The Internet Encyclopedia (Volume 3)

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MASSCUSTOMIZATION 401

Operations

processes

Vendor

processes

Sales

processes

CUSTOMER

Vendor

processes

Operations

processes

Sales

processes

Vendor

processes

Sales

processes

Operations

processes

Vendor

processes

Sales

processes

Operations

processes

Vendor

processes

Sales

processes

Operations

processes

Stage IV

Figure 2: A cluster of value.

Temporal flexibility: Flexibility in timing work arrange-

ments, processes, and activities to match demand

flows.

Technological flexibility: The flexibility of process technol-

ogy to be used for multiple purposes.

Given the importance of flexibility, it seems advisable

for an organization to devise methods to ascertain the

levels it requires. However, flexibility is a concept that

is difficult to quantify and operationalize—to a degree,

each business must assess its individual impact in terms

of general benefits and costs. Closely linked to demand

complexity and the flexibility debate is the notion of mass

customization, and it is to this that we now turn.

MASS CUSTOMIZATION

Over the past decade, management literature has been re-

plete with calls for mass customization [for a balanced

debate, see Zipkin (2001)]. This “movement” recognizes

an increasing demand for individual, customized, and

personalized goods and services with the need for volume.

We can see how this trend has emerged by considering the

main themes witnessed in the evolution of the operations

environment.

Strategic Classifications

Historically, the following strategic factions have been ev-

ident:

Mass production: This entails high volume, standardized

goods and services, low variable cost, and economies

of scale with little or no variety.

Lean production: As per the Toyota production system,

this is the removal of all waste from the operations

environment.

Mass customization: This is similar to mass production,

but with variety. Instead of selecting one variety of a

product, each customer provides unique information