Mass Customizatin
MASS CUSTOMIZATION
BY SWATHI. A (2T2-38) CH. UDAYA LAKSHMI (2T2-15) CHANDAN PATNAIK SHAD ALI
MASS PRODUCTION: * 1970’s – Slowing Economy – Rising Oil Prices * Need for alternative approach * 1970’s-1980’s – Increasing competition within U.S. market from outside countries, esp. Japan * Late 80’s-early 90’s: Literature proposing MC * Development of internet (esp. product configuration systems) in mid-1990’s opens door to widespread use of Mass Customization * Mass Production – example: Ford * Division of work * Low variety of output – ‘any colour as long as it’s black’ * Constantly rising volume sales, and lower input costs = lower prices (economies of scale) * OK in permanently expanding economy with favourable demographics
MASS CUSTOMIZATION: * Mass Customization Defined * Nuts and Bolts * How it Works * A Real World Example * Summary
Mass Customization:
History:
* Mass production, or the ability to produce large amounts of uniform products, first became popular around the turn of the 20th century. Henry Ford used the concept to produce high quality and inexpensive vehicles starting as far back as 1910. One of the flaws of mass production, however, was that the final product was always the same, and any deviation or customization was minimal. It wasn’t until midway through the 1980’s that the term ‘mass customization’ was first used and became in vogue.
* Stanly Davis is credited with first using the term in 1987. The basic idea of mass customization is the ability for custom products to be produced on a scale, as well as price, similar to mass production. Although this concept seems almost obvious and inevitable in today’s world, true mass customization would never have been possible without the internet, computerization, as well as other technologies that would have been inconceivable almost fifty years ago.
DEFINATION: * Mass
BY SWATHI. A (2T2-38) CH. UDAYA LAKSHMI (2T2-15) CHANDAN PATNAIK SHAD ALI
MASS PRODUCTION: * 1970’s – Slowing Economy – Rising Oil Prices * Need for alternative approach * 1970’s-1980’s – Increasing competition within U.S. market from outside countries, esp. Japan * Late 80’s-early 90’s: Literature proposing MC * Development of internet (esp. product configuration systems) in mid-1990’s opens door to widespread use of Mass Customization * Mass Production – example: Ford * Division of work * Low variety of output – ‘any colour as long as it’s black’ * Constantly rising volume sales, and lower input costs = lower prices (economies of scale) * OK in permanently expanding economy with favourable demographics
MASS CUSTOMIZATION: * Mass Customization Defined * Nuts and Bolts * How it Works * A Real World Example * Summary
Mass Customization:
History:
* Mass production, or the ability to produce large amounts of uniform products, first became popular around the turn of the 20th century. Henry Ford used the concept to produce high quality and inexpensive vehicles starting as far back as 1910. One of the flaws of mass production, however, was that the final product was always the same, and any deviation or customization was minimal. It wasn’t until midway through the 1980’s that the term ‘mass customization’ was first used and became in vogue.
* Stanly Davis is credited with first using the term in 1987. The basic idea of mass customization is the ability for custom products to be produced on a scale, as well as price, similar to mass production. Although this concept seems almost obvious and inevitable in today’s world, true mass customization would never have been possible without the internet, computerization, as well as other technologies that would have been inconceivable almost fifty years ago.
DEFINATION: * Mass
References: * www.MadeForOne.com (naturally!) * www.mass-customization.de * Living in Dell Time (www.fastcompany.com/magazine/88/dell.html) * Pine, B. Joseph, Mass Customization: The New Frontier in Business Competition, Harvard Business School Press, ISBN 0-87584-946-6 (paperback)