Question

As we had discussed during the course, according to conventional theory, all viable manufacturing and service processes would lie on the diagonal line of the Product-Process Matrix and Service- Process Matrix.
Of particular interest to professionals in operations is the concept of Mass Customization which combines high volume with high variety. Dell did experiment with mass customization; however, their endeavors were not as successful as they had expected.

Answer the following questions relating to mass customization.
a) Why is it so difficult to achieve mass customization? What are the key success factors for
mass customization to be truly be effective?
b) Several firms have claimed varying degrees of success in implementing mass customization.HP and Nike are two examples that come to mind. Take one example (other than from the paint manufacturing industry) of a firm that attempted or claimed to adopt mass customization as a strategy. Describe briefly how they designed their process and how successful they were.
What went well and what did not? Are they really offering mass customization to their target
markets?

Answer 1

Answer a:

Mass customization refers to a company's ability to efficiently mass produce products that meet individual consumer wants and needs.

However, it is highly difficult to achieve mass customisation as the demand of every individual differs for some or the other aspect of product. Moreover, the feature that a particular customer may look for in the product may not be desired by the other customer. Different customer achieves different marginal utility for the product. Customers perceive value of the product on the basis of various parameters. For some customers, a product has a value when its price is least among the available substitute, for some customers, value of the product is its quality. Thus, the perception of customer differs for the value being derived from the consumption of the product. Hence mass customisation will not be able to satisfy the demand of all of the customers for whom the product has been manufactured.

Mass customisation will only be successful if the company produces a unique product in a mass production way by anticipating the needs of the customer and by finding the gap between what market is providing to the customer and what they desire. Fulfilling this gap will ensure the success for the company in its strategy of mass customisation.

Answer b:

Example of company implementing mass customisation successfully:

Atomic Skis is a company that produces outdoor sporting goods. As a part of its mass customisation strategy, company has introduced an online portal on which customers are allowed to make the choice and design for personal pair of skis by specifying colour, texture and design elements. This company then designs the sporting good in a mass customised way by taking sufficient number of orders. Company is highly successful in its strategy of mass customisation which is evident from its current market share which is higher than that of its competitors and it is still growing in its business as a result of its strategy of mass customisation.