Mass Customisation (Operations Management)

What is mass customisation?

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

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

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)

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