...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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...------------------------------------------------- Customization Online Customized Beauty http://www.truthartbeauty.com Truth Art Beauty offers customization for skincare blends. You can create your own skin care blend by selecting the natural ingredients of your choice. Consumers can create an eye balm, face nourish, body salve and bath tea. All ingredients are pure and chemical-free. Some ingredients they offer are sweet almond oil, ginseng extract, and Dead Sea salt. To customize an eye balm it’ll cost $50 in this website. In other stores, eye balm cost $81 but it’s not customized. A custom face nourishes cost $54 in Truth Art Beauty. In other stores such as Nourish Organic, they offer face nourish for $23 without customization. A custom body salve in Truth Art Beauty cost $28. In other websites, body salve cost $5-$10 but it is not costumed. This is the only website that had customized skincare blends. This website offers free shipping and returns if the customer is not happy with the product. Orders require three to four days of processing before they can be shipped. Products arrive three to nine business days from the time the order has been placed. The customer provides a lot of information. Truth Art Beauty explains what the ingredients do for your skin. This website is very brilliant. Customizing a skincare blend is perfect for every type of skin. Truth Art Beauty is successful because the ingredients are for all types of skins and the prices are reasonable....
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...Question 1 Mass customization, using mass-production technology to quickly and cost-effectively assemble goods that are uniquely designed to fit the demands of individual customers provides a competitive advantage to organizations (Daft, 2010). Mass customization has three main capabilities, elicitation, process flexibility, and logistics to meet customer demands (Zipkin, 2001). Elicitation is the process of providing consumers the ability to communicate what they desire, whereas information is gathered and processed. Process flexibility is the ability of an organization to take the information and provide or produce the customized product or service requested by the consumer. Once the service or product is ready, the logistics is the collaboration of the organization’s processes to employ or deliver the product or service. Mass customization may also be used in service firms, whereas unlike a manufacturing organization, service organizations accomplish their primary purpose through the production and provision of services, such as education, health-care, transportation, banking, and hospitality (Daft, 2010). An example of a mass customization utilized by service firms are colleges that offer specialties degrees. Students attending college may have a specialty they would like to pursue when obtaining a degree. Degrees offered at a college may be generalized such as obtaining a MBA, or more specialized such as a MBA with a cognate in marketing, project management, accounting...
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...) to construct a rival plant in the United States. The essential issue at hand is whether American Connector’s customization manufacturing strategy should be modified or replaced to meet the threat posed by DJC Corp.’s low-cost manufacturing approach. The situation is particularly critical as ACC’s Sunnyvale plant has recently been experiencing rising costs and deteriorating product quality. Consequently, the present analysis will examine the manufacturing strategies of American Connector Co. and DJC Corp. from a SWOT (Strengths, Weaknesses, Opportunities, and Threats) perspective in order to determine the potential impact of JDC’s entry into the US connector market. American Connector Company Mass Customization Manufacturing Strategy • Strengths DJC Corporation Product-Focused Manufacturing Strategy • • • ACC’s Sunnyvale plant produces a large variety (4,500) of connectors. This allows the company to provide just about any kind of connector that a customer could want. Products are customized and stateof-the-art. They also exceed customers’ expectations. Batch processing and automated assembly facilitate production of large quantity of products (600 million units per year). ACC is committed not only to product variety and quantity but product quality as well. Production process is flexible and easily accommodates customers’ needs. Mass customization approach focuses on product innovation rather than cost reduction. • • • • JDC’s Kawasaki plant...
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...Executive Summary Jeremy Shaver requires developing a marketing strategy to revive BWM Group Canada’s Individual Collection (IC) Program. BMW’s market consists of four major segments: upper liberals, post-moderns, upper conservatives and modern mainstreams. The IC program has focused on the Upper Conservatives, effectively ignoring the Post-Moderns who comprise their target market for sports cars. To promote this new strategy, he should develop a new marketing plan aimed at promoting individuality and personal expression, targeted at the performance car market. He will also need to ensure dealer participation through incentives and training. If this fails to increase profits from the IC during the first year of execution, Shaver should look at the feasibility of continuing the program. Problem Statement Initially, BMW’s Individual Collection program (“IC”) showed promise. However, in the third year after the program was introduced, sales are lagging due to poor dealer participation and lack of corporate support. BMW offers few financial incentives to dealers and retailers received poor training. The IC only focuses on the luxury car buyer, ignoring performance car enthusiasts. Jeremy Shaver, product planning manager for BMW Group Canada, mustdevelop a marketing strategy to revive the IC, and ensure corporate and dealer support. Situation Analysis Objectives and Goals Jeremy Shaver’s objectives are to determine which segment(s) of BMW’s customer base will respond to the...
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...In the first phase identify the parameters relevant to Thorr Cruiser. Thorr Cruisers not modern and apart from the old few people want to purchase Thorr Curiser. The parameter of contemporariness has identified importantance for Thorr Cruiser. The price maintained is a recommended solution; through public Hollywood film and interest the bike should go through. Without financial services will fail and are perceptible differences in Thorr Cruiser. The motorcycles differences in controls, power, steering, and design, the motorbikes perceived as different by regular users, and the bikes repositioned. Using price, and quality engineering the products different and perceived as repositioned. The results are successful using financial services, and Hollywood Internet. The second phase is to whether to reposition Thorr Cruiser or to produce a new motorcycle based on the present products. The situation was Thorr Cruiser could not differentiate from its local competition, there was a loss, and the customers were purchasing from competitors. The customers purchasing from competitors was causing the company to lose money. At this point the question is should Thorr Cruiser produce a new motorcycle or reposition. The recommendation is Thorr Cruiser should produce a new product. The reason because of a new launch it will target the younger group by using a new product. The new launch will have features that appeal to the younger groups, and have a new brand name that will appeal...
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...at a standstill or be unable to meet specific quantities of production for that day and lead time for repair/parts of the machine itself could take time. - Possible risk mitigating strategies that could be implemented to solve this issue would be to have the supplier pool its inventory and bring in stock locally and implement a risk pooling strategy where they would pool our safety stock along with others to cover our demands. For manufacturing as we produce batches of similar products at a time we can begin to implement a postponing differentiation strategy within our manufacturing, the parts are essentially made the same and the customizations can be done prior should a customer require a specific customization that can be accomplished within the production line at a later time for safety stock. The costs would remain low because the customization process is still done within the boundaries of manufacturing. - Tradeoffs for implementing risk pooling would be the costs of transportation for the supplier would be greater than the inventory reduced savings however transportation is taken care of on our side and thus transportation costs for delivering to us are not incurred. For the postponing differentiation strategy possible tradeoffs would include higher labor...
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...This case describes Levi's attempt at mass customization. Caught in the middle between low-price competitors and premium priced designer jeans, Levi's considers a proposal for customized jeans that they hope will help them regain a differentiation edge. This is a short case and can be used as a short (30 minutes) discussion in tandem with a lecture, or, because students will usually be very familiar with the industry and it presents some quantitative tasks, the case can also work in an 80 minute block. Objectives 1. Students gain experience in analyzing a company's differentiation advantage. 2. Students will assess the potential threats to differentiation, particularly those that come from low-price competitors and those from more differentiated competitors. 3. Students gain experience in quantifying the costs and benefits of differentiation. Study Questions 1. Assess Levi's situation at the time of the case. What is at the root of their problems in the denim market? 2. How does Levi Strauss create value for its customers? 3. Assess the Personal Pair Proposal. What is your evaluation of it from a quantitative perspective? What is your evaluation of it using the VRIO framework? 4. What is your recommendation concerning the Personal Pair proposal? How does Levi Strauss create value for its customers? There are multiple answers to this question. Certainly, people buy Levi's for different and multiple reasons. Some...
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...Riordan Manufacturing Team A University of Phoenix Strategic Management MGT\498 William Etherton July 17, 2013 Riordan Manufacturing Riordan Manufacturing is a worldwide plastics manufacturer employing 550 persons with projected yearly earnings of $46 million. The company is entirely owned by Riordan Manufacturing Industries, a Fortune 1000 enterprise with revenues in excess of $1 billion. Riordan is well established locally and nation-wide, although they are based out of San Jose Riordan has a manufacturing plants in China, Georgia and Michigan. Every company no matter how well it is doing professionally as well as financially always has room to grow and better themselves. Riordan has thought of different ways to remain competitive in an ever-dynamic environment, Riordan Manufacturing must stay current with the latest technology, recent developments in the industry, and attend to the needs of its customers. After telecommunications and data networking systems require an upgrade to a better support of the company’s recent and future growth needs, long-term relationships will be required by maintaining rigorous quality controls, innovative solutions, reasonable pricing, and a responsive business attitude. (B, 2009) Riordan Manufacturing will strive to be a solution provider for their customers and not be a part of theirs customer’s challenges. Future is must be focused in maintaining and achieving reasonable profitability to assure that the human capital and financial...
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...Introduction In the competitive world of manufacturing, supply and demand, one company is standing out and making its presence known, Riordan Manufacturing Incorporated. This company is at a key point on whether to continue to expand further in the global market or continue current operations in the status quo and risk being out competed by rival companies. The following is an explanation will show that the company is in need to expand to further markets but why it has the management strategy and tools to expand. Common Competitive Advantages Riordan Manufacturing Company is the most popular plastics manufacturer not only in the United States but in the global market. The company strives to be the best company in the world. The company is owned by Riordan industries, a fortune 100 enterprise that focuses on proving solutions to their customer’s challenges. Riordan manufacturing company operates similar to companies like McDonald’s, the leader of the fast food chain and other leading companies because they all focus on change. They will strive to be a solution provider for their customers and not be part of the problem. The competitive strategies are they focus on the long term relationships with its customers to ensure them quality products, innovative solutions, and for the products to be sold at reasonable pricing. Riordan Manufacturing will have to continue to focus on its customers and their needs, come up with different strategies to focus on the competitive industry...
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...Shipper Manufacturing Company 1. What objectives should be adopted in manufacturing with respect to cost, delivery, quality and flexibility? Given the facts, it is critical for the Shipper Manufacturing Company to have a vision to become the leader in the market or niche that the company is focusing its market focus on. Additionally, it may adopt a strategic goal to attain the Malcolm Baldridge Award or compliance with applicable International Organization for Standardization requirements within a defined period of time. specifications into the product engineering process by doing a 'House of Quality' exercise. Also, the company has a vertical organization that may add additional cycle time and lead to miscommunication of customer desires and corporate initiatives. They need a horizontal organization that can adapt quickly to the ever-changing demands of the customer and react immediately to change. The Shipper Manufacturing Company should hold a 'Voice of the Customer' exercise where both internal and external customer requirements and expectations are brainstormed and communicated. Additionally, the company should ensure customer satisfaction and incorporate customer In order for the Advanced Products division (ADP) of Shipper to match its new business strategy, the company will need to adopt new objectives. Shipper will gradually shift from a low-volume, custom designed product to a high-volume, continuous product. The current products are 100% customer designed, therefore...
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...Indian Manufacturing Industry India’s manufacturing sector is on a high growth trajectory. As targeted by the National Manufacturing Competitiveness Council (NMCC), it is set to contribute 25% to the GDP by 2025 compared to the current share of nearly 16 %. Notably, the sector contributed 66% to the nation’s exports and has been strengthening at CAGR of 20% in the last five years. The competitiveness that the sector commands in the global arena is driving its growth. India ranks second in the world as per the 2010 Global Manufacturing Competitiveness Index (GMCI) prepared by the US Council on Competitiveness, and Deloitte. As per the same source, India would maintain its second ranked and continue to dominate the global manufacturing even after 5 years. India has set benchmarks in the international market with respect to quality in manufacturing. The country is currently second only to Japan in hosting companies awarded for quality excellence. The India advantage is favouring growth in the sector as international players such as Hyundai, Nokia, Samsung and Airbus are focussing on setting up manufacturing facilities in the country. Interestingly, India’s growth in the manufacturing sector overshadows other BRIC members. This can be associated to the strength in the Indian Domestic market. In a major boost to the 'Make in India' initiative, the Government has received confirmation from top technology firms such as GE, Bosch, Tejas and Panasonic regarding their decision to invest...
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...Shipper Manufacturing Company 1. What objectives should be adopted in manufacturing with respect to cost, delivery, quality and flexibility? Given the facts, it is critical for the Shipper Manufacturing Company to have a vision to become the leader in the market or niche that the company is focusing its market focus on. Additionally, it may adopt a strategic goal to attain the Malcolm Baldridge Award or compliance with applicable International Organization for Standardization requirements within a defined period of time. specifications into the product engineering process by doing a 'House of Quality' exercise. Also, the company has a vertical organization that may add additional cycle time and lead to miscommunication of customer desires and corporate initiatives. They need a horizontal organization that can adapt quickly to the ever-changing demands of the customer and react immediately to change. The Shipper Manufacturing Company should hold a 'Voice of the Customer' exercise where both internal and external customer requirements and expectations are brainstormed and communicated. Additionally, the company should ensure customer satisfaction and incorporate customer In order for the Advanced Products division (ADP) of Shipper to match its new business strategy, the company will need to adopt new objectives. Shipper will gradually shift from a low-volume, custom designed product to a high-volume, continuous product. The current products are 100% customer designed...
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...Broadening Perspective: Managerial Analysis Ideal Manufacturing Company is a company that is based out of Sycamore, Illinois, which has sustained a company that does research and production of farm related equipment. The company has been manufacturing the farming equipment for a number of years. Ideal Manufacturing has been the single supplier to outside manufacturing companies that are looking to hire research and development companies for special projects. The research and development department happenings have included an overhead cost center that delivers their services to the internal manufacturing departments. In-house the department’s costs have risen to an ultimate high, which has led to Ideal Manufacturing to begin to reflect on the idea of letting a much larger manufacturing company to be responsible for the hiring and the departments de elopement of special projects. There are four various types merchandise lines that are involved which is the market analysis, product design, product development, and prototype testing. Each one of these departments is designed to help create ranch, agronomic, and farmstead related type of machinery products. The research and development department has yet to sell its services to external organizations; however due to the extended past of achievements, bigger companies that also produce agronomic products have contacted Ideal Manufacturing Company has been contracted for the development and research of very specific assignments...
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...Insert Name Insert Date CASE STUDY Business Strategy for Competitive Advantage for UMUC – differentiation – on operational process As a result of increased competition within the market, UMUC must develop competitive strategies that will ensure that it remains competitive within its market. UMUC can use any of the following porter’s generic strategies for competitive advantages of lower cost, differentiation or focus. These generic approaches are applicable to products or services in all industries and to different sizes of organizations. Porter’s generic strategies are methods of gaining competitive advantage or developing competitive edge that enables the company to increase sales (Ehmke, 2008). The Cost Leadership strategy will be applied if UMUC is able to increase profits by reducing costs while at the same time charge the industry average price. This will help increase the market share due to offering lower prices while at the same making reasonable profits. The use of focus strategy is where the company concentrates on a selected niche market. This is by understanding its dynamics and unique needs of the customers and developing products or services that exceeds expectations. This will create an aspect of customer loyalty and will lead to increased sales and profits. Differentiation strategy refers to the strategies manufacturers, retailers and service industries use to distinguish their products or services from...
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