Mass Customization and Manufacturing

Abstract

The concept of mass production was introduced in the 1800s and reached its full development in the 1920s. However, craft production, where artisans built products to a customer’s specifications continued catering to some select market niches. In the 1970s the competition intensified among producers and at the same time the variety of products proliferated. As a result, lean production which combines the advantages of craft and mass production, while avoiding the high cost of the former and the inflexibility of the latter, was born (Womack et al, 1990). In the 1990s, while some markets are reaching their saturation limits for products and customers are becoming more demanding, we see the rise of mass-customized production (Anderson, 1998; Davis, 1987; ICM Conferences Inc., 1996; Kotha, 1995; Lau, 1995; Preiss, 1995; Roos, 1995).

The concept of mass customization (MC) focuses on satisfying individual customer’s unique needs with the help of technologies such as agile manufacturing, flexible manufacturing systems, computer integrated manufacturing, and information and communication systems. In MC, the needs of an individual customer are translated into design, accordingly produced, and delivered to the customer. Such mass-customized production (MCP) systems are also referred to as one-of-a-kind production (OKP) systems. MC draws from other production strategies such as personalized production, focused job shop, agile manufacturing, and virtual enterprise (Elantora, 1992; Wortmann, 1992).

Changing global patterns of customer demands are beginning to give MC the competitive edge over lean production. For many companies, MC is becoming an inevitable means for survival in the market place. An observation of companies engaged in MC indicates that most of them have evolved over an extended period of time into this production scenario rather than by systematically implementing a well planned and well documented strategy. Lutron Controls is a good example of a company that entered into mass customization as a matter of survival. The company found that, by providing products according to each customer’s unique specifications, they could survive and grow in the competitive market of lighting controls (ICM Conferences Inc., 1996).

The practices of the following companies are described here: Andersen Windows; Bechtel; Black and Decker; Coca-Cola; Compaq; Custom Clothing Technology Corporation; GE Fanuc; GE; Gillette; Hewlett-Packard; IBM; Individual, Inc.; Lego; Levi-Strauss; Lutron Electronics Co.; Matsushita Bicycle Company; Mercedes Benz; Motorola; Nissan; Reebok; Space Electronics, Inc.; Telco, India; Toyota.