IE597b-Hong-1 - Mass Customization, Product Platforms, and...

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Unformatted text preview: Mass Customization, Product Platforms, and Design for Sustainability Yoo-Suk Hong <yhong@snu.ac.kr> Tel: (02) 880-9070 Dept of Industrial Engineering Seoul National University Abstract This talk aims to provide a basic understanding of mass customization. Staring with a historical background relating to the birth of mass customization, the shift of paradigm leading to the necessity of mass-customized products is discussed with various example cases. A general guideline for implementing mass customization is also outlined. The platform-based product development, which was introduced as one of the viable ways for the implementation of mass customization, is explained and the basic research issues in platform design are discussed based on the concept of product architecture. Some research efforts being done by the authors research group in this context are briefly outlined. Page 1 Customer-Centered Enterprise The most creative thing a person will do 20 years from now is to be a very creative consumer . . . Namely, youll be sitting there doing things like designing a suit of clothes for yourself or making modifications to a standard design, so the computers can cut one for you by laser and sew it together for you by NC machine. . . Alvin Toffler, The Third Wave , 1980 It is the customer who determines what a business is. Peter F. Drucker, The Practice of Management , 1954 Introduction to Product Engineering Page 2, Yoo-Suk Hong c circlecopyrt History of Mass Production Adam Smith & James Watt (mid-18C) Thomas Jefferson & Eli Whitney (end of 18C) Andrew Carnegie (mid-19C) Scale Henri Ford (early 20C) Speed Frederick Taylor (early 20C) Efficiency Golden days of America (1950-60s) Japanese triumph (1970-80s) Seeking new paradigms (1990s) Introduction to Product Engineering Page 3, Yoo-Suk Hong c circlecopyrt Characteristics of Mass Production Interchangeable parts Division of labor Flow Production Focus on low costs and low prices Economies of scale Product Standardization Degree of specialization Focus on operational efficiency Vertical Integration Introduction to Product Engineering Page 4, Yoo-Suk Hong c circlecopyrt Dynamics in a Mass-Production Paradigm New Products Mass Production Process Long Product Development Cycles Long Product Life Cycles Stable Demand Homogeneous Market Low-Cost, Consistent-Quality Standardized Products Process Technology Product Technology Ignore Niches Inventory Adjustments R R R Introduction to Product Engineering Page 5, Yoo-Suk Hong c circlecopyrt The Lost Paradigm Mass Production Crisis Market fragmentation Customers continual need for differentiation Need for cost reduction due to fierce competition Technology change and the reduced product life cycle Market turbulence: Instability, Uncertainty, Uncontrollable market environment Impossible to control markets based on stable demand any more...
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This note was uploaded on 03/01/2011 for the course IE 597b at Pennsylvania State University, University Park.

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IE597b-Hong-1 - Mass Customization, Product Platforms, and...

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