Download e-book for kindle: Information and management systems for product customization by Thorsten Blecker; et al

By Thorsten Blecker; et al

ISBN-10: 0387233474

ISBN-13: 9780387233475

ISBN-10: 0387233482

ISBN-13: 9780387233482

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Furthermore, the individual income was equitable and customers had similar needs and requirements. Mass production provides a mass market with goods at a consistent quality and affordable prices. It builds upon main principals that include among others: economies of scale, product standardization, specialization, division of labor, hierarchical organization, and vertical integration. The main goal is to develop, manufacture, market and deliver goods and services at prices which 10 Chapter 2 are low enough to where nearly everyone is able to afford them.

50) graphically shows the importance of the reduction of set up costs in order to move the Economic Order Quantity (EOQ) towards a lot size of one, which allows the company to efficiently handle more product variety. Chapter 2 38 Reprinted with permission of Harvard Business School Press. Copyright (c) 1993 by the Harvard Business School Publishing Corporation; all rights reserved. Figure 2-13. The effect of reducing setup costs on economic order quantities (Adapted from: Pine 1993, p. 51) When producing with inflexible manufacturing systems, EOQ is the point at which the increasing handling and storage costs begin to outweigh the decreasing setup cost, which yields the lowest total cost per unit (left side of figure 2-13).

The analysis of the different models with respect to the exclusiveness between strategies reveals that the strategies identified by Piller (2000) are not mutually exclusive. This basically concerns the point-of-delivery customization strategy which appears as a particular case of the customization-standardization mix because point-of-delivery customization can be seen as a form of customization that occurs at the last stage of the value chain. In addition, the customization-standardization mix can be seen as a particular case of modular product architectures.

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Information and management systems for product customization by Thorsten Blecker; et al


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