Mass Customization - The New Paradigm in Production

Mass Customization is the new paradigm that replaces mass production, which is no longer suitable for today’s turbulent markets, growing product variety, and opportunities for e-commerce. Mass customization proactively manages product variety in the environment of rapidly evolving markets and products, many niche markets, and individually customized products sold through stores or over the internet e-commerce system.

Mass customizes can customize products quickly for individual customers or for niche markets at better than mass production efficiency and speed. Using the same principles, mass customizes can build to order both customized products and standard products without forecasts, inventory, or purchasing delays.


Mass customization is the new paradigm in manufacturing whereby companies personalize or customize products or services for individuals at a mass production price. (Davis, 1987) (Cited in Pines, 1993). It is a flexible process and structure of the organization to mass produce variety of products designed specifically to meet customers’ requirements.

Today, advance technology in production enables a firm to produce products customized based on the demand of the customers in bulk. The advance of technology changed customer standards of living by the increase demand of personalized products that that suits their own preference, taste and style. Hence, customers can only be satisfied when the products are customized to meet their requirements. The living standards of the customers will only improve when their requirements are met. (Zhan, 2009)

In recent years, enterprises gained tremendous competition advantages by implementing large-scale customization. Some experts predicted that large-scale customization would gradually replace traditional mass production and become the manufacturing mainstream mode. (Zhan, 2009) Thus, making companies not only having a cost reduction avenue and achieve economic of scale. With that, companies can also increase wages of their staffs which will eventually increase the standard of living of the staffs and put a lid on inflation.

Interactive technologies such as internet, allows customers to interact with the producers and specify the unique requirements which are then manufactured by the automated system. (Bapna et all, 2000) Companies such as Dell utilize e-commerce system from which their website enables customers to customize their own laptops to their preferences then order and make payment online. The system will then list down the specific requirements of the customer and assemble the laptop, then deliver to the respective customer (Kepczyk, 2008)

E-commerce system will benefit both the customer and Dell as the manufacturer. Customers will advantage from buying a products that meets their requirement efficiently, while Dell achieve not only economic of scale through mass customization, but also operational cost reduction in distribution system. Therefore, e-commerce plays a big role in distributing customized products to the end customers directly.

Moreover, mass customization can also become a competitive edge in manufacturing technique. Mass customization allows producers to reduce waste and cost of production that does not meet the customers demand. One would argue that market forecasting can reduce the risk. But as the society demand and preferences changes, mass customization is the solution to produce in large volume at the same time meeting the customers demand. (Blecker and Friedrich, 2006) This manufacturing technique is proven the most efficient approach for manufacturers such as Toyota and Dell.

Mass customization is the new paradigm in manufacturing whereby companies personalize or customize products or services for individuals at a mass production price. (Davis, 1987) (Cited in Pines, 1993). It is a flexible process and structure of the organization to mass produce variety of products designed specifically to meet customers’ requirements.

Today, advance technology in production enables a firm to produce products customized based on the demand of the customers in bulk. The advance of technology changed customer standards of living by the increase demand of personalized products that that suits their own preference, taste and style. Hence, customers can only be satisfied when the products are customized to meet their requirements. The living standards of the customers will only improve when their requirements are met. (Zhan, 2009)

In recent years, enterprises gained tremendous competition advantages by implementing large-scale customization. Some experts predicted that large-scale customization would gradually replace traditional mass production and become the manufacturing mainstream mode. (Zhan, 2009) Thus, making companies not only having a cost reduction avenue and achieve economic of scale. With that, companies can also increase wages of their staffs which will eventually increase the standard of living of the staffs and put a lid on inflation.

Interactive technologies such as internet, allows customers to interact with the producers and specify the unique requirements which are then manufactured by the automated system. (Bapna et all, 2000) Companies such as Dell utilize e-commerce system from which their website enables customers to customize their own laptops to their preferences then order and make payment online. The system will then list down the specific requirements of the customer and assemble the laptop, then deliver to the respective customer (Kepczyk, 2008)

E-commerce system will benefit both the customer and Dell as the manufacturer. Customers will advantage from buying a products that meets their requirement efficiently, while Dell achieve not only economic of scale through mass customization, but also operational cost reduction in distribution system. Therefore, e-commerce plays a big role in distributing customized products to the end customers directly.

Moreover, mass customization can also become a competitive edge in manufacturing technique. Mass customization allows producers to reduce waste and cost of production that does not meet the customers demand. One would argue that market forecasting can reduce the risk. But as the society demand and preferences changes, mass customization is the solution to produce in large volume at the same time meeting the customers demand. (Blecker and Friedrich, 2006) This manufacturing technique is proven the most efficient approach for manufacturers such as Toyota and Dell.

In aircraft manufacturing industry, mass customization is also practiced. Aircraft manufacturers such as Airbus and Boeing manifest different types of variety and customization in producing their finish goods. Hence, these manufacturers encounter challenges in producing customized products.

Gilmore and Pine (1997) identify four product perspective customization strategies; collaborative, cosmetic, adaptive and transparent. (Appendix 2) Hence, aircraft manufacturing falls under the collaborative customization category. In collaborative customization, the firm conducts a dialogue with individual customers to help them articulate their needs, to identify the precise offering that fulfills those needs, and to make customized products for them. (Gilmore and Pine, 1997) A customer defines the needs, wants, requirements and specification of the aircraft, only then the manufacturer assembles the products.

For instant, when Malaysia Airlines orders a new Airbus A380, the Airbus Company will ask the specifications, advance features, additional needs and preferences as well as the painting of the aircraft exterior. Thus, making the production of the aircraft is collaborative between the customer’s specific request and the company.
Some challenges of the product perspective are the miscommunication and misdirection from the respective customer, making the producer to mistakenly customize the product. Hence, a challenge for the manufacturer is to match the product customized exactly with the specification required.

While the product perspective oversees the manifestations of variety and customized product, the process perspective looks at where in the production value chain the company implements the customization (Comstock et al, 2004).
Generally, the process perspective is either to make to stock or (push system) or make to order (pull system). Make to stock (MTS) is when manufacture products for stock based on demand forecasts, which can be regarded as push-type production. MTS has been required to prevent opportunity loss due to stock out. While Make to order (MTO) is when manufactures starts production once the customer places the order (Anderson, 2004).

Aircraft industry as mentioned above only manufactures the aircrafts once an order of a specific aircraft is accepted from the customers. Thus, making the aircraft manufacturers practice MTO or make to order.
A big challenge in make to order or pull manufacturing system is the time gap between the order and the actual delivery of the finished good. It is a huge challenge for aircraft manufacturers to meet the promised time of delivery to the airline industry.

Lastly, mass customization must also follow the system perspective whereby it select enablers that makes customized product variety and customization possible are the focus. Zipkin (2001) outlined three main elements of mass customization that are connected by powerful communication links. They are; customer elicitation, process flexibility and logistics.

These communication links are the system perspective that aids makes mass customization possible. Some to mention are systems such as computer aided design (CAD), supply chain management system (SCM) and even customer relationship management system (CRM). These systems, including the e-commerce system acts as intermediary that links the customers to producers are those that enable mass customization to work at a specific point.

Yet, system perspective also having the challenge of system failures that might occur to the automated system they used in providing the customized product. Thus, making companies to always enhance and upgrade their system in order to avoid system failures.

Anderson (2004) argued that there are three ways to customize products: modular, adjustable, and dimensional customization. Modular customization usually modules are literally building blocks that can customize a product by assembling various combinations of modules. Examples of modules would include many components in automobiles such as engines, transmissions, audio equipment and tire.
Adjustable customization on the other hand is a reversible way to customize products. Adjustments could be infinitely variable. Discrete adjustments, or configurations, would represent few choices, such as those provided by electronic switches, jumpers, cables, or discrete software.

While dimensional customization, involves a permanent cutting-to-fit, mixing, or tailoring. Dimensional customization could be infinite or have a selection of discrete choices. Examples of infinite dimensional customization would include the tailoring of clothing and grinding eyeglasses.

Overseeing that there are many methods of product customization, this shows that mass customization has the potential to create or develop new products to be offered to the market. Hence, through mass customization, more varieties and featured product evolves and are created by manufacturers.

A good example is the giant A380 Airbus aircraft that was designed after customization of aircrafts to accommodate more passengers. Airbus A380 is right now the largest passenger plane ever made in the world to accommodate long haul flights that enables airlines to save on petroleum cost. The invention of the new airbus is a process of customization both modular and adjustable.Therefore, it can be concluded that mass customization has drive new product development and product creation to exist and enhance the creation of new products that will accommodate the changing needs and preferences of the customers.

In conclusion, mass customization has become a new paradigm in the manufacturing industry which will shift mass production as it is proven more efficient and effective in both reducing cost and ensuring profitability of certain product.

Hence, with the aid of e-commerce and advance technology, a complex and specified customization can easily be done by producers by enhancing the information flow in the supply chain management. Through disintermediation, producers not only saves cost of product distribution, but also able to meet the exact demand and interact with their respective customers.

Furthermore, mass customization not only beneficial to the producers extends, but also to the customers as they achieve a higher degree of satisfaction through the products that are customized to meet their personal requirements. Thus, it will also drive the creation of new products as the demand of customers’ changes.