History and overview of mass customization

History and overview of loudness customization survey Customization is an idea of bring sens toil economics to further more value in nodes satisfactory than before with plainly deliver maven unit which is unique. David J. Gardners decl atomic number 18 that he been percentage comprises apply skunk customization since the early 1980s before Stanly Davis bestselling book in 1987 written about mass customization more in high-level business schema for implementing mass customization to a manufacturing company.1 messiness Customization gather in become standard now in the 21st century. Lets have some quick view for the evolution of the un give care business paradigms over the timeIn above diagram, we stack see that in the 19th -20th century many manufacture are inventing their business with the method acting of craft convergenceion, mass issue and engineer-to- suppose technology by producing end mathematical harvest in profit and speed. When nearly the end of 20th centur y roughly manufacture try to revolute their businesses to mass customization paradigms which is more to distinct business paradigms by producing an product on demand and more in customers preference fit.21.2 Introduction to visual modality Customization spate Customization term was become well- hold outn since Joseph Pine published his book Market of One- Creating Customer Unique Value through Mass Customization. In this book he defined Mass Customization as producing, developing, marketing and delivering affordable low cost and high quality of goods and services that give customer nearly what they want. In separate words, the goal is forget end product that meet exactly what they want. 12 In Mass Customization business paradigms it must be dynamic or elastic affluent to bring home the bacon customer to introduction indispensable products themselves. Thus, it must be quick responsiveness to what customer leases, quantity allow, time of deliver and etc In roll to run cus tomer satisfaction the pricing cost and quality of products are important to be improved. 1In this 21st century the close popular industry that triumph implements the Mass Customization and made a great benefit providing economic price to customer is Dell. Dell has become the world leader for PC markets in carry on sales via Internet. In the way Dell settle sell its com seter is simply using the concept build-to-order which other words are for mass customization. They provide an organization of products and explain clearly to their customer what options the customer can select by their individual needs. The excellent job that Dell has done is build the on demand customize end product after customer proceed the order at their site and ship to customer less than 24hour. This is how Dell victor in their business strategy by addressd easy customized product across the enterprise and become the extended enterprise that the whole world kn induce. dismantle though there are many com panies in unlike kind of industry was success implementing the Mass Customization but there is in any case many of them fail. In the case study of business and economic research team with the title Failure of the Automobile Industry in Mass Customization Practices they mention that Mass Customization is not feasible for all companies or industries. Thus, in order for a company to success in implement Mass Customization strategy they need some signalize success factor require of strategy. 1 This testament further discuss later chapter in the subject Key Success Factor.1.3 Mass Customization (MC) toolkitMany companies in different kind of industries started to offer customer opportunity to customize their own products online. The companies provided a tissue-based mass customization (MC) toolkit that allow customer who prefer to have individualized products just like PCs and Laptops (Dell.com), T-Shirt (CustomInk.com), Sneakers (Nike.com), Kitchens (IKEA.com), Skis (Edelwiser.com) or Cars (Mini) to their specific preferences. MC toolkits defined as a set of user- jockstraply design tool which allow user to trial and stick of the design branch and it deliver simulated immediate feedback on the outcome of design idea. Once a satisfactory design are made and paid, the products spec will be transferred to manufacture drudgery system to be stird and delivered to the customer. Below have some of the existing web-based MC toolkit examples from different kind of industriesFigure 1.0 An Overview of MC toolkit examples from (www.mass-customization.de/mc07/)Mass Production Vs Mass Customization2.1 Characteristics of Mass ProductionMass production development functioning in to produce large amounts of standardized products in the arrangement of assembly lines.4Typically use large production lines moving tracks or conveyor belts moving down the object of various workers.4 usually mass production is suitable for large and semi-homogeneous consumer groups. 4Mass prod uction is a large-scale capital-intensive production process Although low labor costs and production efficiency, but through large-scale production machinery itself requires a lot of money and skilled labor to install equipment in large quantities.4AdvantagesReduce the possibility of piece error, improve product quality, dilute labor costs and reduce non-productive work. 4DisadvantagesAssembly line products are intemperate to change once implemented and hard time of establishment. 4Figure 2.0 Ford factory, number one moving assembly line, 1913.2.2 Characteristic of Mass CustomizationAccording www.madeforone.com, declare that mass customization enable customers to determine the exact product or service specification, and have the product or the price available to them closer to a general public for such services have replaced. 4Mass customization often rely on production output, is customized for each user the use of flexible computer-aided manufacturing system. 4Mass customized products in minimizing the cost of using the build-to-order method, in which a labor movement is not constructed until the receipt of the order, is an important factor. 4The product is built to meet the needs of individual customers. 4It is a parcel-based product configuration that allows it to add / change a core product features. 4In many cases, if a company offers individual products, the products are not made separately, but the emergence of mass production and variants or become personalized. 4The interface or configure the system, is one of the important part that mediates between consumers and manufacturers as a key success of mass customization without a friendly-user interface and ease of use, the company will be difficult to be successful. 43.0 Benefits and Drawbacks of Mass Customization (MC)3.1 Benefits of MCSince the increase in number and variety of custom device by increasing the efficiency of reducing low-profit.Mass customization is a way to improve profits and r educe costs strategy of species.Whether your company is looking for incremental improvements or take your business next level, your company can not thrive as a custom, if the number and / or types are increasing.Mass customization is an enterprise-wide business sit down to improve efficiency across the enterprise, increase efficiency, round your sales channels.Accelerate collaborative mass customization, the correct implementation of, and created a real excitement.3.1.1 Benefit in the perspective of manufactureMay help to come across a competitive advantageLower costs (storage costs, costs related to Product is not for sale)Higher income the amount of profit agency manufacturers are apparent to fall intoaccount, and customers willing to pay customized products at higher prices.Build customer loyaltyBetter needs analysis customers through design their own products to provide a number of education about their preferences.Manufacturers and less endangered by demand changes in pr eferences (market turmoil)3.1.2 Benefit in the perspective of customerProducts more suit to customer preferencesGreater opportunity to evaluate alternativesWhether it is possible to buy at any time and any place (In the case of purchase through the Internet) thingmabob of customers3.2 Drawbacks of MC3.2.1 Drawbacks in the perspective of manufactureAs for the management of high demand and production systems.Sometimes costly investment in IT, a flexible manufacturing system and the necessary training.The risk of failure in addition to mass customization success stories, there are some cases of failure are too many.3.2.1 Drawbacks in the perspective of customerTakes longer deliver periodCannot experience the final product Before buyingMore complex buying processUsually anonymous purchase4.0 From Mass Production to Mass CustomizationIn according to the journal Cracking the Code of Mass Customization the researcher has come out with the factors that needed in order to emerge from Mass Production to Mass Customization. The factors are Three Fundamental Capabilities ( root word set development, robust process design and choice navigation) and also with several approaches and tool to help companies to develop those cogency.24.1 Three Capabilities Required (Fundamental Capabilities)4.1.1 Solution Space DevelopmentIdentify the product attribute differences along these customers. 2Innovation Toolkit This software enabling customers to the large pool into a unique product change their preferences, so that each customer stressed that the demand may not be happy.Virtual Concept Testing An effective through the creation of virtual prototyping and evaluation of submitted scores differentiated products approach the concept of potential customers.Customer aim Intelligence A tool for continuous collection of customer data transactions, behavior or experience and analyze information to determine customer preferences.4.1.2 hardy Process radiation patternReuse or reorganizat ion and value chain of existing resources to meet the different demands of customers streaming 2 supple automation Automation is not fixed or rigid, and can handle custom tangible or intangible goodsProcess modularity Split into reusable or re-performance of the faculty differentiated customer value chain of existing organizations and resources.Adaptive human capital Developing the management and staff who can handle the new and ambiguous tasks.4.1.3 Choice pilotageSupport customers in defining their own solutions, while minimizing the burden of complexity and choice 2Assortment matching Software solution to match an existing space charactenstics (is a set of options) with the customer demand model, and then make product recommendationsFast-cycle, trial-and-error learning Is a way to enable customers to build their demand model and test the interaction between the model and the available solutions to matchEmbedded configuration Products that understand how they should adapt to the customers and then reconfigure itself accordingly4.2 The Mass Production-Mass Customization ContinuumIn order for a business from mass production to mass customization they must go through the process of building the organizational capabilities (solution space development, robust process design and choice navigation). During the process company might need to improve all tierce capabilities at the corresponding time. Dell, has done developed their personal organizational capability toward mass customization that suitable for them and bring ford great result of sales and customer satisfactions. 2Figure 3.0 Dell define it solution space and build a very robust processes, choice navigation still improving.5.0 Key Success FactorsMass customization is that manufacturers able to produce customize product on demand, large-scale and tear down costs.But how can we do this?Most experts believe that mass customization will success depends on the following factors 15.1 Modular Product Design Each module retains its specific processes (or work) business authority.Without this, personalized products will be very difficult, time consuming, the terms of the slow and very expensive.In modular product design, product designs are under some module or process so that able to produce any type of customization. 1RequirementsWhen necessary preparatory work (which requires an effective supply network), skilled and qualified staff of highly educated investment.High standardization of componentsFor organizational structure, improve the coordination between modulesBenefitsStandard components maximize in number of forms use in all products.Shorten production time because all the modules can be done simultaneously (and not in a sequence) to love, and therefore greatly reduce the time needed for the production.Easy to diagnose production problems (quality, defective products and etc.), resulting in a special isolation control potential quality issues5.2 Flexible Manufacturing ProcessMas s Customization produces a variety of different products.This requires a high degree of flexibility in manufacturing systems.This factor reflects the capacity to adapt to the differences in the products as a result of the lead time, cost in changing the system and small sum of ordered products. Usually if a company is to effectively organize its modular product design, flexible manufacturing system, so it provides the type and characteristics of time reducing costs. 15.3 Sophisticated Order ManagementMass customization is based on deep reasonableness of customer needs.Because individual needs are very different, order management system is critical to enhance the manufacturer and customer relationships.It (the system) to provide such a database, each client works open a wide range of profiles, and manage the large number of orders for many customers and clients the breadth, and through tracking, and allows easy access to the side of each order in anytime. 1RequirementsClose the rel ationship with customersHigh system capacity to handle large amounts of information (databases, transactions, etc.)Along the value chain (through the order management system) is highly integrated a high degree of customer participation in the have in minds of product configuration, marketing, sales, manufacturing, distribution, customer requirements also need to know accurate information.An order management system, a typical example is Dell Computer.The site (www.dell.com) allows customers to interact directly with the companies presented their demands.Customers from a number of options, select with the products, just come through on the screen to order these products.As the inventory and manufacturing, integrating all the departments Dell sales, marketing, finance, billing, logistics, such as through the website, order processing, all of these sectors at the same time, the result is that customers can immediately know, in a very fast and accurately allconditions of purchase.5.4 I ntegrated information systemInformation systems role in mass customization is the key to success.The main features of mass customization the uncertainty of the requirements plus the requirements of flexible manufacturing, victimize tar times, flexibility and rapid response capacity accurately, for an efficient information system to ensure that the information mobile phone is smooth and accuratebetween customers and manufacturers, has become the companys segments.In order to manage this small to minute, and more to fourfold decision- do, decision support systems, integration of all participants in the organization of information, as well as with customers and manufacturers is essential. 15.5 Postponement of assemblyThe uncertainty of demand for mass customization is a production operating costs are a major obstacle.The system run-time requirements than low production capacity point of view is a fear of sleep, because the manufacturers have closed down days operating on fixed ass ets, inventory management costs, salaries of maintenance work, heavy, etc., but these costs can be eliminated if the company solutions to land demand for delay operations.However, it can still ensure that the operation will restart quickly, if demand suddenly rose.A solution to address this challenge is generated by externalities.For example, Nike does not produce itself and its partners in Asia, responsible for the production through the contract.Nikes investment in assembly, material inventory of machines, workers, and factory management is essentially zero.So, when demand falls, Nike just to adjust the contract delivery schedule.In this way, the burden of fixed costs is no longer Nike.For some products, its packaging division is the foundation, the company can source packaging steps to reduce the uncertainty of demand fluctuations. 16.0 The Evolution to Mass CustomizationMass ProductionCraft ProductionMass CustomizationEngineer-to-OrderCraftsmanshipTimeeighteenth century 21st c entury6.1 CraftsmanshipCraftsmanship is the oldest thousands of years the only methods of production.It is based on a few handmade commodities and delivery of services in a small workshop manual production.At the end of 18th century and in the beginning of 19th century there was a uncovering and started move in to craft production.6.2 Craft ProductionCraft production or (One-off production- individual article or a large-scale production prototype) is the process of manufacturing by hand with or without aid of tools. 5 Therefore, hand tools begin to display by machine and the craftsmanship productions goods and services important reduce from time extend though process in moving to craft production.In term of craft production it refers to parts of the handmade production is automated, but through human factors (skills, experiences and traditions) remains is significant. Craft production was move in at 19th century.6.3 Mass ProductionMass production(also called liquify production,repe titive hang up production,serial publication production, orserial production)is production of large number of standardized products, including in particular on the assembly line.6 In different way of production goods and delivery services simultaneously with manufacturing machine is mass production.In craft production one shop craftsmen busy get parts and assembly together, but in mass production one or more duplicate each worker using the same tools to perform the same consistent product flow or near the action-related tasks.6 In the starting of 20th century Mass Production was being a standards for many companies. So, what is the improvement from craft production to mass production then? See below advantages and disadvantages of mass production.AdvantagesShorter time to production (exact tool or parts always on hand cut short assembling time) 6Human error are reduce cause mostly process carry by machinery. 6Reduction labour cost and increase production speed per unit carry out by machinery in large-scale. 6DisadvantagesInflexible or difficult to change the production line and takes long time to implement it. 6Difficult to satisfy individual taste by the similar production.66.4 Engineer-to-OrderEngineer to order (ETO) is a manufacturing concept, the finished product built to unique customer specifications. universal Assembly and the raw materials inventory, but may not go to the product assembly, until the receipt of customer orders and part of the design.ETO products may require a project number, a unique set of materials, as well as routes, and usually a very long time and complexity.Active participation and engineers throughout the design process of ordering products. 7ETO same time may refers to Build-to-Order (BTO) which is also a production approach of waiting the order confirm and build it. BTO and ETO are the approach that is most nearer to Mass Customization approach because it waited customer to confirm their order that they choose and produce it. In the middle of 20th century ETO was being implemented.6.5 Mass CustomizationMass Customization is an approach that combination with mass production, but is delivering customize product to individual. According to Frank Piller et al said in the business of consumer-focused line of creative strategy, mass customization can be seen as first elaborated the concept, with more than twenty years (the term was created in 1987, Stan Davis) history.8Mass customization, it seems becoming the 21st-century standards.It offering customize product that meet individual demands and still remain the efficiency of mass production. To achieve these efficiency requirements, mass customization system is defined by a fixed solution space in order to stabilize but still flexible, the characteristics of the reaction process.8Therefore, the costs associated with mass customization should allow for a price level that does not mean the market as a switch.The solution is the use of space, who is in the proce ss of the manufacturers comprehensive definition of value creation, configuration or modify the options in a given choice of their respective solutions.If you do not deeply involve in the customer, the manufacturer will not be able to fully demand the needs of each individual product.Special tools package should enable customers to perform their tasks in this configuration. 8From the evolution from craftsmanship to mass customization, we can see how business flow comes through started focus on individual, then to many consumers and lastly come back a meet to focus back on individual needs to gain competitive advantages.Mass customization can be categories into three type (Sung Park) saidDigital Front End/Digital Back End Described it as like the Amazon based on your interest in a fully digital fashion unique pages. 8Digital Front End/ fleshly Customization and Assembly Most businesses will fall into this bucket of mass customization.You design Web-based CAD interface stuff, and som e of its factories for the production of improved traditional manufacturing process.E.g. NikeID, fashion Playtes, or Paragon Lake. 8Sensor based Front End/CAD-CAM Back End This is a relatively passive experience, the best description of the Bronte sisters.In their case the sensor, so that your mouth model, and automated equipment (three-dimensional printer) produces a scanned copy of the physical.There is little human intervention or interference. 87.0 The Effects in Mass CustomizationThrough the research of Mass Customization (MC), I found a very good journal that support MC cause that generate value to customer which title The I Design It Myself Effect in Mass Customization.Many companies has offer their website that enable customer to customize their own individual customize product which manufacture can produce once confirm order. To this matter, MC toolkits was the significant and roles to gain competitive advantages to generate economic value to customer. There were four fact ors for MC toolkits needed to achieve 3 mouthful fits achieved by self design products (should be as high as possible) 3Design effort which is refers to cost (should be as low as possible) 3The consciousness of being the creator of the product design a skin perceptiveness of accomplishment from the process of self designing in subject value of the product. 3Willingness to pay when the feeling of accomplishment of the self-design are high then the WTP will be high also and generate value to the creator. 3Above factors are important for companies to develop MC toolkits generate values to the consumer. Therefore, the user-friendly interface, innovative and design of MC toolkits should be good enough to gain customer satisfaction in term of the effects that mention above.8.0 Critical Evaluations8.1 Why I choose Mass Customization for FYP project?For explain question above, first we need to know now normally most people can sell things online within just 15min or less than 30min, then they can create a website and start their businesses from (ebay, blog and liberate siteetc). So, what is my purpose to implement Mass Customization approach in my FYP project? It is to gain competitive advantages and innovative of web design to attract people come to my site.As now ecommerce have been commonly heard and become a traditional way for businesses online. So, what will makes it different? Lets see the answer belowPicture 1 This is the traditional way of T-shirt selling online from (www.t-shirts.com)Picture 2 This is the site that implemented mass customization method that selling T-shirt by customer own design from (www.rainbowsports.com)Now, we can clearly see the answer of implementation of mass customization in online business is important and some strategies and factors to success in mass customization as I have discussed above at Chapter 3.0, 4.0, 5.0 and 7.0.8.2 What is the way to create Mass Customization Site?Well, there is no fix way or range of making a mass c ustomization site as long as we can develop the MC toolkits. As we study in IT in TARC College we learn a lot of technology, software tools and program languages that can help us to design and come out with our own toolkits by the range our knowledge and effort we put in.I have decide some several ways to create a T-shirt Customization tools with using Asp.net (visual basic code) for the Web pages, Oracle database (Oracle Express 10g free version), Silverlight or Adobe Flash CS3 Professional (Flash which use to create the MC toolkits for T-shirt customization).8.3 Does MC make your FYP project applicable to real business?Yes, it will be possible if my project been successfully meeting those requirements in the key success factors and achieved the effects that mention above chapter 7.0 and 5.0. Thus, also include with the advanced of programming code and tools being used to develop a standard website that can probably compete against other companies website.MC website can be in thre e type of categories that mentions at the 6.5 mass customization to make our site in specific area focus on customer. Thus, to create a uniqueness MC website we need to refer to 4.1 Three Fundamental Capability that needs to be continuously improved for goods and services provided using MC toolkits.8.4 Will your complete your FYP with what you have plan?For this matter, it will be possible done but in term of time given maybe is a bit rush and hard to complete fully with myself alone. So, this is where the challenge I should face and to wisely spending the time in researching coding and designing user-interface. Therefore, I may look forward to my friend in other courses to help in different area such as flash in action script 3.0 and designing.Lastly, I hope this project would be successful completed in time and in future work it may possible for me to look forward 3D customization in web design.Harvard Reference1 Pollard, D. and Shirley, C. and Brian, L. 2008. Journal of Business Economics Research Strategies For Mass Customization. Vol. 6, No.7, pp.77-862 Salvador, F. and Holan, P.M. and Piller, F. 2009. Cracking the Code of Mass Customization. MIT SLOAN Management Review. Vol.50, No.3, pp.71-783 Franke, N. and Schreier, M. and Kaiser, U. 2010. The I Designed It Myself Effect in Mass Customization. Management Science. Vol. 56, No. 1, pp.125-140Online/ Others Resources4 Seaman, K. 2007. Mass Production versus Mass Customization. Viewed on 24 October 2010. Available from 5 Wikipedia, 2010. Craft Production. Viewed on 30 October 2010. Available from 6 Wikipedia, 2010. Mass Production. Viewed on 30 October 2010. Available from 7 BigMachines, 2010. Engineer-to-Order (ETO). Viewed on 30 October 2010. Available from 8 P2P Foundation Wiki, 2009. Mass Customization. Viewed on 30 October 2010. Available from 9 David J. Gardner. 2009. Some Benefits of Mass Customization. Viewed on 30 October 2010. Available from