Mass customization

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<ul><li> 1. As a Collaborative Engineering EffortBy Songlin Chen, Yue Wang, Mitchell M TsengPrepared by :12133 Chirag A. Thakur 12137 Dinesh Chand Devapujala12148 Manoj Sharma12156 Rheetam Mitra12166 Pappu Yadav 12182 Sarthak Rohatgi</li></ul> <p> 2. AbstractFrom a collaborative engineering perspective, masscustomization can be viewed as collaborative effortsbetween customers and manufacturers, who havedifferent sets of priorities. 3. Mass Customization - An Introduction It aims to deliver product and services that best meetcustomers needs with near mass production efficiency The paradigm shift to mass customization is made animperative for many companies to survive in anincreasingly diversified, fragmented and competitivemarket place Currently, the focus of research in mass customizationis shifting from its strategic viability to operationalfeasibility What?How? Why? 4. Mass Customization - An Introduction (cont.) Despite its advances in academia and industry, masscustomization continues to be challenged by critics One of the arguments against mass customization isthat it has limited novelty and restricted applicability Engineering Collaboration via Negotiation (ECN)paradigm (Lu 2003) promises great potential to tamemany of the challenges that are currently constrainingmany mass customization programs 5. Mass Customization Concept Future Shock by Toffler, 1970 - future manufacturingenabled by information technology would be able toprovide customized products in a large scale with little orno extra cost Pine et al.s Harvard Business Review article, 1993 theability to provide individually designed products andservices to every customer through high process agility,flexibility, and integration Hart 1995 et al. - Mass customization is a system that usesinformation technology, flexible processes, andorganizational structures to deliver a wide range ofproducts and services that meet specific needs ofindividual customers at a cost near that of mass-produceditems 6. Mass Customization vs.Mass Production*Mass Customization as a Collaborative Engineering Effort 7. Development of Mass Customization The paradigm shift to mass customization is mainly propelled by three forces : Market demand - the mass market is dead andsegmentation has progressed to the era of masscustomization Kotler(1989) Market competition - Product variety is exploding whileproduct life cycle is shortening Technological revolutions - Flexible manufacturingsystems allow manufacturers to quickly adapt to changeswithout incurring high penalty in terms of cost and leadtime 8. Mass Customization Economics Huffman (1998) theres a thin line between masscustomization and mass confusion Piller et al. (2004) with customers integrated intothe value creation process, companies gain access tomore accurate information about market demand andcan postpone some activities which add to cost pools In general, the key issue in mass customization froman economic perspective is how to leverage economiesof integration to compensate potential loss ofeconomies of scale 9. Conflicts in Mass Customization Conflicts in name : Mass Aggregation Customization one-of-a-kind Conflicts in operability :Customers demands are diverse andirregular which lead to highcomponent variety, large numbers ofsuppliers, and high administrativecomplexity 10. Collaborative EngineeringAs a Tool for Conflict Resolution Monplaisir and Salhieh (2002) collaborative engineering canbe viewed as a process in which people working in teamsaccording to engineering methodologies and supported bytechnical tools can share resources and knowledge to achievecommon goals Lu (2003) proposes Engineering Collaboration via Negotiation(ECN) as a new paradigm for collaborative engineering. ECN isdefined as a socio-technical decision making activity where ateam of stakeholders with different expertise and mixed motivesengage in interactive and joint conflict resolutions to co-construct consensual agreements of some engineering matter 11. Mass Customization - In Collaborative Engineering Perspective Conceptually, mass customization can be taken as a collaborative engineering activity, where customers and manufacturers with asymmetric information and different preferences engage in interactive and joint conflict resolutions to co-create an artefact How such collaboration can be carried out effectively and efficiently is an ideal research topic for collaborative engineering 12. Mass Customization - The Generic model* Spring et al. (2000) proposed a generic model ofproduct customization :*Adapted from Spring et al. 2002 13. Mass Customization- The Generic model* (cont.) Problem Solving : The product customization concepts and design schemes are determined and agreed between customers and manufacturers Design Specification :This stage determines thefirms performance onsome of the operationalobjectives 14. Mass Customization- The Generic model* (cont.) Transfer : Convert design specifications into actual products A limitation of this 3-stage generic model is that customer manufacturer interaction is confined to the problem solving stage only 15. Application scenarios Scenario I : Co-Innovation The manufacturer-centric view holds that innovations resultfrom intentional research while the user-centric (orcustomer-centric) view contents that many innovationsactually come from users Problem solving in mass customization is collaborative innature and designated as collaborative innovation (co-innovation)* Family Architecture (PFA) - As a framework for co-innovationPFA allows customers, product engineers, and processengineers can work under a unified framework with theirinterdependent relationships explicitly mapped out* Songlin Chen, Yue Wang, Mitchell M. Tseng 16. Application scenarios (contd.) Scenario II : Co-Configuration The stage where customers and manufacturers come to agreeupon the specifications of a specific product offering orcustomization type In a typical organization setting, co-configuration ofteninvolves customers and sales engineers (sometimes designengineers) Besidesproductconfiguration systems,personalrecommendation systems (Stolze and Strobel 2004) areproposed to facilitate customers in product configurationenabled by techniques like data mining, recommendationsystem 17. Application scenarios (contd.) Scenario III : Co-Production Co-production corresponds to the transfer stage (Springet al. 2000) by including material conversion, materialtransportation, shop floor control, procurement,inventory management etc. By sharing demand and supply information, supplychain partners can better utilize production resources inresponse to volatile market demand 18. Conclusion Mass customization defies the contradiction betweenmass and customization and aims to deliver productsand services that best meet individual customersneeds with near mass production efficiency It is important that all parties concerned can engage incollaboration with sufficient trust and only thencollaborative engineering can play a significant role The Economist: Mass Customization a Result of theThird Industrial Revolution 19. Application of Mass Customization 20. Application of Mass Customization 21. Application of Mass Customization 22. Application of Mass Customization 23. Application of Mass Customization 24. References :,Authorised=false.html?; 25. Thank you! </p>