Mass Customization

Topics: Manufacturing, Customer relationship management, Marketing Pages: 13 (3914 words) Published: May 3, 2011
Executive Summary
In this essay, the author will explain impact of the mass customization in the world nowadays. Some relevance with economy keys also will be explained to show the importance of mass customization. The author will also provide value chain of mobile phone manufacturing regarding mass customization. Furthermore, the essay will include some perspective and challenges that faced by Mass Customization Company, and also the New Product Development Stage, using Apparel Industry as example.

In business nowadays, the trend of manufacturing is shifting from mass production (MP) concept into mass customization (MC) concept. Mass production is an “old” concept practiced and popularized by Henry Ford that produces a large quantity of goods. With his famous quotation, “"A customer can have a car painted any colour that he wants - so long as it is black", that stated that the customer don’t have any bargaining power to specify their need and wants to producer. However, the era currently is shifting; customer has more power to express their want and needs. With tight competition between each other, manufacturer cannot hope customer will come and choose their product. They are become more aware to produce such products or services that can satisfy each and every one of their customer. This term nowadays called as mass customization, which refer to concept of producing goods based on the need of every individual. With producing custom product that suits everyone, they can increase the satisfaction level of the customer. And also it’s important to make sure the gap price comparing with mass production goods are not really significant.

Question 1
Critically assess the relevance of mass customization for consumers and corporations with respect to living standards, E-Commerce, manufacturing techniques and as a competitive advantage.

* Living Standards
Application of Mass Customization (MC) in the world nowadays made our life become easier. Based on Cox, et el. (1998), the author pin out some point that showing the relevance of MC with the living standards of the people. Firstly, MC allow the low income population to enjoy certain goods (e.g. internet services) that only enjoyed by rich people in the past.

Other’s benefit of MC is reducing the inflation level that indirectly affects the living standard. The MC concept by build to order (BTO) is directly reducing the wastage of resources due to wrongly predicts the trends. Lastly, in the field of medicine, customization of the drug based on the information registered of each patient (e.g. personal background, ages, etc.) will lead to the increasing of living standard due to correct dosage, and also they’ll also curtail side effects of the drugs given.

* E-Commerce
Nowadays, internet become one of the most potential resource that used by the MC manufacturer to communicate with their buyer. By providing cheap and easy communication tools, internet is better media communication compare with telephone or faxes that suit the need of MC. Furthermore, many of these MC manufacturers then utilize it with creating their own website and provide internet transaction (E- Commerce) that give unique sensation by the ability of their customer to customize their product.

One of the companies that sell their custom product in internet is Dell. Dell is started their business by selling their notebook online till brought them become one of the biggest PC vendors worldwide nowadays. By providing their customer the right to customize their laptop (e.g. Hard disk, Memory, Processor, etc.), they are successfully deliver superb value to their customer.

* Manufacturing Techniques
Application of MC in the manufacturing industry is greatly impacted the system that used by the manufacturer. E.g. Toyota, nowadays they are using Toyota Production System (TPS) as their main manufacture core concept. The implementation of the Just in Time (JIT) concept (see figure...
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