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Mass Customization

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Executive Summary
In this essay, the author will explain impact of the mass customization in the world nowadays. Some relevance with economy keys also will be explained to show the importance of mass customization. The author will also provide value chain of mobile phone manufacturing regarding mass customization. Furthermore, the essay will include some perspective and challenges that faced by Mass Customization Company, and also the New Product Development Stage, using Apparel Industry as example.

Introduction
In business nowadays, the trend of manufacturing is shifting from mass production (MP) concept into mass customization (MC) concept. Mass production is an “old” concept practiced and popularized by Henry Ford that produces a …show more content…

Figure 1 taken from (http://www.docstoc.com/docs/9186677/JIT-Kanban-Concept-in-TPS)

In Mass Customization Concept, the relationship with customer is one of the important point need to be consider. They should respond to customer demand and implementing it into work (planning, production, shipment) using system named CRM (Customer Relationship Management). Besides that, CAD (Computer Aided Design) also become one of the important techniques that applied by the company in order to transfer the needs of customer into the computer that will visualized them and sent them to manufacturing plant. * Company’s Competitive Advantage
Application of the MC into the manufacturing process of the company wills directly and indirectly creating competitive advantage for the company. Using “lean production” principal that focused on the reducing of the wastages (primarily is inventory cost). For example is Nissan company, by applying the JIT concept from “lean production”, they are successfully reduce their inventory cost (see figures 2) by 26% from 2008-2009 that worth 354.5 billion yen. (http://www.nissan-global.com/EN/IR/INSIDE/INSIDE-SP/FCF/page02.html)

Figure 2 taken from (http://www.nissan-global.com/EN/IR/INSIDE/INSIDE-SP/FCF/page02.html)

Besides that, using the MC as the core manufacture concept will lead them gaining the long term relationship with the customer by providing them with superb and unique value that cannot be provided by another company

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