In other words from creating standardized value through mass production to creating customerunique value through mass customization. Overview of mass customization for the wood products industry. E commerce its concerned with systems and business processes that support creation of information sources effective and efficient interaction among producers, consumers, intermediaries and sellers movement of information on global networks types of e commerce tangible goods digital goods software, music audio, text. So much so, in fact, that the old ways of competing simply do not work. Joseph pine, who made mass customization popular with his 1993 book.
As joe pine makes clear, innovative companies are embracing a new paradigm of management mass customization that allows them to create greater variety and. It can be defined as tailoring mass market products and services to the needs of each individual customer. The mass production of standardized goods was the source of americas economic strength for generations and became the model for successful industries. He is the coauthor of the experience economy and the four faces of mass customization hbr januaryfebruary 1997. The goal of the postponement is to delay the customization as late as possible in the supply chain. Mass customization is a business concept for every organization. Yan zhang, arnaud grignard, kevin lyons, alexander aubuchon, and kent larson. As joseph pine makes clear, the most innovative companies are rapidly embracing a new paradigm of management mass customization.
Except for papers, external publications, and where otherwise noted, the content on this website is licensed under a creative commons attribution 4. A model of mass customization for engineering production. Essence of mass customization real places actual events matter time space material substances. In this book pine defines mass customization as to provide tremendous variety, and individual customization, at prices comparable to standard goods and services. Joseph pine in piller 1998 a path of industrial development continuous improvement connected with modularization mass customization development stabilization. Lutron controls is a good example of a company that entered into mass customization as a matter of survival. Today i define mass customization as the lowcost, highvolume, efficient production of individually customized offerings. Pine explains mass customization in its historical context. Mass customization can be described as enabling a customer to decide the exact specification of a product or service, and have that product or service supplied to them at a price close to that for an ordinary mass produced alternative. Mass customization is the method of effectively postponing the task of differentiating a product for a specific customer until the latest possible point in the supply network. Pdf mass customization aims to deliver products and services that best meet individual customers needs with near mass production efficiency. Pine ii, mass customization the new frontier in business competition cambridge, massachusetts.
In chapter 2, pine discusses the evolution of the mass production system in the united states using peter senges 1990 notion of reinforcing and balancing factors. Arguing that mass production of products is outdated, the author outlines new management techniques for. From massive to mass customization and design democratization branko kolarevic and jose pinto duarte 2. Pdf the opportunities of mass customization are acknowledged as fundamentally positive by theoretical and empirical. Generating profits by serving large pools of customers via standard products. Mass customization economics huffman 1998 theres a thin line between mass customization and mass confusion piller et al. Joseph pine ii and entitled forward by stan davis mass customization the new frontier in business.
For better or worse, the business world of today is vastly different than it was a decade ago or even just a few years ago. Today i define mass customization as the lowcost, highvolume. There is not a perfect state of mass customization salvador et al. Download now mass customization is a business concept for every organization. Agile product development for mass customization, jit, build. For the love of physics walter lewin may 16, 2011 duration. Pine focused on the concept of creating a small number. The concept of mass production was introduced in the 1800s and reached its full. Postponement, mass customization, modularization and. Mass customization pine, 1993 has been the subject of extensive discussion in both scientific journals and trade magazines. Personalization mass customization aims to deliver products and services that best.
Joseph pine ii was the most influential researcher behind the development and promotion of mass customisation. Creating a sustainable mass customization business model frank piller 4. These include customizing the services around the standard products, producing customizable products, providing delayed differentiation, ensuring quick response to customer needs, and modularizing components. By focusing on these, the paper presents definitions and explanations of the different approaches to mass customization, and describes the potential reasons for and benefits of mass. An introduction to personalization and mass customization. At its limit, it is the mass production of individually customized goods and services. At its core is a tremendous increase in variety and customization without a corresponding increase in costs. Mass customization is not simply understood as a business strategy, but also as a concept for supporting other business goals such as the operation of a mass or craft manufacturing business. Kamis, koufaris and stern 2008 conducted experiments to test the impacts of mass customization when postponed to the stage of retail, online shopping. Also, pine discussed five ways that enable the progression of a company from mass production to mass customization.
Scholars and practitioners who examined the economic landscape have generally been drawn to large corporations that built their fortunes by transforming fragmented and heterogeneous markets into unified industries. Handbook of research in mass customization and personalization, frank t. Econometric institute report ei 200552 abstract keywords. Keywords mass customization, customerdriven manufacturing, user involvement. Mass customization and design democratization 1st edition. But there are several ways to deliver variety, and mass customization may not always be the best. Mass customization is the new frontier in business for both manufacturing and service industries.
The company found that, by providing products according to each customers unique specifications, they could survive and grow in the competitive market of lighting controls icm conferences inc. Differences between mass production and mass customization, and their impact on the development of production systems are discussed in length. Today, that model is a major cause of the nations declining competitiveness. Another early definition of mass customization is made by hart. Paul zipkin discussed some of the capabilities of mass customization in an earlier article, p.
Mass customization mc, within the marketing, manufacturing, and management contexts of an organization, is the use of flexible, computeraided manufacturing systems to produce custom outputs in a mass. The application of senges ideas to discuss the limitations of mass production as a paradigm is. He attributes the increasing attention on product variety and customer demand to the saturation of the mar. Mass customization basically refers to the tailoring of products and services keeping in mind the specific needs and wants of the masses. Mass customization in urban design, architecture, linguistics, and food december 30, 2009. How does knowledge creation enable strategic flexibility in the context of mass customization. Mass customization for the wood products industry regional wood products consortium workshop, april and may 2011 overview of mass customization for the wood products industry urs buehlmann and torsten lihra. Recognize that mass customization is not being everything to everybody. What matters to most companies instead is to continuously increase their overall capabilities to define the solution space, to design robust processes, and to help customers navigate. The new frontier in business competition new edition by pine ii, b. Relationship marketing in mass markets requires that the market consists of different benefit segments that can potentially be served by differentiated products. Assessing the potential impact of gamified cycling initiatives.
Scanias main characteristic is a modular product range and a value chain that is based on the production of the modules. Mass customization is the capability, realized by a few companies, to offer individually tailored products or services on a large scale. Mass customisation assessment and measurement framework. Pine 1993 described mass customization as providing individual customers with customized products and producing those with principles of mass production in his book of mass customization. Are mass production and mass customization strategies really as incompatible as suggested by pine and his coauthors. The next stage in the shift to mass customization b. Gilmore and pine serve as editors for the book titled markets of one 15 which is a collection of articles on catering to the increased market diver. This paper focuses on four interrelated strategies. The mass production of standardized goods was the source of americas economic strength for generations. Get your kindle here, or download a free kindle reading app. This approach brings flexibility to the way customers can specify their individual needs and also comes along with new challenges for production processes that have to. Everyday low prices and free delivery on eligible orders. In other words, customization must be possible within the product category for relationships to develop via products including branding and image, people or technology.
Providing custom products and services with mass production efficiency. Mass customization mc, within the marketing, manufacturing, and management contexts of an organization, is the use of flexible, computeraided manufacturing systems to produce custom outputs in a mass production environment. The four faces of mass customization epub download 29 apr according to james h. The concept of mass customization mc focuses on satisfying individual customers. As joe pine makes clear, innovative companies are embracing a new paradigm of management mass customization that allows them to create greater variety and customization in their products and services at competitive prices, or better. The amount of uncertainty, instability, and lack of control that firms have in their business environmentsthe market turbulencehas increased dramatically for companies in almost every industry. Overall, mass customization should be considered a journey rather than a destination. Realtime machine learning prediction of an agentbased model for urban decisionmaking extended abstract.
Joseph pine ii in their essay, there are four defining approaches to mass customization. Mass customization free download as powerpoint presentation. Technology solutions for your business mass customization. Mass customization means to offer products or services which meet the demands of each individual customer, but which still can be produced and delivered with mass production efficiency. Nov 05, 2012 mass customization economics huffman 1998 theres a thin line between mass customization and mass confusion piller et al. Mass customisation explains how affordable goods and services can be delivered to satisfy the needs of the individual by combining the efficiency of mass production and the customisation level of craftsmanship. Custom made products are only available on orders these days because it is a highly difficult task to make customized products for all the segments of consumers.
But in todays turbulent business environment mass production no longer works. Mass customization an overview sciencedirect topics. Review brings to the fore the discussion on how companies will meet the future needs of their customers and. The four faces of mass customization ideas and advice. If cus nation virtually all executives today recognize the need to provide. And mass customization has been touted as the premier way of achieving that goal. Based on his experiences at ibm and research into mass customization conducted at mit and at the ibm consulting group, the author has identified five basic methods for mass customizing products and services. Joseph pine ii are the founders of strategic horizons, a management consulting firm in cleveland, ohio. Mass customization levels and success factors are compiled and classified.
How does a firm that derives a major portion of its revenues from mass production implement mass customization. He defines mass customization as a process by which firms, in different industries, apply technology and management methods to provide product variety and customization through flexibility and quick responsiveness. Mass customization is the process of delivering widemarket goods and services which are modified to satisfy a specific customers need. Although the concept of mass customization is not new, pine provides examples of industrial practice that make the book inter. Pdf on jan 1, 1993, pine ii and others published making mass customization work find, read and cite all the research you need on researchgate. As joe pine makes clear, innovative companies are embracing a new paradigm of management mass customization that allows them to create greater variety and customization in their products and. In his seminal text on mass customization, pine 1993a, p. Mass customization manufacturing and its application for mobile phone. Mass customization mc as a business strategy seeks.
Mass customizing products and services emerald insight. Joseph pine ii is a cofounder of strategic horizons. May 23, 2019 mass customization is the process of delivering widemarket goods and services which are modified to satisfy a specific customers need. Mass customization mass customization means to offer products or services which meet the demands of each individual customer, but which still can be produced and delivered with mass production efficiency.