...Mass customization, in marketing, manufacturing, and management, is the use of flexible computer-aided manufacturing systems to produce custom output. Those systems combine the low unit costs of mass production processes with the flexibility of individual customization. The concept of mass customization is attributed to Stan Davis in Future Perfect[1] and was defined by Tseng and Jiao (2001, p. 685) as "producing goods and services to meet individual customer's needs with near mass production efficiency". Kaplan and Haenlein (2006, pp. 168–182) concurred, calling it "a strategy that creates value by some form of company-customer interaction at the fabrication / assembly stage of the operations level to create customized products with production cost and monetary price similar to those of mass-produced products". Just as mass production was crucial to manufacturing in the 20th century, mass customization (MC) will be the key to economic growth in the 21st century. MC is the ability to design and manufacture customized products tailored to meet a customers needs at mass production costs and speed (see Figure 1). While organizations continue to outsource for economical reasons, managing the interfaces between suppliers has become expensive and inefficient. By dispersing engineering and production geographically, manufacturers have increased the number of places their knowledge interfaces and multi-tier supply chains can breakdown. This amasses hidden costs, increases lead times...
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...J. Service Science & Management, 2009, 2: 255-264 doi:10.4236/jssm.2009.24030 Published Online December 2009 (www.SciRP.org/journal/jssm) 255 Service System Decoupling for Mass Customization: A Case Study in Catering Services Jue CHEN1, Yunhong HAO2 1 The tourism school, Zhejiang Gongshang University, Hangzhou, China; 2School of Business Administration, Zhejiang Gongshang University, Hangzhou, China. Email: chenjue8@yahoo.com Received April 17, 2009; revised June 19, 2009; accepted July 28, 2009. ABSTRACT The paper examines the key issues on system decoupling in service operations of mass customization by conducting a case study in catering services. It firstly justifies the effectiveness of applying concept of mass customization into service system decoupling to deal with the operation dilemma and then reveals the nature of decoupling decisions for mass customization purpose after discussions on the importance of modularization and the role of technologies including IT in the decoupling process. Based on these analyses, a Judgment-Matrix-based model on how to make the decoupling decisions in balancing the multiple operation objectives is then proposed and further research directions are finally suggested. Keywords: Mass Customization, System Decoupling, Customer Contact, Modularization 1. Introduction System decoupling is an effective approach to cope with the influences caused by customer contact by dividing the service system into two components: back-stage...
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...1. Stragetic Marketing In its strategic role, marketing focuses on business’s intentions in a market and the means and timing of realizing those intentions. The strategic role of marketing is quite different from marketing management, which deals with developing, implementing, and directing programs to achieve designated intentions 1.1 Concept of strategic marketing As shown above, the marketing function plays at different levels in the organization. At the corporate level, marketing inputs (competitive analysis, market dynamics, and environmental shifts) are essential for formulating a corporate strategic plan. Marketing represents the boundary between the marketplace and the company, and knowledge of current and emerging happenings in the marketplace are extremely important in any strategic planning exercises. At the other end of the scale, marketing management deals with the formulation and implementation of marketing programs to support the perspectives of strategic marketing, referring to marketing strategy of a product/market. This time, marketing strategy is developed at the business unit level. |Marketing’s Role in the Organization | |Organizational level |Role of Marketing |Formal Name | |Corporate |Provide customer and competitive...
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...Timbuk2: Outsourcing, Offshoring and Mass Customization Introduction: Timbuk2 was founded in 1989 by Rob Honeycutt, a San Francisco bike messenger. Honeycutt wanted to develop a messenger bag that was rugged enough for everyday wear and tear, but chic enough to set a fashion trend. The company founded its success based on its lean manufacturing and mass customization principles. With many of the American companies now outsourcing their manufacturing processes to China, it became hard for Timbuk2 executives to ignore the labor cost benefits that Chinese manufacturing would provide. Dealing with different channels (wholesale/retailers, e-commerce, etc), Timbuk2 also had to find a way to improve their mass customization processes and determine if it was feasible for them to offer their clients more choices (colors, sizes, patterns, etc). In this case, Timbuk2 has two very distinct problems. The first problem is concerned with Mass Customization of their products. Should the company offer its clients more variety of choices when customizing their very own bags? The second problem is concerned with whether or not Timbuk2 outsource its manufacturing production to China due to it’s significantly low labor costs? Analysis: Mass Customization: Timbuk2 sells its products through different channels, such as the traditional domestic wholesaler and retailers, e-commerce, corporate and international channels. The most profitable channel for the company is the e-commerce channel...
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...MAJOR ISSUES AND TRENDS IN OPERATIONS MANAGEMENT I. COMPUTER AIDED MANUFACTURING/COMPUTER AIDED DESIGN * It is the use of computer software to control machine tools and related machinery in the manufacturing of workpieces. * It also refers to the use of a computer to assist in all operations of a manufacturing plant, including planning, management, transportation and storage. * Its primary purpose is to create a faster production process and components and tooling with more precise dimensions and material consistency, which in some cases, uses only the required amount of raw material (thus minimizing waste), while simultaneously reducing energy consumption. * It is a subsequent computer-aided process after computer-aided design (CAD) and sometimes computer-aided engineering (CAE), as the model generated in CAD and verified in CAE can be input into CAM software, which then controls the machine tool CAD / Computer-Aided Design Computer-aided design (CAD) is the use of computer programs to create two- or three-dimensional (2D or 3D) graphical representations of physical objects. CAD software may be specialized for specific applications. CAD is widely used for computer animation and special effects in movies, advertising, and other applications where the graphic design itself is the finished product. CAD is also used to design physical products in a wide range of industries, where the software performs calculations for determining an optimum shape...
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... The BMW customization program “Dream It.Build It.Drive It.” for X3 series compact SUV model had driven sales across North America. Joseph Wierda, BMW product manager was contemplating using the same marketing strategy to drive sales across all BMW product lines. He was particularly interested in using this customization strategy for flagship brand X5 and a new model X4 launching in 2015. The major marketing challenges to implement this customized program were as below: * Regional and Global Manufacturing Strategy: In North America compared to Europe, customers wanted immediate delivery. Purchase of a car was a major decision and that meant there was a high emotional value attached to the purchase. Customers wanted to experience thrill and excitement attached to car purchase. To solve the problem of immediate delivery for North America and to maintain customer interest during the sales process, BMW team made significant adjustments at the plant, in BMW’s supply chain and IT systems. For X3 series, they even shifted their assembly line from Austria to South Carolina to reduce delivery time across continents. BMW‘s plant in South Carolina manufactured six different models including X5 and X4. For other models which are not manufactured in North America immediate delivery in few weeks would be difficult to achieve. As models manufactured outside North America meant increased shipping time between continents. So, the concept of “Dream It.Build It.Drive It.” Mass cutomization...
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...Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.2 (6), June (2013) Online available at indianresearchjournals.com FACTORS AFFECTING PURCHASE DECISION OF CARPENTERS FOR LAMINATES UMA SHANKAR SINGH*; SRITAM KUMAR PADHI** *PH.D. (FULL TIME RESEARCH SCHOLAR) INSTITUTE OF BUSINESS AND COMPUTER STUDIES SIKSHA „O‟ ANUSANDHAN UNIVERSITY BHUBANESWAR, ODISHA, INDIA **MBA INSTITUTE OF BUSINESS AND COMPUTER STUDIES SIKSHA „O‟ ANUSANDHAN UNIVERSITY BHUBANESWAR, ODISHA, INDIA _____________________________________________________________________________________ ABSTRACT The main reason to conduct this study is to find out the factors which compel or attract a carpenter to choose a laminate or veneer for his clients. This project report is revealing the state of mind of the carpenters with the changing environment. How the carpenters reacted with the change in customer preference and with the introduction of a large number of companies dealing with laminates and veneers. To know this a survey conducted using a structured questionnaire containing the items which helped in obtaining the desired information from the carpenters. Carpenters were approached targeted the capital city Bhubaneswar of Odisha state in India The aim and motive of carrying this project is to know about the brand awareness and consumer preference for laminates. The objective of this research is to find out the foremost factors...
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...future, and HR’s desired and actual role in addressing them. What we found was that while HR leaders generally feel their ideal role is one of broad leadership, their assessment of the current role often is far less than that. Our research at the Center for Effective Organizations was conducted with a consortium of 11 large companies: Citrix Systems Inc.; Electronic Arts Inc.; Gap Inc.; Lockheed Martin Corp.; Mattel Inc.; Rockwell Automation; Royal Bank of Canada; Sony Pictures Entertainment; Unilever; UPS Inc.; and The Walt Disney Co. Twenty to 30 HR professionals within each company participated in the consortium. We examined the trends of globalization, generational diversity, sustainability, social media, personal technology, mass customization, open innovation, big data and gamification. Beyond Tradition: Reach Out, Venture Out, Seek Out, Break Out Our findings suggest that human resources can make great progress by simply allocating more time, budget and expertise to the emerging trends that have the greatest potential effect on organizations. However, at a larger level, lasting change will require fundamentally rethinking how the HR profession and the HR function operate. This includes: Reaching out: By infusing talent from other disciplines such as marketing, finance, logistics and engineering, and bringing those disciplines to bear on HR issues such as the employment value proposition, options-based leadership development, optimized talent supply chains...
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...Running Head: Hewlett-Packard Supply Chain 1 DeskJet Printer Inventory Ernesto Gutierrez 5850 Logistics/Case 2 Webster University Stephen Lee 27 September 2014 Hewlett-Packard Supply Chain 2 Abstract In 1998 Hewlett Packard introduce one of the first printer products to gain sales over 600,000 units in 1990. With over $400 million in sales, Hewlett Packard had gain a foot hold on this market and was growing steadily at a rapid rate. Unfortunately, inventory growth had tracked sales growth closely. Already HP’s distribution centers were having issues maintaining inventory levels and were not able to maintain satisfactory product availability. Can a new logistics design be used to control this issue, will a delayed differentiation help with the issues faced at HP, When is it the right time for suppliers to be involved with new product development process. This paper will attempt to answer these questions to better understand the operations at HP and their supply chain. Hewlett-Packard Supply Chain 3 DeskJet Printer Inventory The inventory problems in the European distribution...
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...Overview The objective of this assignment is to go beyond theory to provide you with the necessary tools to use the marketing concepts presented during the week. After completing the assignment you would have applied the concepts and the metrics to specific situations. In particular, this assignment will give you an in-depth understanding of: • Market Share (Chapter # 3) • Value creation (Chapter # 4) • Market Segmentation (Chapter # 5) Rubric • Multiple choice questions that require students to show their work will receive 10 points for selecting the correct answer and (0 – 10) for showing the correct calculations, for a maximum total score of 20 points for each question. • Open ended question will receive (0- 20) points based on the clarity of the answer and the relevance of connections between the case study and the concepts covered in the course. Instructions 1. Read the mini-case. 2. Answer the multiple choice questions by selecting the correct answer. 3. Show all your work when requested. 4. Submit your assignment by the end of week 1. Case 1: The Prius Toyota recently introduced a hybrid automobile named Prius. Since its introduction, this offering has achieved a 1.2% market share in this market. Toyota has conducted research in an effort to assess its opportunity for market share development. The table below indicates consumers’ current response at each step along the share development path for Toyota’s Prius hybrid...
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...Living in Dell Time 1. Identify and describe all the different types or forms of innovation exemplified in this article by explaining with data and facts from the case (10 points). First they are using a production innovation the just-in-time model. (It is a strategy for inventory management in which raw materials and components are delivered from the vendor or supplier immediately before they are needed in the manufacturing process.) Inventory has been a form of security but this kind of security is very expensive because computer parts are fast moving goods, and if your stock is full of these goods you will lose a lot of money. Kevin Rollins the CEO of Dell said, “inventory is like fish, the longer you keep it the faster it deteriorates.” Eleven years ago Dell carried 20 to 25 day of inventory in their warehouses and today they don’t have a warehouse. But if it fails, its manufacturing operations will crash within a matter of hours. But they also said that if you have your stock full of components, always you will have a lot of the wrong stuff and none of the right stuff. Many companies are not sure if it´s good of running so lean in an uncertain world, because you never safe for terrorist attacks or natural disasters. Another innovation is when they miss a forecast and they see they are running out of 15-inch flat screens they make for example a one week special of 17-inch screens in that time they sell it cheaper and so they lead the customer what they should buy...
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...customer order penetration point. From a research perspective, we classify the methods that are employed in the management of these chains, based on whether supply and/or demand are flexible or fixed. Interestingly, our taxonomy highlights a very critical research area at which both supply and demand are flexible, thus manageable. Simultaneous management of supply and demand chains sets the stage for mass customization which is concerned with meeting the needs of an individualized customer market. Simultaneous and real-time management of supply and demand chains set the stage for real-time mass customization (e.g., wherein a tailor first laser scans an individual’s upper torso and then delivers a uniquely fitted jacket within a reasonable period, while the individual is waiting). The benefits of real-time mass customization can not be over-stated as products and services become indistinguishable and are co-produced in real-time, resulting in an overwhelming economic advantage. Keywords: Value chain, supply chain, demand chain, taxonomy, real-time management, mass customization, information and decision technologies,...
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...1. How can design for logistic concepts be used to control logistics costs and make the supply chain more efficient? Design for logistics is a series of concepts in the field of supply chain management involving product and design approaches that help control logistics cost and increase customer service levels. The concepts include the three key components, Economic, Packing and Transportation, Concurrent and Parallel Processing, and Standardization. EPT is the most obvious involved designing products so that they can be efficiently packed and stored. When transport systems are efficient, they provide economic and social opportunities and benefits that result in positive multipliers effects such as better accessibility to markets, employment and additional investments. When transport systems are deficient in terms of capacity or reliability, they can have an economic cost such as reduced or missed opportunities. Efficient transportation reduces costs, while inefficient transportation increases costs. Because the movement of freight has changes in economic systems at the global, regional and local scales, Hewlett Packard (HP) must find a way to make movement of good in their supply chain more efficient and less expensive. HP must adopt the “cube out” method in their transport trucks and when packing international containers. When their products are loaded into an international container, they may “weight out” - reach the allowed over the road weight when mounted on a chassis...
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...INTRODUCTION The rapidly changing culture, politics and economics of modern life deeply affect the industrial environment, especially consumer industries such as textiles and clothing (Lowson, King & Hunter 1999). One of the impacts is that the contemporary North American and European textile and apparel industries suffer immense competition from foreign producers (Yan & Fiorito 2002). As early as the mid-1980s, imports were estimated to account for close to 50% of consumption (Lowson, King & Hunter 1999). As most imported textiles are produced with very low labor expense, huge amounts of inexpensive products can be supplied in the domestic market. Considering this situation, competitiveness in cost and quality continue to be key issues for textile manufacturers. In order to significantly reduce time and cost in the supply chain, the industry needed to become more focused on consumers by developing a supply chain management process that would be demand driven and production that would be synchronized to replenish product at the consumer's pull rate (Lovejoy 2001). Today, consumers desire to personalize the style, fit and color of the clothes they buy, and require high-quality customized products at low prices with faster delivery (Lee & Chen 1999). New manufacturing technologies such as 3D body scanners, CAD/CAM systems, and digital textile printers have played a key role in increasing the effectiveness, flexibility, agility, and precision of production. ...
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...Table of Contents • Introduction Page 1 • The Great Seven ▪ Principle 1 Grouping Page 2 ▪ Principle 2 Customization Pages 2 - 3 ▪ Principle 3 Listening Page 3 ▪ Principle 4 Differentiate Page 4 ▪ Principle 5 Managing Pages 4 - 5 ▪ Principle 6 Development Page 5 ▪ Principle 7 Performance Pages 5 - 6 • Recommendation ▪ The Right Attitude Pages 6 - 7 ▪ Adapt to Changes Page 7 • Conclusion Page 7 • References Pages 8 - 9 Introduction In this assignment, we are to critic an article by Anderson D.L, Britt F.F and Favre D.J on their seven principles of supply chain management. To start off we must first understand what does Supply Chain Management (SCM) means, SCM simply means the managing of a product or service flow during its life cycle M. Rouse, (2010). The average understanding of a product or service flow is usually from the provider to the direct customers. However, there is more to the flow than we know. For example there is the “backward flow” from your first tier supplier to your second tier supplier and so on, also the flow usually does not end at your direct customers or in this case first tier customer, in some industry your first tier customers may be suppliers of product and services to your second tier customers. For example, your first tier customer could...
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