The four faces of mass customization ideas and advice. Mass customization a strategy in which a company attempts to market a product to a customers individual wants and needs while still producing the products at high level. Keywords mass customization, flexible manufacturing, customer integration, economies, cost and profit drivers abstract. Mass customization manufacturer the idea of a mass customization toolkit is to get access to an artifact representing the customers needs customer domain locus of need information manufacturer domain locus of solution information mass production advanced development design build prototypes test feedback s engineer to order. Moreover, the concept is also utilized in the development of marketing strategies for product and service lines and during the process of recognizing the target audience of a brand or business.
Innovative companies are finding ways to achieve personalization and production efficiency in their manufacturing processes. Gaining favor in both manufacturing and service industries, mass customization is a new system of management that relies on mass production of individually customized goods and services. Mass customization has become possible as the result of new technology see also flexible production, justintime management. This document describes software mass customization in three parts. Challenged by the recent economic crisis, the building and construction industry is currently seeking new orientation and strategies.
Mass customization and the doityourself supply chain. The mass production of standardized goods was the source of americas economic strength for generations and became the model for successful industries. Mass customization definition is the mass production of individually customized products, goods, and services. Mass customization definition gabler wirtschaftslexikon. Mass customization means to offer products or services which meet the demands of each individual customer, but which still can be produced and delivered with mass production efficiency. Pdf most companies can benefit from mass customization. Piller1,2 and dominik walcher1 1tum business school, technische universita. Franke and piller, 2004 mc mass customization with confgurable products and confgurators business see table 2 for a summary of the supplier business challenges which we discuss in this section. Mass customization is a growing trend for manufacturers, but requires a modern twist to execute correctly. May 23, 2019 mass customization is the process of delivering widemarket goods and services which are modified to satisfy a specific customers need.
Earlier, he worked at the mit sloan school of management and was an assistant professor of management at the tum business school 19992004. Today, that model is a major cause of the nations declining competitiveness. Mass customization is an important business concept, which numerous brands are adopting these days. The objective of mass customization is to deliver goods and services that meet individual customers need s with near mass production efficiency piller, 2003. Mass customization and personalization in southeast europe. Comprehensive collection of more than 50 recent papers on all aspects of mass customization and personalization. Mass customization information systems in business. Mass customization is the process of delivering widemarket goods and services which are modified to satisfy a specific customers need. This free exchange of product data concerning each item produced. Masscustomization article about masscustomization by. This is a curated list of books on mass customization and personalization that we believe to be helpful for learning about the topic. In order to address the implementation issues of mass customization, tseng and jiao, 2001 provide a working definition of mass customization which is very useful. The main purpose of such a strategy is to combine the low unit costs of a mass production process with the flexibility of individual customization.
As joe pine makes clear, innovative companies are embracing a new paradigm of managementmass customizationthat allows them to create greater variety and. Mass customization the production of personalized goods or services to meet individual consumers diverse needs at near mass production prices mass producers identify and exploit commonalities across customer populations, while mass customizers focus on identifying areas where customer needs diverge. Masscustomizationnewsletter kostenlos zu beziehen unter dieser wwwadresse. Mass customization is a useful marketing solution for acquiring and retaining consumers and building long term relationships with them. One of the main causes of toyotas recent problems was that it had been pursuing mass customization but had retained the structures and systems of continuousimprovement organizations. Today i define mass customization as the lowcost, highvolume, efficient production of individually customized offerings. Nov 05, 2012 mass customization economics huffman 1998 theres a thin line between mass customization and mass confusion piller et al. Whether shoes, chocolate or perfume more and more companies are offering their customers the option of customized products. Mass customization is a marketing and manufacturing. A craft it yourself future virginia san fratello and ronald rael 5. The next stage in the shift to mass customization b. The paper provides an integrated view of value creation in mass customizationbased production models. As joe pine makes clear, innovative companies are embracing a new paradigm of management mass customization that allows them to create greater variety and.
Mass customization as a solution for the service industry. The ability to differentiate products and markets is widely seen as one defining feature of a postmodern social formation. Mar 17, 2011 whether shoes, chocolate or perfume more and more companies are offering their customers the option of customized products. You must there are over 200,000 words in our free online dictionary, but you are looking for one thats only in the merriamwebster. Mp products have to be developed or adjusted to be suitable for mc. Piller and tseng 2010 mention this as the existence of a research gap in the existing base of literature on mass customization for the service industry. Here mass customisation is uncovered as a key strategy in helping to meet this challenge. In this article we start discussing 1 what is mass. Pdf the opportunities of mass customization are acknowledged as. Mass customization allows companies to profit from the heterogeneity of the market, says frank piller, professor of management at rwth aachen university in. Customers are able to enter their own specific wishes online and then. Mass customization is the future of retail benzinga. Custom made products are only available on orders these days because it is a highly difficult task to make customized products for all the segments of consumers.
Mass customization mc, within the marketing, manufacturing, and management contexts of an organization, is the use of flexible, computeraided manufacturing systems to produce custom outputs in a mass production environment. The key is to think of it as a process for aligning an organization with its customers needs. Mass customization an overview sciencedirect topics. The idea of mass customization is to turn customers heterogeneous needs into an opportunity to create. Alvin toffler first anticipated this capability in 1970 in future shock. Mass customization, in marketing, manufacturing, call centres and management, is the use of flexible computeraided manufacturing systems to produce custom output. Citeseerx document details isaac councill, lee giles, pradeep teregowda. The ability to differentiate products and markets is widely seen as one defining feature of a postmodern social. Cracking the code of mass customization most companies can benefit from mass customization. Cracking the code of mass customization semantic scholar.
Three strategic capabilities to implement mass customization frank piller, evalotte lindgens and frank steiner, rwth aachen university author contact. His research interests include mass customization, product configuration, reconfigurable manufacturing systems, and product architecture. 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 life cycle. Mass customization with configurable products and configurators. Handbook of research in mass customization and personalization 2 volumes. Mass customization is a business strategy that aims at satisfying an individual customers needs with near mass production efficiency. Kjeld nielsen is head of the mass customization research group. Pdf cracking the code of mass customization researchgate.
Mass customization mc, within the marketing, manufacturing, and management contexts of an organization, is the use of flexible, computeraided manufacturing systems to produce custom outputs in a. Creating a sustainable mass customization business model frank piller 4. From massive to mass customization and design democratization branko kolarevic and jose pinto duarte 2. Joseph pine ii is a cofounder of strategic horizons. This web site reports since 1997 on mass customization, personalization, customer integration, and open innovation strategies to cocreate value between companies and customers. May 25, 2017 mass customization is the future of retail. It is edited by frank piller, rwth aachen and mit smart customization group.
In this paper, we explore the characteristics of successful mass customization implementation at the example of the footwear industry. Mass customization and open innovation books, papers and. Mass customization information systems in business provides original and innovative research on it systems for. Mass customization and the corresponding approach of personalization have the potential to address competitive market requirements while improving a firms profitability. A configurable product is designed once and this design is used repetitively in the salesdelivery process to pro. Mass customization basically refers to the tailoring of products and services keeping in mind the specific needs and wants of the masses. Indeed, standardization became a preferred approach to achieve economies of scale and low costs for mass market penetration. The idea of mass customization is to turn customers heterogeneous needs into an opportunity to create value, challenging the one size fits all assumption of traditional mass production. That is, mass customization combines features of custom service, where a company makes a product upon demand from the customer, and mass production, where a company makes a large. Piller, frank t mass customization ein wettbewerbsstrategisches konzept im. With masscustomized sizing, the ability to present the product on a virtual model with similar or exact personal characteristics, body proportions and body type to the consumer is a crucial step in customer involvement. Our final thank, however, deserve the authors and contributors to this handbook. Mass customization economics huffman 1998 theres a thin line between mass customization and mass confusion piller et al. Challenges rising prices of raw material some customers still prefer to take some out a dealers lot directly even though 12 days is pretty impressive, customers still want lesser delivery time us laws has not yet allowed mass customization to be standard procedure in the us, laws allow the customer to call of a deal before the.
Pdf mass customization aims to deliver products and services that best meet individual customers needs with near mass production efficiency. Mass customization aims to deliver products and services that best meet individual customers needs with near mass production efficiency. Tseng piller the customer centric enterprise 2003 v2. Such systems combine the low unit costs of mass production processes with the flexibility of individual customization mass customization is the new frontier in business for both manufacturing and service industries. Software mass customization is a powerful business model as well as a powerful engineering model that enables software organizations to efficiently engineer customized variations of their software products. Piller has headed the technology and innovation management group at rwth aachen university since 2007. Mass customisation and personalisation in architecture and. Handbook of research in mass customization and personalization, edited by frank t. The objective of mass customization is to make highly customized products with the efficiency of mass production tseng, kjellberg, and lu 2003. Nov 14, 20 mass customization allows companies to profit from the heterogeneity of the market, says frank piller, professor of management at rwth aachen university in germany and codirector of the. Mass customisation and personalisation in architecture and construction poorang a. Why wouldnt people want to be treated as individual customers, with products tailored to their specific needs.
All books can be bought on amazon, if you use the affiliate links below you support the upkeep of this information portal. Mass customization refers to the development, production, marketing, and delivery of a customized product or service that offers various customizing options, enabling an individual to find exactly what they need at a reasonable price. Mass customization financial definition of mass customization. While flexible manufacturing technologies are often seen as the main enabler of mass customization, we argue that modern information technologies play a similar important. Indeed, standardization became a preferred approach to achieve economies of scale and low costs for massmarket penetration. Mass customization individual design for the masses. Scanias main characteristic is a modular product range and a value chain that is based on the production of the modules. Handbook of research in mass customization and personalization 2 volumes piller, frank t, tseng, mitchell on. Joseph pine, who made mass customization popular with his 1993 book. Alvin toffler first anticipated this capability in 1970 in. Product uniqueness as a driver of customer utility in mass. Mass customization definition of mass customization by. It was a real pleasure working with world scientific co.