Every business sets out to satisfy its customers and leave a positive balance sheet at the close of the day. To do this, the business has to meet the customer's needs without spending over the top.
One way to do this is by creating products that fit the customer's specifications. This way, the products are built according to a template agreed upon by all parties.
This is the concept of the mass customization method. It is an approach used by several companies today for reasons you'll find out in this article.
What is it
Mass Customization is an approach that involves the design, modification, and delivery of goods and services that meet the customer's specific needs. It is a flexible and personalized technique for the most part. And it yields the best results when the customer's specifications and choices are considered while developing a product.
The product can be produced in mass when the customer specifications are well accounted for. This process is efficient and economical as it cuts waste and decreases the unit cost of production.
Mass Customization techniques:
1. Collaborative Customization
With Collaborative Customization, the client is not well-positioned to specify what distinct product features they want. Hence, the company contributes to the bulk of the product design process with little help from the client. The client is then given a range of product selections to pick from.
2. Adaptive Customization
Under this approach, a manufacturing firm develops a custom-built product with certain general features. This way, the product can perform various functions and be used by the customer in different capacities. The customer may only alter the product's framework to suit their use specification.
3. Cosmetic Customization
The manufacturer creates a standardized product and uses different packaging methods in this approach. It is used when the customer's preferences converge.
4. Transparent Customization
Companies use the transparent customization approach when they have a good idea of their customers' needs. This approach is a product of manufacturing experience, consistent observation of customer behavior, and market trends.
When do we use it?
Businesses use the mass customization approach to:
Cut production costs
A company can reduce its unit and total production costs by producing in bulk.
Serve a special-demand customer base
Some customers request specific functionalities and features in their products. You can build these products to suit their taste and meet their needs with a mass customization operation.
Build a brand reputation
A business can build trust by meeting its customer's needs as specified. These customers can spread positive words about the business, thus enhancing its reputation.
Build an operational profile
Companies that operate with mass Customization have a well-defined operational structure. They can optimize their systems to cut wastage and turn out products of a specific quality, dimension, and utility.
What business questions is it helping us to answer?
The answers to the following questions provide insight into what purpose the mass customization framework can serve in today's business world.
What product attributes represent the customer's ideals?
With experience, a company can determine the range of product qualities its customers demand. This knowledge can help it in future product design and development campaigns.
What value-chain resources and operations can I repeat with success?
A company that services a specific customer need for a long time can gain expertise in the process. This means they can easily tow the same path of operations every time and still achieve similar results.
What solutions can I proffer to customer challenges and needs?
A company can make its customers active participants in the design of products that can meet their needs.
How can I optimize my value chain?
When a product request is specific (as with custom-built products), it is easier to coordinate efforts on the work floor. You can optimize and control every stage—from design and development to production and distribution.
How do we use it?
Below is a description of the most important elements of a mass customization technique.
Collaborate
Once you've identified your customer, meet with them to know what they have in mind.
Collect their specifications per the quality of functional design, convenient use, and all the added-value features they request.
Suggest better means to achieve their objectives.
Use 3D technology to visualize the product development process and its finished state.
Adapt
Get to work with the information obtained from the last step. Adjust your operations as necessary to fit your customers' demands. You may need to use a different product design process or operational procedures.
Produce a sample for quality control checks
Once you've put all the right gears in place, produce a sample. Check if this sample meets all the customer requirements. Compare its performance against a standard or a measurement metric to know if it fits the bill.
Produce en masse
If the sample is certified fit for its intended use, you can reproduce it to its required quantity.
Practical example
A canned milk-producing company contracts a packaging company to produce a specific type of lid for its canned products. It designs a can with a lid that pops open with a special mechanism.
This mechanism is designed to extend the product's shelf life. And because it is unconventional, the manufacturer has to adjust its mold assembly. It also uses a more rigorous extrusion process to create the specified lid design.
The packaging manufacturer uses this template to produce several batches of its cans. It later supplies them to its customer.
Advantages
It offers variety and the element of choice.
With mass Customization, the customer can pick from various customizable design options. They can choose the color, pattern, and profile that best suits them.
It is a cost-cutting strategy
With the help of a specific product template, the manufacturer can reproduce several stocks of a requested product. This makes for significant savings from the reduction in wastage and the unit cost of production.
It is a customer-centric approach
A mass customization approach carries the customer along and will create a satisfied customer base. It relies on specific customer inputs to make key decisions about the product.
It can promote brand image
Customers are satisfied when they get what they request. This increases brand loyalty and trust, which is good for the business.
Disadvantages
Increased production time
Custom-made products have to follow a specific and sometimes rigorous production schedule. This process may take longer production time to complete compared to mass production.
It creates the burden of expectations
With mass Customization, manufacturers are trusted to deliver specific quality and quantity products. This can put undue pressure on them if they are ill-equipped to handle the pressure.
It requires critical investment
Your machinery, operations, and resources must be flexible and well-equipped to cater to the range of customer specifications requested. This will present serious cost implications for any company.
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