Mass customisation Flashcards
What is mass customisation
Mass customisation is the process of mass producing goods before individually tailoring the finished product to meet a customer’s needs.
What is mass production
Mass production is when you produce mass amounts of the same unit
What is the push method of production
products that are manufactured and pushed into the market without waiting for a specific customer order. This approach assumes that there will be demand for the products once they are produced.
What is the pull method of production
A customer orders a product specifying specific features that they would like included in their product, then the process of manufacturing the product begins - Ex: Configuring a new car, Ordering a custom pair of shoes etc.
What does mass customisation require in order to be successful
Pull rather than push manufacturing
A product that can be mass produced
Customers that may have individual preferences
An ability to identify individual preferences
A flexible production line
What are some benefited of mass customisation
Ability to charge a higher price
Allows the business to experience economies of scale (Being able to reduce costs by increasing production)
Increased profit margins
Highly satisfied customers
Competitive advantage
Motivated workforce - Work will be more interesting, as there is a variety of work.
What are some cons of mass customisation
Heavy investment - Communications, training, Adaptable capital equipment
Reliance on suppliers
Getting it right first time ‘Cannot be messing up, as you’ll have to either refund the customer, or reproduce the product, which could lead to an effect on the brand image.
