Mass Customization - General Flashcards
What is a major expense on the balance sheet that mass customization eliminates?
Large inventory costs. Large inventory
Where are 2 areas that businesses save money by mass customizing?
Unsold inventory and production costs. Unsold Inventory Production Costs
What was the pandemic’s largest impact on the way business is conducted?
2020 saw a global acceleration in the adoption of digital trends, with eCommerce being the one with the highest adoption rate.
What do 84% of Americans expect from their digital brands?
To have a seamless experience between physical and online.
What kind of impact do you think tech Giants like Amazon have done for brands looking to get into the eCommerce space?
Amazon has created a high bar for other companies in the eCommerce space, so if you can’t promise them 2-day shipping, you better come correct becuase customer satisfaction expectations are super high.
Who coined the term “mass customization” and when?
IBM in 1984.
What is the actual definition of mass customization?
You are producing goods according to precisely what individual customers want, while keeping costs for manufacturers at a low level.
What do leading experts agree that mass customization is?
The future of retail.
Why did you guys decide to go the route of mass customization?
We wanted to be able to provide a ton of value to our customers, and so that the customer could feel more connected to the brand.
Why was mass customization developed?
As a response to the rise of personalization on the web.
Are there trends that you’ve learned from other successful retailers that drove your desire to move in the direction of mass customization?
Yeah so most successful retailers have found that while customers are happy to browse through large numbers of products, they increasingly prefer to order customized goods - choosing from a small number of options like color or sizing.
For mass production to make decent sense from a business perspective, what is required?
With mass production you have to process a high volume of orders, which is going to drive up costs, and now you’re dealing with a lot more complexity. ———————————————————- Must process high volume of orders Increases costs and complexity
What did you see as the main advantage with mass customization over mass production from a production standpoint?
So with mass customization, you only produce what you sell… …this keeps costs low, makes production less complex, and keeps customers happy with the best quality of products.
How does mass customization improve quality?
Products tend to be more uniform. Since products are made according to specified specifications, it helps with improving the quality of individual items.
How does mass customization make for a better supply chain?
Gives us control over our inventory levels, because we can predict demand more accurately.
What does mass production focus on and emphasize, as compared to mass customization?
Mass production - Economies of scale Mass customization - the needs of individual customers.
Mass customization can involve customizing every detail about an item or service. What are some examples?
Materials, design, packaging, colors or flavors in food products, location of delivery, and more.
Mass customization allows for on-demand manufacturing, providing what benefit to the environment?
Reduced levels of waste and pollution compared to traditional manufacturing.
More and more companies are finding that customizing products to suit individual needs is a great way to:
Increase conversions.
In the past, customization has always been something reserved for what types of goods?
High-end and luxury goods that tend to be expensive.
What is monogramming?
A symbol consisting of two or more letters, often the initials of a company or individual.
Mass customization is the next step in…?
The evolution of eCommerce.
The implementation of mass customization can help create an even more successful online market place by providing what?
[Think Amazon] Better customer service and creating a personalized buying experience.* Better customer service Buying experience*
In traditional manufacturing, large corporations and conglomerates rely on what to mass-produce what?
Expensive production equipment to mass-produce standardized parts and products.
The traditional manufacturing business model typically utilizes what 2 modes of production?
Offshore production Extensive supply chains.
What type of costs does traditional manufacturing have, but what does mass-production enable?
High fixed costs, and low variable costs, but mass-production enables economies of scale.
What tools are used more frequently today in manufacturing to increase efficiency?
Robotics and Data analytics
Despite all of the hype surrounding 3D printing, what has yet to happen?
It has yet to replace traditional manufacturing.
Meaning of “wider societies?”
Another way for saying “society at large.” “Society as a whole.”
What are “fablabs?”
Fabrication Laboratories, where DIY and small independent companies use software like CAD-CAM to 3D print.
What do CAD and CAM stand for?
Computer Aided Design & Computer Aided Manufacturing
What is the difference in function between CAD and CAM?
CAD - product design, documents the design process through creation, modification, and optimization. CAM - The computer controlled machinery that automates the manufacturing process.
What does journalist Randall Mayes note is happening with fablabs?
They are already springing up across the US.
What does journalist Randall Mayes say is happening with fablabs in Durham, NC?
The city library system leased a bunch of spaces to sell used books and hold “maker classes.”
What is Duke University doing with fablabs?
Strategically placing them around campus to enable students to make their own products.
How is Duke Medical School adopting 3D printing technology?
They have a printer capable of making human body parts that medical students can use during cadaver shortages.
According to Sherry Lassiter, who runs the Fab Foundation at MIT, since 2003, what has happened to the number of fablabs?
They have doubled globally every year and a half, in line with Moore’s Law.
What is Moore’s Law?
The principle that computers will double their speed and capacity every couple of years. x2 x2
What does Neil Gershenfeld of MIT argue will be the next big step within the maker movement?
Self-assembly based on biological processes.
Why is 3D printing referred to as “additive manufacturing?”
Because it applies successive layers of material to form a predesigned shape.
What does the subtractive process of Traditional manufacturing involve?
Cutting materials away from a solid block.
Using recycled materials and creating less waste, 3D printing is perceived as more sustainable, but how do some believe this might be somewhat misleading?
Depending on the product, 3D printing does produce waste materials that require disposal or recycling.
On-demand printing offers businesses numerous prevention advantages. What were 2 mentioned from journalist Randall Mayes?
Prevents the build up of unwanted inventory, and the cost of storage in warehouses. Unwanted Inventory Cost of storage in warehouses
Custom orders can eliminate what?
The middleman.
Custom orders can reduce what costs?
Shipping costs.
Custom orders can reduce what type of consumption?
Energy consumption.
The maker movement most strategically fills a niche for what types of products?**
It best fills a niche for customized products.**
While the maker movement fills a niche for customized products, what is it not?
Not a solution for all business models.
Fablabs and 3D printing shops are only able to produce what, and where do they arguably fall short compared to mass production?
Items in small quantities, and are not able to compete with faster and more efficient mass production.
In 2010, China surpassed the United states as what?
The largest manufacturing country.
Neither China, nor the US is currently leading the way in Advanced manufacturing. According to a 2012 Report by the US National Science and Technology Council, who are the top 3 countries?
- Germany 2. South Korea 3. Japan
With regard to advanced manufacturing, Germany, South Korea, and Japan, all maintain intensive what?
They have intensive R&D sectors and positive trade balances.
Who is 4th, 5th, 6th, and 7th in the world as Top leading advanced manufacturing countries?
- United States 5. United Kingdom 6. Canada 7. Australia
What was the original industry 4.0?
In 2012, Germany started it’s own smart manufacturing initiative that they referred to as industry 4.0.
What does industry 4.0 consist of?
It utilizes (cyberphysical) digital systems to create physical objects from: 1. 3D printing 2. Data Analytics 3. Robotics
Germany’s succes in industry 4.0 is attributed to whom?
Former Chancellor Angela Merkel’s full support for Industry 4.0 applications.
Germany’s success in industry 4.0 is attributed to which entities?
The hundreds of German companies, especially automotive, which have invested billions of dollars in R&D.
Who are some of the early adopters of 3D printing (industries)?
- Jewelry 2. Medical 3. Dental
Which industries have begun integrating 3D printing into the manufacturing process more recently?
- Construction 2. Clothing 3. Automotive 4. Aerospace
With the ability to print locally, what costs are reduced?
- Production costs 2. Transportation costs …are both reduced by shorter supply chains, and machines closer to customers.
What limitations for some business models, i.e. industrial applications, has prevented the widespread adoption of 3D printing?
- 3D printing (allegedly) has a limited ability to accommodate a variety of materials. 2. Speed is traded-off against resolution. [If you print too fast, you experience a decrease in quality output]
2-Dimensional print jobs are broken down into [ ], 3-Dimensional print jobs use [ ].
- Pixels 2. Voxels
What is the “alleged challenge” with printing voxels?
They are more complicated and slower for printing metals.
Smart manufacturing using 3D printing has what types of costs?
Low fixed costs and high variable costs.
Since 3D printing has low fixed costs, and high variable costs, what does this surmise?
It is arguably not suitable for economies of scale.
Why do some believe 3D printing is unlikely to revolutionize the manufacturing sector?***
Since 99% of all manufactured parts are standardized, 3D printing is not optimal for mass production.***
