Mass Customization: Metrics and Modularity

Abstract

Mass customization as a competitive strategy is getting progressively increasing attention in business and academic arenas due to its high potential to provide sustained strategic advantage in a unique fashion. It is well documented that a manufacturing company competes with others in its industry on five dimensions: Price, quality, flexibility, delivery, and service. According to the existing literature, mass customization provides significant strategic advantage in two of these dimensions—price and customization. We, however, argue that when properly implemented, the cellular manufacturing structure associated with the appropriate implementation of mass customization strategy, provides additional competitive value in quality and delivery. Furthermore by virtue of the customer co-design as an integral aspect of mass customization, customer satisfaction also improves under this strategy. Mass customization strategy, therefore, provides competitive advantage in all five competitive dimensions simultaneously—a truly unique strategic accomplishment. We also propose, in this paper, new metrics for mass customization strategy that measure the “mass” as well as the “customization” aspects of this strategy. Finally, we describe in the clearest terms the modus operandi of modularity in product design and the role it plays in bringing about high levels of customization on one hand and economies of scale at component level, on the other. We conclude with remarks that underscore the need for conducting research in the areas at the interface of mass customization and supply chain management.