Mass Customisation

Question 1

What is mass customisation

Answer 1

Using CAM to produce individually tailored output to customers on a large scale

Question 2

What is the axis based on

Answer 2

• The product (Y) and how it’s presented (X)

- If it’s a big change of the end of each axis

Question 3

What is collaborative customisation + example

Answer 3

Talking to the customer to establish exactly what they want then manufacture
(Producing to order)
E.g. Tailored suits

Question 4

What is adaptive change

Answer 4

• product hasn’t really changed how it’ll be presented
• Firms produce standardised product but customer is able to customise it AFTER it is purchased
  E.g. LED lights

Question 5

What is transparent customisation

Answer 5

• not changing how it’s presented but there is a big change in the product
• Firms provide each customer with a unique product but DONT tell them it’s been customised
  E.g. Google Ad words

Question 6

What is cosmetic customisation

Answer 6

• Product : no change Presenented : Big change
• Firms producing standardised product with customised options BEFORE purchase
  E.g. milk being bought in different pints/ colours

Question 7

Give one pro of mass customisation

Answer 7

• ^ operational flexibility = better meet customer needs = higher sales = higher revenue
  Long terms: Repeat business = ^ brand loyalty (^ PED = ^ Rev) = ^ Prices ( ^ added value)

Question 8

2 other pro of mass customisation

Answer 8

• Less waste because output is produced to customer preferences
• stimulating work environment = wider variety of tasks = lower absenteeism = low labour turnover

Question 9

What is the main con of mass customisation

Answer 9

• Requires CAM = CAD, IT, Training costs
  = finances available ( do you have the facilities if not how will I get them from debt or equity)
  Short term impacts = ^ capital expenditure
  Long term = ur gonna get less waste, operational flexibility etc which will offset the cons

Question 10

Give two more cons of mass customisation

Answer 10

• Less scope for economies of scale
  = wider product rage = more RM/ component = business has less negotiation power against supplier = ACPU ^
• Higher C.U
  Multi product production line = less likely to have 100% C.U = less efficient = ACPU ^