Mass Customization

Mass customization is a concept whereby the customer has much higher involvement in the manufacturing process, being able to specify the features of the product they want, for example, selecting the functional and aesthetic features of a cars. Essentially, this trend reflects a change in manufacturers' attitudes. They are now listening to what the market and the consumers are demanding and addressing these requirements.

Manufacturing has been predominately about producing as much of a certain product at lowest unit cost in order to create value for the manufacturer, better known as mass production. As a result, this production-centric approach has told the customer what they need, leaving very little scope for input from the consumer. In essence, mass customization is a response to consumers demand for far greater control over the features of products that they wish to buy.

Advantages
• Customers are often more pleased with the finished product they receive, as it’s to their specification.
• Your workforce is more fulfilled as they now partake in numerous tasks as opposed to one production line responsibility.
• Customised products are more attractive to consumers than uniform products.
• Companies can forge strong relationships with their customers. That loyalty leads to return business time and again.
• As nothing is produced until an order is received, there are huge savings to be made by eradicating inventories of unsold goods and raw materials.

Disadvantages
• Maintaining a high level and variety of stock can incur high warehousing costs. Large amounts of capital are also tied up in stock.
• Typically, as the products are custom made they have a higher cost.
• Offering mass customisation with mass production efficiency is very difficult to achieve.
• If you are coming from a mass production background it is extremely tough to change your organisational structure and culture.
• Substantial investment is needed in information technology to create close integration between all links of your organisation’s value chain and external suppliers and intermediaries.