Variety Steering Concept for Mass Customization

In this paper we make the distinction between subjective and objective customer needs. The subjective needs are the individually realized and articulated requirements, whereas the objective needs are the real ones perceived by a fictive neutral perspective. We show that variety in mass customization has to be orientated on the objective needs. In order to help mass customizers better evaluate the degree to which they can fulfill the objective needs as well as their internal complexity level we have developed a key metrics system model. We also present a conceptual application showing how to use this model to support decision making related to the introduction or reduction of product variants.Variety Management; Complexity; Production/Operations Management

Modularity and Delayed Product Differentiation in Assemble-to-order Systems: Analysis and Extensions from a Complexity Perspective

The paper assumes a product design around modular architectures and discusses the suitability of the principle of delayed product differentiation in assemble-to-order environments. We demonstrate that this principle does not enable one to make optimal decisions concerning how variety should proliferate in the assembly process. Therefore, we propose to complement this principle in that we additionally consider the variety induced complexity throughout the assembly process. The weighted Shannon entropy is proposed as a measure for the evaluation of this complexity. Our results show that the delayed product differentiation principle is reliable when the selection probabilities of module variants at each assembly stage are equal and the pace at which value is added in the whole assembly process is constant. Otherwise, the proposed measure provides different results. Furthermore, the entropy measure provides interesting clues concerning eventual reversals of assembly sequences and supports decisions regarding what modules in an assembly stage could be substituted by a common module.modularity; complexity; ATO; delayed product differentiation

Adopting Product Modularity in House Building to Support Mass Customisation

Product modularity is a concept that can contribute to the improvement of product quality and production efficiency in house-building. However, there is a lack of consensus in the literature on the concepts that define product modularity. Furthermore, little attention has been given to the differences between building construction and manufacturing, for which product modularity was originally developed. This research aims to address that gap by adapting the conceptualization of product modularity so that it can effectively be used in the house-building industry. The methodological approach adopted in this study was Design Science Research, and two empirical studies were carried out on construction companies based in Brazil and in the U.K. Those studies are used to illustrate the applicability and utility of the proposed concepts and tools. Research findings indicate that the adoption of product modularity concepts results in benefits to both traditional construction technologies and prefabricated building systems

Key Metrics System for Variety Steering in Mass Customization

The main goal of this paper is to provide a key metrics system for variety steering in mass customization. We distinguish between objective and subjective customer needs. The subjective needs are the individually realized and articulated requirements, whereas the objective needs are the real ones perceived by a fictive neutral perspective. We show that variety in mass customization has to be orientated on the objective needs. In order to help mass customizers better evaluate the degree to which they can fulfill the objective needs as well as their internal complexity level, we have developed a key metrics system model. We also present a conceptual application showing how to use this model to support decision making related to the introduction or reduction of product variants.Variety Management; Complexity; Production/Operations Management

Dynamic Multi-Agent Based Variety Formation and Steering in Mass Customization

Large product variety in mass customization involves a high internal complexity level inside a company’s operations, as well as a high external complexity level from a customer’s perspective. To cope with both complexity problems, an information system based on agent technology is able to be identified as a suitable solution approach. The mass customized products are assumed to be based on a modular architecture and each module variant is associated with an autonomous rational agent. Agents have to compete with each other in order to join coalitions representing salable product variants which suit real customers’ requirements. The negotiation process is based on a market mechanism supported by the target costing concept and a Dutch auction. Furthermore, in order to integrate the multi-agent system in the existing information system landscape of the mass customizer, a technical architecture is proposed and a scenario depicting the main communication steps is specified.Product Configuration, Mass Customization, Variety Formation and Steering, Multi Agent System

Variety Management in Assemble-to-Order Supply Chains

Assemble-to-order refers to a supply chain strategy in which products are not assembled until customer order arrives. It is based on the so-called form postponement that is to hold components at a generic form and to delay the point of product differentiation. The performance of an assem-ble-to-order supply chain depends on two main dimensions, which are responsiveness and achievement level of scale economies. Responsiveness refers to the capability of fulfilling customer requirements in a fast-paced manner, whereas the achievement of scale economies reflects the degree of operations efficiency. Assemble-to-order supply chains induce high product variety, which has adverse effects on performance. We use demand volumes as a proxy for scale economies and lead times as a proxy for responsiveness. A matrix that consists of both dimensions can be defined, in which we distinguish between short/long lead times and low/high demand volumes. This matrix is called performance matrix. On the other hand, the consequence that results from product variety is a high demand variability of end products, which also affects the demand variability of components. An analysis of component demand variability enables one to identify the components with low/high demand variability. These components can further be classified into supplied and in-house made components. Thus, a second matrix (called component matrix) with two dimensions, namely variability (low/high) and supply source (in-house/supplier) can be defined. Due to the supply source dimension in the component matrix, the supply chain perspective is also taken into ac-count. The combination of both matrixes into a single one provides the performance/component matrix for assemble-to-order supply chains. To use the final matrix, it is necessary to compute lead times, demand volumes and demand variability of the supplied and in-house made components. By plotting the components in the matrix, one can determine the problems induced by variety. In order to improve the performance of the assemble-to-order supply chain, the implementation of variety management strategies is necessary. The identified strategies are: commonality, component families, modularity, and platforms. Based on the performance/component matrix, we discuss how these strategies or a combination of them can contribute to derive recommendations that aim to alleviate variety impacts on the as-semble-to-order supply chain.Assemble-to-order; Supply Chain Management; Variety Management

A Framework for Understanding the Interdependencies between Mass Customization and Complexity

Mass customization is a business strategy that aims at satisfying individual customer needs, nearly with mass production efficiency. It induces a high complexity level because of various customer requirements and a steadily changing environment. However, mass customization has some potential to reduce complexity. The interdependencies between mass customization and complexity are discussed in order to demonstrate that mass customization is not just an oxymoron linking two opposite production concepts, but a business strategy that contributes towards reaching a competitive advantage. On the one hand, mass customization increases the production program, manufacturing and configuration complexities. On the other hand, it contributes to reduce complexity at the levels of order taking process, product and inventories. The main results attained through the analysis are integrated in a comprehensive framework that shows the complexity increasing and complexity decreasing aspects due to mass customization.Mass Customization; Complexity Management; Product Variety

Independent tailoring of dose and drug release via a modularized product design concept for mass customization

Independent individualization of multiple product attributes, such as dose and drug release, is a crucial overarching requirement of pharmaceutical products for individualized therapy as is the unified integration of individualized product design with the processes and production that drive patient access to such therapy. Individualization intrinsically demands a marked increase in the number of product variants to suit smaller, more stratified patient populations. One established design strategy to provide enhanced product variety is product modularization. Despite existing customized and/or modular product design concepts, multifunctional individualization in an integrated manner is still strikingly absent in pharma. Consequently, this study aims to demonstrate multifunctional individualization through a modular product design capable of providing an increased variety of release profiles independent of dose and dosage form size. To further exhibit that increased product variety is attainable even with a low degree of product modularity, the modular design was based upon a fixed target dosage form size of approximately 200 mm3 comprising two modules, approximately 100 mm3 each. Each module contained a melt-extruded and molded formulation of 40% w/w metoprolol succinate in a PEG1500 and Kollidon\uae VA64 erodible hydrophilic matrix surrounded by polylactic acid and/or polyvinyl acetate as additional release rate-controlling polymers. Drug release testing confirmed the generation of predictable, combined drug release kinetics for dosage forms, independent of dose, based on a product’s constituent modules and enhanced product variety through a minimum of six dosage form release profiles from only three module variants. Based on these initial results, the potential of the reconfigurable modular product design concept is discussed for unified integration into a pharmaceutical mass customization/mass personalization context

Data-driven through-life costing to support product lifecycle management solutions in innovative product development

Innovative product usually refers to product that comprises of creativity and new ideas. In the development of such a new product, there is often a lack of historical knowledge and data available to be used to perform cost estimation accurately. This is due to the fact that traditional cost estimation methods are used to predict costs only after a product model has been built, and not at an early design stage when there is little data and information available. In light of this, original equipment manufacturers are also facing critical challenges of becoming globally competitive and increasing demands from customer for continuous innovation. To alleviate these situations this research has identified a new approach to cost modelling with the inclusion of product lifecycle management solutions to address innovative product development.The aim of this paper, therefore, is to discuss methods of developing an extended-enterprise data-driven through-life cost estimating method for innovative product development