MASS CUSTOMISATION

This is the process of providing and supporting profitably individually tailored goods and services,

according to each customer preference with regard to form, price, place and time. It is the use of

flexible processes and organizational structures to produce varied and often customized products

and services at low cost of a standardized, mass production system.

The above definitions bring out the following terms:

- Providing and supporting: to ensure success over a long period of time e.g. after sales

services

- Profitable: in all adopted options

- Individually tailored: products are designed to fulfill the needs of individuals

- Goods and services: can both be customized

- Customer preferences: they should be unique and easy to satisfy

- Form, place, time and price: nature of product, when it’s required, price charged that

customers are willing to pay for.

Preconditions for mass customization

Since not all products can be customized the organization can assess the following conditions

before embarking on customizing a product:

- Individual needs and preferences of customers

- Assembling unique offerings of the product to the customer

- Customer appreciation once they are satisfied by the product

- Adaptable technology and processes that can allow for customization

- Support of intermediaries and suppliers to enable distribution and supplier adaptability and

flexibility eases customization.

Approaches to mass customization

There are three options available to organizations:

1. Standard product, standard service and customized communication

In this option, the organization keeps the product and the nature of the service standardized, but

adapts the communication customizing it to the intended target customer.

2. Standard product, customized service and customized communication

In this option, the product is kept standardized, but the service offered and the communications

are customized to the customer. The organization here has the ability to adapt aspects of the service

offered as well as the communication but the core product remains the same e.g. hotels.

3. Customized product, customized service and customized communication

In this option, the organization is able to customize the product, the service and the communication

that are directed to the customer. This puts the organization at a challenge as it has to be able to

deliver the options that it offers to its customers.

Selecting the appropriate degree of customization

 The organization mission: this reflects the reason for the existence of the business and

describes the way in which the organization operates.

 Customer feasibility: this involves the needs of customers and the components of the

product that they would like customized. If customers do not approve, then customization

is not viable.

 Competitive advantage: this can be achieved by providing customization after many years

of not giving it, not satisfying a specific segment or the customization is difficult to

implement successfully. To gain competitive advantage, the company needs to examine

 the actions of the organization’s competitors and determine how best to counter act these

actions.

 Operational feasibility: this is when the organization has the ability to actually customize

its products in the way the customers want. The machinery and equipment have to be able

to cope with the pressures that customization will place on them.

 Financial feasibility: this refers to the profitability that the customization will bring to the

organization bearing in mind the costs associated with it and the potential benefits that can

accrue to the organization.