Mass Customization Implementation. Torsten Lihra and Urs Buehlmann

Transcription

1 Mass Customization Implementation Torsten Lihra and Urs Buehlmann Mass Customization for the Wood Products Industry Regional Wood Products Consortium workshop, April and May 2011

2 Overview! Mass customization! Mass customization implementation challenges! Mass customization implementation! The real challenge! Summary Mass Customization Implementation 2

3 Mass Customization Implementation 3

4 Levels of MC Distribution Retailing Product Value Chain Assembling Packaging Comp. Mfg. Engineering Supply Increasing Levels of MC Design 4

5 Challenges Implementation of MC is challenging! Make-to-order (MTO)! Small batch sizes! Supply chain management! IT! Marketing! Customer interaction! 5

6 MC in different industries! Architectural Woodwork! Moulding! Flooring! Wood Components! Nonupholstered household furniture! Upholstered household furniture! Office furniture! Kitchen cabinets 6

7 Mass Customization Implementation 18

8 Manufacturer perception of MC implementation Interviews with 22 furniture manufacturers on MC implementation issues! USA, Canada, Germany! Top management! Companies of different sizes! Companies that have implemented MC 19

9 Manufacturer perception of MC implementation Future competitiveness offer more personnalisation improve services target niche markets reduce shipping delais reduce production costs improve branding? offer better buying experience automate improve retailer relationship target up scale furniture improve managements skills innovate develop industry clusters create evolutive furniture be consumer oriented source world wide respondents (%) 20

10 Manufacturer perception of MC implementation MC barriers and limits! Internal barriers! company culture! industrial engineering skills! External barriers! lack of retailer support! MC limits! consumers design abilities 21

11 Manufacturer perception of MC implementation Manufacturers always did the initial step to MC in a try and error mode Desired consumer involvement express needs chose options use Internet configur products design products respondents (%) 22

12 Manufacturer perception of MC implementation colors dimensions styles hardware configuration item choice mouldings price points materials evolutive furniture design accessories MC level offered by manufacturers respondents (%) 23

13 Manufacturer perception of MC implementation MC implementation challenges supply chain management set-up time reduction batch size reduction cycle time reduction IT production flexibility company culture Integration of sales, marketing and production labour flexibility industrial engineering logistics storage space product development time process automation product standardization sales forecast accuracy respondents (%) 24

14 !"#$%"$&'()*'*+%$,-.$ /+0*12%3+0&+4$#53%$6"7$31*$0"&+4$ Mass Customization Implementation 25

15 Product design Traditional... American style furniture Simplified... European style furniture 26

16 Evolution of processes 27

17 Software integration 28

18 Point of sale 29

19 Order entry 30

20 Product configuration 31

21 Data generation 32

22 Supply chain activation 33

23 Scheduling 34

24 Product data generation 35

25 Execution / control 36

26 Shipping 37

27 ,-$&'()*'*+%38"+.$ 9*30*125&($3+0$:53+4*$ Mass Customization Implementation 38

28 Implementation challenges Things to get right:! Company culture! Supply chain! Production processes! IT! set-up time! batch sizes! cycle time! production flexibility Mass Customization Implementation 39

29 Leadership 40

30 Supply chain and production processes All the challenges in the production processes, e.g.,! supply chain management! set-up time reductions! batch size reductions! cycle time reductions! production flexibility increases are addressed with Lean. Mass Customization Implementation 41

31 Lean building blocks Lean transformation Mass Customization Implementation 42

32 ,-$&'()*'*+%38"+$ Mass Customization Implementation 43

33 Mass customization requires long-term commitment, knowledge and a holistic approach! Product design and engineering! Supply chain management! Need production flexibility! IT Summary manufacturer view! low set-up times! small batch sizes! short cycle times Mass Customization Implementation 45