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The IUP Journal of Operations Management :
Customization Index: Evaluating the Flexibility of Operations in a Mass Customization Environment
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Mass customization efforts must be carried out in a manner that does not significantly reduce operational efficiency. A key to this objective is deciding which manufacturing processes can be used to customize a product. This paper develops and illustrates a quantitative index used to evaluate process flexibility. The index is used by process designers as a guide to standardization and customization strategies. This paper focuses on the ratios of Tooling Cost (TC) and tool life, and Setup Cost (SC) and production batch size as factors for the Customization Index (CI). A single value is computed as the CI. This paper provides a quantitative template for categorizing processes as flexible or inflexible. This categorization can then be used to determine the appropriate manufacturing processes for mass customization modifications. The proposed methodology can be used by process designers to classify manufacturing processes as targets for standardization efforts or targets for customization efforts. This paper discusses the CI as applied to the processes to manufacture an aluminum electric motor endplate. The CI was used by a large electric motor manufacturer.

 
 

Mass customization is a business strategy, which seeks to satisfy customer's unique requirements and at the same time capitalize on the low cost efficiencies associated with the techniques of mass production (Coronado et al., 2004). Current trends in customer expectations and increased global competition is making mass customization a necessity for some industries (Kotha, 1995; and Duray, 1997). If customization is carried out in a manner that drastically reduces operating efficiency and raises cost, it creates a distinct disadvantage for the supplier. This may be acceptable for a craft manufacturer that produces low volume customized products at high prices, but it does not satisfy the definition of mass customization (Karlsson, 2002; and MacCarthy, 2003). In a true mass customization environment, products and processes are designed to allow customization with minimal added time, effort, and cost. A fundamental operational question that must be answered when considering mass customization is: At what process step in manufacturing should customization take place? Analysis and classification of manufacturing processes as flexible or inflexible can help answer this question (Anderson, 2003). Flexibility is considered a crucial attribute to be competitive in a turbulent marketplace (Upton, 1994). Business managers must develop metrics that accurately assess an organization's performance (Youngblood and Collins, 2003). A quantifiable index is needed to help decision makers classify processes as flexible or inflexible. This classification will help dictate the appropriate design strategy for each process. This research develops an index that provides a quantifiable measure of process flexibility. The index is used to guide the design strategy associated with the process. This technique is illustrated in this paper using the processes to manufacture an electric motor endplate.

Several authors have discussed the role of flexibility in manufacturing processes (Hyun and Ahn, 1992; Vokurka and O'Leary-Kelly 2000; and Aprile et al., 2005). A manufacturing process that is capable of managing rapid product changes without disruptions to the operation is poised to compete in markets where satisfying unique customer driven requirements is essential (Anderson, 2003). Processes characterized by hard tooling or long setup times are not good targets for customization operations. Products from these inflexible processes should be designed in such a manner that they are versatile for many different end applications. This may be achieved by a product that can be used `as-is' in various applications, or a product that has built-in features that can be altered at subsequent operations to make it reconfigurable. Some experts suggest that the level of modularity of a product may be its most important feature (Ulrich and Eppinger, 1995). Examples of inflexible processes are injection molding, casting, stamping and extruding.

 
 

Operations Management Journal, Customization Index, Mass Customization Environment, Tooling Cost, Setup Cost, Computer Numerically Controlled, CNC, Electric Motor Endplate, Mass Production, Design Strategy, Customer Driven Requirements, Injection Molding, Stamping, Extruding.