Abstract

Unpredictable demand, heterogeneous customer requests, short product life cycles, increase in the demand for customized and quality product and services and technological and innovative discoveries that enable all these have boosted the rivalry between enterprises. The role of mass customization system in defining and meeting the requests and necessities of the customers who are the focal point of this rivalry in an efficient and adequate manner has increased since 1980’s. Mass customization means offering products that meet the requirements and the necessities of the customers at mass production costs. Mass customization system which provides for the customer participation at different points of product value chain provides the opportunity to customize products in different levels. In the kitchen production industry where design-production-assembly and distribution stages of the production are completely determined according to the specifications of the product which is going to be presented to the customer, mass customized products provide cost advantages. Aim of this study is to be able to present the cost advantage by comparing the costs of Enterprise B which custom produces kitchens and Enterprise A which produces modular kitchens with mass customization approach. To that end, cost data of the two enterprises analyzed and it was seen that the enterprise which uses mass customization production system gains cost advantage by using scale and scope economies efficiently.

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