. 10. Collaborative Engineering As a Tool for Conflict Resolution Monplaisir and Salhieh (2002) – “collaborative engineering can be viewed as a process in which people working in teams according to engineering methodologies and supported by technical tools can share resources and knowledge to achieve common goals” Lu (2003) proposes Engineering Collaboration via Negotiation (ECN) as a new paradigm for collaborative engineering. ECN is defined as “a socio-technical decision making activity where a team of stakeholders with different expertise and mixed motives engage in interactive and joint conflict resolutions to co- construct consensual agreements of some engineering matter”
  11. 11. Mass Customization - In Collaborative Engineering Perspective Conceptually, mass customization can be taken as a collaborative engineering activity, where customers and manufacturers with asymmetric information and different preferences engage in interactive and joint conflict resolutions to co-create an artefact How such collaboration can be carried out effectively and efficiently is an ideal research topic for collaborative engineering
  12. 12. Mass Customization - The Generic model* Spring et al. (2000) proposed a generic model of product customization :*Adapted from Spring et al. 2002
  13. 13. Mass Customization - The Generic model* (cont.) Problem Solving : The product customization concepts and design schemes are determined and agreed between customers and manufacturers Design Specification : This stage determines the firm’s performance on some of the operational objectives
  14. 14. Mass Customization - The Generic model* (cont.) Transfer : Convert design specifications into actual products  A limitation of this 3-stage generic model is that customer – manufacturer interaction is confined to the problem solving stage only
  15. 15. Application scenarios Scenario I : Co-Innovation  The manufacturer-centric view holds that innovations result from intentional research while the user-centric (or customer-centric) view contents that many innovations actually come from users  Problem solving in mass customization is collaborative in nature and designated as collaborative innovation (co- innovation)*  Family Architecture (PFA) - As a framework for co-innovation PFA allows customers, product engineers, and process engineers can work under a unified framework with their interdependent relationships explicitly mapped out * Songlin Chen, Yue Wang, Mitchell M. Tseng
  16. 16. Application scenarios (contd.) Scenario II : Co-Configuration  The stage where customers and manufacturers come to agree upon the specifications of a specific product offering or customization type  In a typical organization setting, co-configuration often involves customers and sales engineers (sometimes design engineers)  Besides product configuration systems, personal recommendation systems (Stolze and Strobel 2004) are proposed to facilitate customers in product configuration enabled by techniques like data mining, recommendation system
  17. 17. Application scenarios (contd.) Scenario III : Co-Production  Co-production corresponds to the transfer stage (Spring et al. 2000) by including material conversion, material transportation, shop floor control, procurement, inventory management etc.  By sharing demand and supply information, supply chain partners can better utilize production resources in response to volatile market demand
  18. 18. Conclusion Mass customization defies the contradiction between mass and customization and aims to deliver products and services that best meet individual customers’ needs with near mass production efficiency It is important that all parties concerned can engage in collaboration with sufficient trust and only then collaborative engineering can play a significant role The Economist: “Mass Customization a Result of the Third Industrial Revolution”
  19. 19. Application of Mass Customization
  20. 20. Application of Mass Customization
  21. 21. Application of Mass Customization
  22. 22. Application of Mass Customization
  23. 23. Application of Mass Customization
  24. 24. References :  http://etheses.nottingham.ac.uk/182/1/Brabazon_thesis.pdf  http://en.wikipedia.org/wiki/Mass_customization  http://www.build-to-order-consulting.com/mc.htm  http://mass-customization.info/  http://www.ft.com/cms/s/dd9634d0-affd-11e1-ad0b- 00144feabdc0,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2 F0%2Fdd9634d0-affd-11e1-ad0b-00144feabdc0.html&_i_referer=http%3A%2F%2Fmass- customization.info%2Fpost%2F25572611981%2Fthe-financial-times-mentions-personalized- production-as#axzz1yQucDfcG  http://mass-customization.info/post/3466529920/definition-of-the-term-mass-customization  http://nikeid.nike.com/nikeid/index.jsp?promoID=ONHOME#home  http://images.google.com/  http://www.porsche.com/usa/models/
  25. 25. Thank you!

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