Mass Customization
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Mass Customization Mitchell M. Tseng1,2, Yue Wang3 and Roger J. Jiao4 1 Feng Chia University, Taichung, Taiwan 2 The Hong Kong University of Science and Technology, Hong Kong, China 3 Hang Seng Management College, Hong Kong, China 4 The George M. Woodruff School of Mechanical Engineering, Georgia Institute of Technology, Atlanta, GA, USA
Synonyms Personalization
Definition Mass customization aims to deliver products and services that best meet individual customers’ needs with near mass production efficiency (Tseng et al. 1996). In this paradigm, it is critical to provide individually designed products and services by considering every customer as an individual through process agility, flexibility, and integration of product lifecycle. A brief summary of the basic properties that make mass customization unique is illustrated in Table 1.
Mass customization implies a shift of design and production paradigm from “made-to-stock” to “made-to-order.” It challenges the conventional product development and supply chain management, calling for adopting mass production approaches to accommodate “high-variety-lowvolume” production. In order to support the paradigm shift derived by the customization process, the enterprise should reconsider the entire value chain to leverage upon three pillars: time-tomarket, variety, and economy of scale. Mass customization was first coined by Stan Davis in Future Perfect (Davis 1987) and later developed by Pine II (1993). It embarks a paradigm shift for the enterprise to offer products and services best catering to individual customer’s needs whereas keeping near-mass production efficiency (Tseng et al. 1996). The key feature of mass customization is the capability to integrate the product varieties derived from the individual customer’s needs with repetition of modularity and the efficiency of mass production, so that the products are affordable due to low product cost achieved by the scale of economy in production. Traditional mass production leverages upon economies of scale that emphasizes reducing the average per unit cost of the products and services by increasing the scale of production for a single product type. The key of mass production efficiency is to produce and deliver more of the same design of a given product or service by defraying the fixed cost with higher production
# CIRP 2017 The International Academy for Production Engineering et al. (eds.), CIRP Encyclopedia of Production Engineering, DOI 10.1007/978-3-642-35950-7_16701-3
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Mass Customization
Mass Customization, Table 1 Properties of mass customization (Adapted from Chen et al. 2009) Goal Economics Focus Product Key features
Organization Customer involvement
Mass customization (MC) Delivering affordable goods and services with enough variety and customization that everyone finds nearly exactly what they want Economies of scope and customer integration Variety and customization through flexibility and responsiveness Product family and standardized modules assembled based on customer needs Unpredictable demand pattern H
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