Course Name: Operation Management A RESEARCH PROPOSAL ON Study of degree of mass customization among Indian companies

SUBMITTED TO Prof. Rajesh Jain

Institute of Management, Nirma University

I would also like to thank our family friends and relatives who have helped us and supported us in all possible ways. Contents: 1. which helped me to put our learning’s into experience. I would like to thank each and everyone who have helped me in my endeavor. A Project report needs co-operation. Title 4 Page 2 of 8 . Rajesh Jain for providing me the honor of carrying out the project.Acknowledgement I am extremely grateful to Prof. Without his guidance I would not have been able to proceed with our project in the right direction. guidance and experience of many more other than the persons whose name appears on the cover.

Limitations 12. Objectives of the study 7. Sampling Design 9. Scope of Study 6. Bibliography 4 5 7 7 8 8 8 8 8 8 8 Page 3 of 8 . Problem Statement 5. Introduction 3. Research methodology 8. Statistical tools to be used 11. Literature Review 4. Techniques of Data Collection 10.2.

419).(also considered co-creation) firms talk to individual customers to determine the precise product offering that best serves the customer's needs (see personalized marketing and personal marketing orientation). in marketing. call centres and management. p.  Adaptive customization . but this product is customizable in the hands Transparent customization . Kamis. is the use of flexible computeraided manufacturing systems to produce custom output. At its core is a tremendous increase in variety and customization without a corresponding increase in costs. particularly in a task of moderate complexity. Page 4 of 8 ." (Chase. but market it to different customers of the end-user (the customers alter the product themselves)  telling them that the products are customized. Those systems combine the low unit costs of mass production processes with the flexibility of individual customization.Title: Study of degree of mass customization among Indian companies INTRODUCTION: Mass customization. Jacobs & Aquilano 2006.firms produce a standardized product. it provides strategic advantage and economic value. some clothing companies will manufacture blue jeans to fit an individual customer.firms produce a standardized physical product. manufacturing.  in unique ways.firms provide individual customers with unique products. This is also being taken into deeper customization via 3D printing with companies like Shapeways. This information is then used to specify and manufacture a product that suits that specific customer. At its best. There are four types of mass customization:  Collaborative customization . online shopping. They found that users perceive greater usefulness and enjoyment with a mass customization interface vs. a more typical shopping interface. For example. At its limit. it is the mass production of individually customized goods and services. without explicitly Cosmetic customization . Mass customization is the new frontier in business competition for both manufacturing and service industries. Koufaris and Stern (2008) conducted experiments to test the impacts of mass customization when postponed to the stage of retail. In this case there is a need to accurately assess customer needs. Mass customization is the method of "effectively postponing the task of differentiating a product for a specific customer until the latest possible point in the supply network.

putting together seemingly contradictory notions – the production and distribution of customized goods and services on a mass basis. However. 1998. 2004). Frankeand Piller 2003. such as those related to the price premium and delivery time (Agrawal et al.the perceived benefits that consumers derive from a specific mass customization offer are a key component of its success (Broekhuizenand Alsem 2002. 2001. because firms can now deliver goods in the wide variety required by the customer. producing. and anything” (Pine and Maskell. viz. The notion of mass customization dates back to 1970 when it was anticipated by Alvin Toffler in Future Shock and delineated in 1987 by Stan Davis (1987) in Future Perfect. (2009) proposed a more pragmatic view of the concept by defining mass customization as ‘‘a process for aligning an organization with its customer’s needs. Of course it does not represent a cure-all approach. By reducing these trade-offs. Rungtusanathamand Salvador 2008. The ideal as put forward by Nissan. The first is a visionary approach. any way they want it and anywhere they want it. Note that the marketing effort becomes diffused throughout the organization in order to recognize and meet the specific requirements of each individual customer. mass customization will become an opportunity which few corporate strategists can afford to ignore. Mass customization is essentially an oxymoron. the ability to profitably provide customers with anything they want.LITERATURE REVIEW Mass customization aims to provide low-cost process differentiation within new markets. Mass customization employs stable well-proven processes. p. anywhere. productivity.’’ The trade-offs between customization and cost. anybody. This goal may. lead time. however. essentially consists of two interrelated parts. any time they want it. thereby achieving a sustained synthesis of strategic goals which seemed impossible just a few years ago. the critical difference is that the processes consist of looselycoupled sub-processes which are sufficiently flexible to be combined and recombined as needed. The concept of mass customization was first introduced by Davis (1987) and later developed by Pine (1993). 1). The mass customizer is able to splice the product variety of the invention model with the manufacturing efficiency of the mass-producer. and quality and identifying the best practices that can mitigate such trade-offs. marketing and delivering affordable goods and services with enough variety and customization that nearly everyone finds exactly what they want. Squire et al. even by the most dedicated mass customer. companies also decrease the sacrifices made by consumers in order to obtain a mass-customized product. any time. Zipkin 2001). The second aspect implied in this vision is the reality of using flexible processes and organizational structures geared to producing varied and Page 5 of 8 . The ultimate in mass customization is manifested in a Nissan Corporation’s pronouncement: “Any volume. be hard to realize.’’ More recently. who defined it as ‘‘developing. But in getting more from equivalent resources. Product change is dynamic. Salvador et al.

but in a cost effective way From mass production to mass customization The forerunner of mass customization was mass production. any way they want it and anywhere they want it. The ultimate is. The new role of marketers is to be the voice of the customer in the company (Oliva. In following Pine (1993) who states that the system of mass production has become outmoded and is no longer effective. The ultimate in mass customization is manifested in a Nissan Corporation’s pronouncement: “Any volume. any time. any time they want it. however. 39). The second aspect implied in this vision is the reality of using flexible processes and organizational structures geared to producing varied and individually customized products and services at the low cost of a standardized. anybody. The ideal as put forward by Nissan. and then to facilitate the customer’s choice of options from within that range. To a growing number of researchers. even preferable. where either of the approaches may be more appropriate under certain conditions. the range within which a given product or service can be meaningfully customized or differentiated for that customer. The first is a visionary approach. anywhere. the ability to provide uniquely individualized products and services satisfying any requirement. the ability to profitably provide customers with anything they want.8). where the goal is to ascertain. researchers of customization such as Jelinek and Goldhar (1983) and Kotler (1989) focus on the contrast between mass production and mass customization. where the goal is to ascertain. the emerging paradigm of mass customization is seen as providing the means for attaining strategic flexibility and responsiveness. Mass customization is essentially an oxymoron. In view of the foregoing. Unlike the foregoing. 1998. putting together seemingly contradictory notions – the production and distribution of customized goods and services on a mass basis. mass production system. This implies that customization is provided within a predetermined variety. viz. from the customer’s perspective. but rather be seen as two positions on a continuum of continuous improvement. be hard to realize. p. What is mass customization? The notion of mass customization dates back to 1970 when it was anticipated by Alvin Toffler in Future Shock and delineated in 1987 by Stan Davis (1987) in Future Perfect. and then to Page 6 of 8 . p. and anything” (Pine and Maskell. 1997. the range within which a given product or service can be meaningfully customized or differentiated for that customer. This goal may.individually customized products and services at the low cost of a standardized. This implies that customization is provided within a predetermined variety. such as Pine (1993) and Feitzinger and Lee (1997). p. 1). mass production system. from the customer’s perspective. we argue that mass production and mass customization should not necessarily be viewed as incompatible opposites. It may also be viable. even by the most dedicated mass customer. essentially consists of two interrelated parts. 1997. however. for an organization to individually oriented marketing strategies and of the information flow between the customer and the organization (Logman. it seems that strategic flexibility together with quick responsiveness is essential.

the question arises whether the particular challenges of mass customization. be followed blindly. It stocked inventory for every possible combination that customers could order and was saddled with hundreds of millions of dollars in excess inventory. A strategy of mass customization cannot. A number of companies have already run into problems while trying to make the leap to mass customization (Pine et al. Amdahl did not achieve its goal of delivering a custom-built mainframe within a week.facilitate the customer’s choice of options from within that range. 1993). But customers did not want many of them and disliked having to choose from so many options. albeit in two separate factories. but in a cost-effective way. Toyota experienced problems when they invested heavily in robots and instituted measures which deprived employees of opportunities to learn and think about process and thus reduced their ability to improve them. The ultimate is. most of which were great engineering feats. An example is that of Nissan. procedures and capabilities before embarking on the shift to mass customization. but it is still the most viable strategy in some instances. the organizational dynamics and capabilities and the particular characteristics of the target markets would also allow an organization to simultaneously practice both mass customization and mass production. Mass production may be outmoded.. With this argument in mind. Problem statement What is the level of mass customization prevalent in Indian companies? SCOPE OF STUDY The project limits to only those companies whose products are available in India through retail stores Page 7 of 8 . together with the guidelines set out in the list of conditions shown earlier. however. the ability to provide uniquely individualized products and services satisfying any requirement. which reportedly had 87 different varieties of steering wheels. Such a strategy could allow for a progressive move along the continuum until the market requirements and/or the organization’s capabilities call for a strategy of mass customization only. it was found that the interaction between mass production and mass customization can be a source of knowledge creation and in the process create a strong competitive advantage to reap superior performance benefits Mass customization is not for everyone Mass customization offers numerous opportunities and advantages to both producers and consumers. however. It is thus important that the organization ensures that its customers really desire customized products or services and that it has access to the required processes. In a study by Kotha (1996) of the NBG’s strategy in the Japanese bicycle industry. Simultaneously implementing mass customization and mass production It was pointed out earlier that mass customization and mass production could be viewed as different placing on a continuum of continuous improvement and not necessarily as opposites.

To study the operations effectiveness and efficiency of the company practicing mass customization. Descriptive is useful because we have a clear idea of problems meet during study. TECHNIQUES OF DATA COLLECTION • SOURCE: o Journals o Books o Websites STATISTICAL TOOLS The statistical tools will be used for analyzing the data which will be collected are percentage method. bar diagrams and pie diagrams LIMITATIONS • • • Geographical limitations: project is based only in India so Geographical constraints may limit the scope of study. develop operational definitions and improve the final research design. Analysis of the data gathered will be carried out to get the answer for our problem statement. BIBLIOGRAPHY 1.com/definition/mass-customization. establish priorities. To analyze the operations of the companies following the mass customization.html?id=bnRFmig2Z1QC&redir_esc=y 2. The project is based only on the products available in retail stores so it may limit the scope of the study. We have taken up descriptive research as important variables are known and clearly defined. It helps to develop concepts more clearly.html Page 8 of 8 .businessdictionary.in/books/about/Mass_customization. http://www.google.OBJECTIVES OF THE STUDY • • • To find out different companies using mass customization in Indian market. http://books.co. Companies practicing mass customization in India are less in numbers. chi square. The data used during the research will be secondary data as our scope is the products available in India retails stores so the data will be related to it. RESEARCH METHODOLOGY: The research approach used is Descriptive Research.