Case Study:

IN SEARCH OF QUALITY IN QUANTITY

The spread of mass customisation techniques across industries is starting to spell an end to the old production line. Mass production using flow production, based on standardised parts and processes, was introduced by Henry Ford early in the twentieth century. It greatly cut the costs of making each unit, but the main drawback was that all goods coming off a single production line were identical. In mass customisation the line can be varied to make different products, either individually or in small batches. Caterpillar, the US supplier of construction and power equipment, says that virtually all of the 11000 engines it makes each year are different. The variation comes from changes to 10-20% of the 1000 parts that go into each product. Software for the engine controls can also be varied. Cessna makes a wide range of general aviation aircraft from the single-engine piston to business jets on several different production lines. Of the 17 different models produced last year, Cessna produced and delivered over 1200 planes to customers. By producing a variety of models, Cessna is able to market its products to a much wider range of customers, meeting their individual requirements and adding higher value to the components used. Mass customization needs:

advanced and flexible capital equipment, e.g. car paint robots can now paint vehicles in 'one-off' colors in between lines of cars in standard colors

skilled and well-trained workers able to operate this machinery and adapt it to make different products product designs that contain as many standardized parts as possible in different versions

reliable suppliers able to supply slight variations in standard parts or components.

The consultancy Strategic Horizons says mass customization has increased greatly in the last few years. 'Some time this century mass customization will be the main form of manufacturing.'

Question:

Evaluate whether mass customization is a production method that should be adopted by all business. (20marks)