Individual DB - Ch 7 Mass customization of products has become a common approach in manufacturing organizations Discuss ways in which mass

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Ch. 7: Mass customization of products has become a common approach in manufacturing organizations. Discuss ways in which mass customization can be applied to service firms as well. The best example of how mass customization can be applied to service, in which I can think of, would be Dell computers. The production process from order to delivery is managed electronically, which allows Dell to build computers very efficiently and their customers to know where their product is during each step of the process. The production process begins with the customer ordering the server and individual components, (over 50% are ordered via the Dell web site or a customized page created for business customers). This information is placed in a production queue that breaks out every component that is to be assembled into the server. The required inventory is then allotted to the assembly area to make sure that it is adequately queued. Dell partners with suppliers to provide them with the production pipeline, so they can have inventory readily available on the loading docks (that are connected to the factory floor). This allows Dell to maintain only two hours of actual inventory on the factory floor (Kepczyk, 2010).
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This note was uploaded on 01/18/2011 for the course BUS 201 taught by Professor Marybethwhite during the Spring '08 term at University of South Florida - Tampa.

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Individual DB - Ch 7 Mass customization of products has become a common approach in manufacturing organizations Discuss ways in which mass

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