The strategy of mass customisation is mainly used by companies who are operating in a highly competitive market, trying to find a way to differentiate their products. Mass customization allows customers to feel more involved in the production side of the product, making the product feel more personalised and unique. They are able to satisfy the diverse needs in their market segment while trying not increase the cost of production (Winsor, R. (2008)). By having the ability to better match the consumers need, they are able to reduce the amount of stock unsold which in turn reduces their wastage costs (Dabholkar, P et al. (2009)). However they need to ensure that their customer market segment are interested and want this type of variety otherwise it will be a waste of resources and time.
For a company’s product to either be considered by potential customers, it is essential that the company fulfils the order qualifiers (OQ’s) that the customer expects. It will be the order winning (OW’s) factors which will help persuade the customer to complete the purchase. Cost, quality, flexibility, dependability and speed are the five internal performance objectives that will help the company achieve their OQ’s and OQ’s. The main one which applies to Mass Customisation is the company’s flexibility; the ability to produce a large volume of new and existing products, which can be modified to suit the customer. The use of OQ and OW factors can be seen through Nikeid. With their OQ’s being able to buy any standard design of trainer, however it the OW factors of being able to customise the design with a variety of different colours and features which will persuade the customer to complete the purchase. These OQ’s and OW’s are likely to change over time, however mass customisation enables them to increase their customer knowledge; learn what they want, what are popular features and identify emerging trends. Therefore they can see what OW’s are becoming
IE5620 Module 3 Lesson 1: Itinerary to Mass Customization This presentation is based on: Cooper, Alan (2000). Itinerary to Mass Customization. Introduction Before you begin In this lesson Complete the following: • Module 3 readings In this lesson, you explore how interactive mediums and agile manufacturing methods make mass customization possible. Specifically, you will have the opportunity to: • • • Identify products or services that represent each level of the customer relationship cycle…
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direct-distribution which eliminates wholesalers and retailers and allow a complete control over inventory levels and distribution cost. With no intermediary Dell could monitor and react immediately to their customers’ needs. With the focus on mass customization, Dell provide a unique service and product to each of their customer by creating a standardize product options. To deliver their product and service in a timely manner, project manager has to create an efficient production schedule. Its goal…
They could then send these generic parts for assembly in the assembly plants in Europe and Asia. They can also build an assembly plant in each of these countries and leave the customization and location of the printers to these plants. The availability would increase while not increasing the inventory level in Canada. The advantages of this process can be quantified by making costs comparison and sales comparison before and after…
2 Mass customization Mass customization is a strategy whereby a firm’s flexible processes generate a wide variety of personalized services or products at reasonably low cost. Essentially, the firm allows customers to select from a variety of standard options to create the service or product of their choice. 1 Competitive advantages A mass customization strategy has three important competitive advantages. ➢ Managing customer relationships Mass customization requires…
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Consumers Driven By Customization Self-expression has increasingly become an important part of society and is best facilitated by the ability to personalize the products we invest in. Whether it is a pair of shoes or a brand new laptop, individuals want to customize the products they buy to best fit themselves. Almost everything we own has been tailored to our interests. It may be as simple as a desktop background, or as complex as the processor in a computer, nonetheless it adds a personal touch…
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Technological advances during the past decade have opened many new doors for the Textile and Apparel industries, especially in the area of rapid prototyping and related activities. When evaluating consumers’ dissatisfactions with apparel that has been mass-produced and is readily…
Companies like Dell adapted early to the mass customization trend. Land’s End followed fairly quickly and started the trend in the clothing retail business. Even with limited financial data, one can tell that online customization has benefited Land’s End. Customers are willing to pay for this benefit and even though numbers show that profit margins per item are equal, overall profit is higher due to higher prices. It is clear the customization effort by Land’s End has been successful due…