Mass Customisation (Operations Management)

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4 Terms

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What is mass customisation?

A production process involving mass production techniques where the output is tailored to the requirements of the customer

2
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How is Dell a classic example of mass customisation?

They pioneered custom-configured computers, whereby customers pick their computer's processor, memory, storage, and other equipment when purchasing on Dell’s website

3
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What are the potential benefits of mass customisation?

  • Low unit costs combined with personalised products = higher added value

  • Can charge a premium price

  • Method of product differentiation

  • Builds brand strength and loyalty

  • Lower inventory (cash flow benefit)

4
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What do businesses need to make mass customisation work?

  • A lean and efficient supply chain = close integration and collaboration with suppliers

  • Effective use of digital technology

  • Flexible production capacity

  • A high degree of automation

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