ABSTRACTS
MCPC2014
Aalborg University, Denmark
Department of Mechanical and Manufacturing Engineering
The Faculty of Engineering and Science
February 2014
Abstract MCPC2014
© Department of Mechanical and Manufacturing Engineering
Typesetting: Times New Roman
Limited edition, 135 copies
ISBN 87-91200-70-9
Editors:
Kjeld Nielsen, Thomas Ditlev Brunoe, Stig B. Taps, Kaj A. Joergensen
Print:
UNIprint, Aalborg University, Denmark
II
Preface
The first MCPC conference was hosted by Hong Kong University of Science and
Technology in 2001. Since then the MCPC conference has grown to become the primary conference for presenting and discussing current issues and recent developments
within the fields of Mass Customization, Personalization, and Customer Co-Creation.
Since 2001, the conference has been hosted by University of Technology Munich
(2003), Hong Kong University of Science and Technology (2005), M.I.T. (2007),
Aalto University (2009) and UC Berkeley (2011). The 2014 MCPC conference, the
seventh in the series, for which the contributions are presented in this book, is hosted
by Aalborg University.
The MCPC 2014 is a multi‐track conference featuring a combination of high profile keynotes with expert talks, panel discussions, paper sessions, workshops, receptions, and much more. While it is devoted to sharing and discussing the latest research
in the field, the MCPC conference has a strong focus on real life applications. Since
its beginning, the MCPC conference has had an equal share of participants, practitioners and academics/researchers. This makes the MCPC conference truly unique
among many conferences. It strives to connect MCPC thinkers, first movers, entrepreneurs, technology developers, and researchers with people applying these strategies in practice.
Twenty years ago Mass Customization was acknowledged as the ”New Frontier in
Business Competition”. Ever since, industry has been applying the concept and researchers have developed the topic into a well-established research area and businesses have formed new strategies. More knowledge, methods and technologies are available now than ever before. Along with general Mass Customization topics, this conference addresses Mass Customization from a historical perspective, looking at both
mass customization in the past 20 years and towards the new frontiers in the 20 years
to come.
The MCPC 2014 conference wants to engage academics, business leaders, and
consultants in fundamental debates through a set of plenary presentations, workshops,
discussion panels, and paper presentations. Continuing our tradition, we invite contri-
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butions from a wide range of specialists. MCPC 2014 is looking for contributions in
cutting-edge research, as well as insightful advances in industrial practice in key areas.
This book presents the abstracts of MCPC2014 with research from the worldwide
MCPC community and industry partners, bringing together the new thoughts and
results from various disciplines within the topics:
Academic tracks
 20 Years of Mass Customization – Reflections
 Choice Navigation
 Product Modelling
 Solution Space Development
 Manufacturing Systems for MCPC
 MCPC Applications
 Open Innovation
Industrial tracks
 MC in Project Oriented Industries
 MC in Engineer-to-Order Industries
 MC in Volume Oriented Industries
 MC in Consumer Oriented Industries
The organizing committee would like to thank the MCPC community for the support for this conference, hoping that all participants, academic and industrial, will
benefit from the presentations and discussions.
Aalborg, February 2014
Kjeld Nielsen, Thomas Ditlev Brunoe, Stig B. Taps, Kaj A. Joergensen
IV
Table of Contents
Keynote Speakers .................................................................................................... 1
1.1
PILLER: THE PAST 20 YEARS OF MC RESEARCH - AND WHAT MAY BE
COMING UP IN THE NEXT TWO DECADES ...................................................... 3
1.2
1.3
1.4
HUGHES: OPEL ADAM. ONE CAR, A MILLION POSSIBILITIES..................... 5
HADAR: MASS CUSTOMIZATION TECHNOLOGY ENABLING CONCEPTS ...... 7
PINE: INDIVIDUAL CUSTOMERS: THE LIFEBLOOD OF YOUR BUSINESS ....... 9
Industry Track Speakers ...................................................................................... 11
INDUSTRY SESSION 1: ............................................................................................... 13
MASS CUSTOMIZATION IN VOUME ORIENTED INDUSTRIES ...................................... 13
2.1
PRODUCT ARCHITECTURES AND REQUIREMENTS ENGINEERING –
ENABLERS FOR EFFECTIVE VARIANT CREATION. ....................................... 14
2.2
VESTAS, WIND - IT MEANS THE WORLD TO US. .......................................... 15
2.3
THE FUTURE IS COMING – ARE WE READY FOR IT AT THE LEGO
GROUP? .................................................................................................... 16
2.4
PROCESS MODELLING – A WAY TO MANAGE WORKFLOWS IN THE
QUOTE AND ORDER PROCESS ..................................................................... 17
INDUSTRY SESSION 2: ............................................................................................... 19
MC IN CONSUMER ORIENTED INDUSTRIES .............................................................. 19
2.5
FUTURE CHALLENGES OF INDUSTRIAL PRODUCT CONFIGURATION ........... 20
2.6
MASS CUSTOMIZATION IN THE BELGIAN TEXTILE INDUSTRY ................... 21
2.7
SMART FACTORY – SMART SKIS ................................................................. 22
2.8
MAKING THE WORLD A BETTER PLACE TO SIT............................................ 23
INDUSTRY SESSION 3: ............................................................................................... 25
MC IN PROJECT ORIENTED INDUSTRIES ................................................................... 25
2.9
EFFICIENT CONFIGURATION PROGRAMMING AT FLS................................. 26
2.10
PARTIAL MODULARITY AND THE MODULE APPLICATION MATRIX ........... 27
2.11
MODULAR ENGINEERING AND MODULAR CONSTRUCTION ....................... 28
INDUSTRY SESSION 4: .............................................................................................. 29
MC IN ENGINEER-TO-ORDER INDUSTRIES ............................................................... 29
2.12
PLATFORM DESIGN FOR SHORTENING DELIVERY TIME. ............................. 30
2.13
PRODUCT EXPERIENCE DELIVERY VIA 3D IMAGING ................................ 31
2.14
EXPERIENCE FROM CONFIGURATION OF SUB STATIONS AT DANFOSS ........ 33
2.15
CONFIGURATION LIFECYCLE MANAGEMENT ............................................ 34
Academic Tracks Speakers .................................................................................. 35
3.1
WEB-BASED SALES CONFIGURATOR CAPABILITIES TO INCREASE THE
VALUE OF MASS CUSTOMIZATION ............................................................ 37
V
3.2
UNDERSTANDING
THE
MICRO-FOUNDATIONS
OF
MASS
CUSTOMIZATION ....................................................................................... 39
Special Session ....................................................................................................... 41
4.1
MASS CUSTOMIZATION AND SUSTAINABILITY .......................................... 43
Academic Sessions Presentations ......................................................................... 45
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8
5.9
5.10
5.11
5.12
5.13
5.14
5.15
5.16
5.17
5.18
5.19
VI
A BONDED EXPERIENCE: ‘VALUE CREATION AS THE CREATION OF AN
EXPERIENCE, WITHIN A BUSINESS RELATIONSHIP’ ..................................... 47
A CASE INVESTIGATION OF PRODUCT STRUCTURE COMPLEXITY IN
MASS CUSTOMIZATION USING A DATA MINING APPROACH ..................... 47
A METHOD FOR SPECIFICATION OF MULTI-VARIANT PRODUCTS
USING DEGREES OF FREEDOM OF SHAPE ATTRIBUTES IN PRODUCT
STRUCTURES............................................................................................. 47
A PROFILE CHART APPROACH FOR DEFINING THE SOLUTION SPACE
OF A PRODUCTION NETWORK ................................................................... 48
APPLYING THE 5 WHYS TO IDENTIFY ROT CAUSES TO NONCOMPLETIONS IN ON-SITE CONSTRUCTION ................................................ 48
CHALLENGES IN REQUEST MANAGEMENT – DEMAND MANAGEMENT
OF CUSTOMER-DRIVEN PRODUCT DEVELOPMENT ...................................... 49
CUSTOMIZATION ISSUES - A FOUR LEVEL CUSTOMIZATION MODEL ......... 49
DANISH PUBLIC CONSTRUCTION COUNSELLING SELECTION AND
ASSIGNMENT CRITERIA IN EUROPEAN TENDERING................................... 49
DESCRIBING PRODUCT VARIETY USING SET THEORY................................ 50
DELAYS IN THE APPAREL MANUFACTURING INDUSTRY’S
IMPLEMENTATION OF MASS CUSTOMIZATION .......................................... 50
DESIGNFUNDING: AN INQUIRY-TOOL FOR MASS CUSTOMIZATION........... 51
DOES CUSTOMER CO-CREATION REALLY PAY OFF? AN
INVESTIGATION INTO THE FIRM’S BENEFITS FROM CUSTOMER
INVOLVEMENT IN NEW PRODUCT AND SERVICE DEVELOPMENT ............. 51
DESIGN AND EVALUATION OF A RECONFIGURABLE MANUFACTURING
SYSTEM .................................................................................................... 51
DESIGN CONFIGURATOR REQUIREMENTS FOR IS INTEGRATION ............... 52
ENABLING FACILITATION OF MASS CUSTOMIZATION VIA
PARTNERING IN THE CONSTRUCTION INDUSTRY ....................................... 52
ENABLERS OF INNOVATION IN THE CONSTRUCTION MATERIAL
INDUSTRY ................................................................................................. 53
EXTENDING CONFIGURATION AND VALIDATION OF CUSTOMIZED
PRODUCTS BY IMPLICIT FEATURES IN VIRTUAL REALITY
ENVIRONMENTS ........................................................................................ 53
EXTENDING THE THEORETICAL FRAMEWORK OF MASS
CUSTOMIZATION: INITIAL AND ADAPTIVE SOLUTION SPACE
DEVELOPMENT FOR HIGH-VARIETY PRODUCTION ENVIRONMENTS ......... 54
FLEXIBLE LASER METAL CUTTING, AN INTRODUCTION TO THE
ROBOCUT LASER CUTTING TECHNIQUE ................................................ 54
5.20
5.21
5.22
5.23
5.24
5.25
5.26
5.27
5.28
5.29
5.30
5.31
5.32
5.33
5.34
5.35
5.36
5.37
5.38
5.39
5.40
5.41
5.42
5.43
FOOD CUSTOMIZATION – AN ANALYSIS OF PRODUCT
CONFIGURATORS IN THE FOOD INDUSTRY ................................................ 54
GENERATIVE DESIGN APPROACH FOR MODELLING OF LARGE DESIGN
SPACES ..................................................................................................... 55
HOW TO SQUEEZE A CONFIGURATOR INTO A HANDHELD DEVICE ............ 55
INNOTRACING:
INVESTIGATING
THE
MOMENT-TO-MOMENT
UNFOLDING OF LEADERSHIP, CREATIVITY AND INNOVATION .................. 56
IMPLEMENTATION OF BIM IN THE DANISH BUILDING SECTOR.................. 56
INTRODUCING MASS CUSTOMIZATION TO SMES IN FURNITURE
INDUSTRY: A CASE STUDY ....................................................................... 56
INTEGRATION SYSTEM OF MASS CUSTOMIZATION AND MASS
PRODUCTION AS A MARKET-ORIENTED PRODUCTION SYSTEM ................ 57
IS SUSTAINABLE MASS CUSTOMIZATION AN OXYMORON? AN
EMPIRICAL STUDY TO ANALYZE THE ENVIRONMENTAL IMPACTS OF A
MC BUSINESS MODEL ............................................................................... 57
LIVING LAB METHODOLOGY AS AN ASSESSMENT TOOL FOR MASS
CUSTOMIZATION ....................................................................................... 58
MAKING IT PERSONAL: RULES FOR SUCCESS IN PRODUCT
CUSTOMIZATION ....................................................................................... 58
MANAGING PROCESS CUSTOMISATION FOR THE CAPITAL GOODS
SECTOR. AN APPLICATION CASE STUDY .................................................. 59
MASS APPAREL TECHNOLOGY INTEGRATION AND DEVELOPMENT:
APPAREL MADE FOR YOU (AM4U©) ....................................................... 59
MASS-CUSTOMIZATION-SERVICE-ENCOUNTERS: THE INFLUENCE OF
THE CO-DESIGN PROCESS STRUCTURE ON PERFORMANCE ....................... 60
MASS CUSTOMIZATION AND PERFORMANCE ASSESSMENT:
OVERVIEW & RESEARCH DIRECTIONS ...................................................... 60
MASS CUSTOMIZATION MEASUREMENTS METRICS .................................. 60
MASS CUSTOMIZATION AS INNOVATION DRIVER OF INTERNATIONAL
COMPETITIVENESS
IN
PERIPHERAL
REGIONAL
SME
SUBCONTRACTORS ................................................................................... 61
MASS CUSTOMIZATION SYSTEMS ARE NOT ONE-SIZE-FITS-ALL ................. 61
MECHATRONIC BEHAVIOR ANALYSIS OF A CUSTOMIZED
MANUFACTURING CELL ........................................................................... 61
MODELLING AND ORGANISING CUSTOMER DRIVEN BUSINESS
PROCESS IN A MASS CUSTOMIZATION ENVIRONMENT .............................. 62
MULTIDISCIPLINARY PRODUCT DECOMPOSITION AND ANALYSIS
BASED ON DESIGN STRUCTURE MATRIX (DSM) MODELLING ..................... 62
OPEN INNOVATION: CREATING VALUE THROUGH CO-CREATION ............. 63
OPEN INNOVATION, CO-CREATION AND MASS CUSTOMISATION:
WHAT ROLE FOR 3D PRINTING PLATFORMS? ........................................... 63
PARADIGM IN THE 21ST CENTURY ............................................................ 63
PRODUCT, ORGANIZATIONAL AND PERFORMANCE EFFECTS OF
PRODUCT MODULARITY ........................................................................... 64
VII
5.44
5.45
5.46
5.47
5.48
5.49
5.50
VIII
PRODUCTION
AND
RESOURCE
SCHEDULING
IN
MASS
CUSTOMIZATION WITH DEPENDENT SETUP CONSIDERATION.................... 64
SCALING UP LOCAL AND INDIVIDUALIZED SOLUTIONS, CHALLENGING
EXISTING LOGIC ........................................................................................ 64
STRATEGIC CAPABILITIES TO MANAGE HIGH-VARIETY PRODUCTION
ENVIRONMENTS: THE ROLE OF UNDERLYING ACTIVITIES AND
ORGANIZATIONAL RESOURCES ................................................................. 65
THE IMPACT OF THE ARRANGEMENT OF USER INTERFACE ELEMENTS
ON CUSTOMER SATISFACTION IN THE CONFIGURATION PROCESS ............. 65
THE SERIES OF “P.L.A.Y”- A COMBINATION OF USER EXPERIENCE
DESIGN AND FOOTWEAR DESIGN.............................................................. 66
THE USE OF MODELLING METHODS FOR PRODUCT CONFIGURATION
IN INDUSTRIAL APPLICATIONS .................................................................. 66
UNDERSTANDING COMPLEX CONSTRUCTION SYSTEMS THROUGH
MODULARITY ........................................................................................... 67
ABSTRACTS
MCPC2014
IX
X
Keynote Speakers
Frank Piller, TIM Group, RWTH Aachen
Richard P Hughes, OPEL
Ronen Hadar, LEGO
B. Joseph Pine II, Strategic Horizons
2
1.1
The past 20 years of MC research - and what may be coming
up in the next two decades
Professor Frank Piller, TIM, RWTH Aachen, Germany
[email protected]
Bio. Frank T. Piller is a Co-Director of the MIT Smart Customization Group at the
MIT Design Lab, Massachusetts Institute of Technology, USA, and a chair professor
of management at the Technology & Innovation Management Group of RWTH Aachen University, Germany, one of Europe’s leading institutes of technology. Before
entering his recent position in Aachen, he worked at the MIT Sloan School of Management (2004-2007) and has been an associate professor of management at TUM
Business School, Technische Universitaet Muenchen.
Frequently quoted in The New York Times, The Economist, and Business Week,
amongst others, Frank is regarded as one of the leading experts on strategies for
customer-centric value creation, like mass customization, personalization, and innovation co-creation. His analysis of “Threadless” (co-authored with Susumu Ogawa),
an innovative crowdsourcing business model in the fashion industry, has been elected
as one of the Top-20 articles in MIT Sloan Management Review.
His group at RWTH Aachen is considered to be one of the globally leading research centers for open and distributed innovation and is supported by competitive
research grants of about US$1million annually. This research has been acknowledged, for example, by a finalist nomination for the "Innovating Innovation" Award
2013 by Harvard Business Review and McKinsey for their work on implementing
open innovation or the 2012 Global Co-Creation Award by PDMA (the largest professional association for product and service development) for their work on ideation
contests with senior citizens.
Based on his strong background of rigor and relevant research, Frank Piller is an
acclaimed speaker at management conferences and in executive education programs
around the world. He has delivered customized executive classes for many Global1000 companies, innovative startups and top business schools alike. He has been
elected twice “teacher of the year” (2001 and 2006) at TUM Business School and
was a recipient of the RWTH Teaching Award in 2010 and received an award for
innovation in teaching within the German Exzellenz initiative in 2012. As a member
of the board of directors or scientific advisers he works with a number of innovative
technology companies to turn his research into practice.
3
Abstract. What started with customized jeans, personalized sneakers, and engineer-to-order machine tools has developed into the core element of many disruptive
business models in industry: personalization and customization of products and services. Credit card contracts are being customized to a consumer's spending profile,
broadcasted radio changes to a media stream fitting just our mood and preferences,
blockbuster drugs are being replaced by personalized medicine based on real time
data tracking, and instead of a "world car" we just buy mobility services when we
need it where we need it how we need it.
But what are the fundamental elements of a successful mass customization enterprise? Over the past decades, the mass customization community has studied this
topic in many different venues. We found that mass customization is a strategic
mechanism that is applicable to most businesses, provided that it is appropriately
understood and deployed. However, the state of the practice often lacks behind the
state of MC research. Here, we still see large challenges in better bridging between
what we already know and how it is implemented in business.
We will close with some new ideas on the future of mass customization, and especially focus on solution space development, i.e. the way how to define what options
shall be offered to customers: Where does customization really provide value, and
how can companies determine when and where to customize? Our argument here is
that it may indeed be not firms, but users and customers themselves that determine
this development.
4
1.2
Opel ADAM. One car, a million possibilities
Director, Richard P Hughes, Germany
[email protected]
Bio. After leaving university in Manchester, England with a BA(Hons) in Marketing & Business, Richard started his career in FMCG joining Kellogg’s GB Ltd on
their graduate programme. He then moved across to Automotive, where he has
worked for General Motors (GM) for the past 18 years, holding a number of senior
leadership roles across both Sales & Marketing functions. For several years, he
headed up Marketing Communications, producing many of GM’s TV campaigns.
Richard is currently Director of Digital Marketing and Customer Loyalty for Europe, and is based in Frankfurt. He has also worked out of GM’s Zurich and London
offices.
He is a member of the Executive Committee of ISBA, representing advertisers in
the UK on key policy affecting the industry.
Abstract. Opel is one of Europe’s largest automakers. Founded by Adam Opel in
1862, the company celebrated its 150th anniversary in 2012.
Headquartered in Rüsselsheim, the company has 11 plants and four development
and test centers in seven European countries. Opel employs around 37,000 people in
Europe. Opel and its British sister brand Vauxhall are present in over 50 countries. In
2013 over one million passenger cars and light commercial vehicles were sold.
German engineering and expressive design are at the heart of organisation, and
have led to the company receiving many prestigious awards for its innovation, including Car of the Year for the segment leading Ampera electric car.
In 2013, the ADAM was launched, a car packed with style, innovation, advanced
powertrains and, uniquely, an unprecedented level of personalisation. Through consumer clinic work over the past 5 years, it was clear that some consumer segments
wanted greater choice in the personalisation of their car as it was a way that they
could express themselves and also buy something ‘unique’. The challenge was set to
the engineering, design and marketing teams. How far could this be taken? What was
possible? Could manufacturing manage the complexity? Would too much choice be
confusing?
Traditionally, cars are offered in several trim levels in a hierarchy, but this expressive group wanted more. Why not have a few base platforms that consumers can then
build their own model from. Whilst most manufacturers offer choices in colours, seat
fabrics, engines and certain options, the decision was made to create a complete range
5
of personalised options stretching from different inner headlining options including
LED’s to an extensive array of coloured wheels and styling parts. In fact, the choice
was so broad, it was calculated that were over 4.5 million build combinations!!
A key part of the consumer purchase journey is the manufacturer website, where
they can explore and discover more about their choice of car. The on-line car configurator is highly used tool, enabling the user to build, preview and share their choice of
car. For ADAM, a new configurator was built to better showcase the range of options
and improve the user interface. Building this new tool presented its challenges due to
the model complexity. Has it worked – what insight does the website analytics provide?
6
1.3
Mass Customization Technology Enabling Concepts
© LEGO, 2012
Senior Project Manager, Ronen Hadar, LEGO, Denmark
[email protected]
Bio. Ronen Hadar is a Senior Project Manager at the Concept Center – The LEGO
Group’s frontend technology innovation department and has been employed there for
the past 3 years. In the past Ronen was employed in areas of business development
and engineering R&D. Ronen holds master degree in Innovation and Business Engineering and is currently submitting his PhD in manufacturing concepts for the future.
Abstract. Mass customization and mass personalization have been increasing
trends in the past decade. However, companies are struggling with implementing
mass customization business models and financially justifying them due to manufacturing systems inflexibility. Two interesting manufacturing concepts and technologies
are upcoming that may enable companies to be more competitive in this changing
environment, namely Reconfigurable Manufacturing Systems (RMS) and Rapid
Manufacturing (RM – commonly referred to as 3D printing). RMS is a manufacturing
concept for systems that are designed for fast changeovers. The concept is based on
several core characteristics such as: modularity, integrability, focused flexibility, and
diagnosability. Implementing these core characteristics will enable a company to
make fast changeovers and by that increase its ability to produce smaller batches according to real demand. RM is defined is the use of Additive Manufacturing (AM)
technologies for the production of consumer goods on a large scale. The free forming
characteristic of the technology enables the production of “one-off” products without
investing in additional tools and machines. Other advantages can be seen in the supply chain and production processes. The presentation will extensively introduce these
two concepts and their potential contribution to the implementation of mass customization business models in a company.
7
8
1.4
Individual Customers: The Lifeblood of Your Business
B. Joseph Pine II, Strategic Horizons, United States of America
[email protected]
Bio. B. JOSEPH PINE II is an internationally acclaimed author, speaker, and
management advisor to Fortune 500 companies and entrepreneurial start-ups alike.
He is cofounder of Strategic Horizons LLP, a thinking studio dedicated to helping
businesses conceive and design new ways of adding value to their economic offerings.
In 1999 Mr. Pine and his partner James H. Gilmore wrote the best-selling book
The Experience Economy: Work Is Theatre & Every Business a Stage, which demonstrates how goods and services are no longer enough; what companies must offer
today are experiences – memorable events that engage each customer in an inherently personal way. Published in fifteen languages and named one of the 100 best business books of all time by 800ceoread, in 2011 The Experience Economy came out for
the first time in paperback as an Updated Edition with new ideas, new frameworks,
and many, many new exemplars.
Mr. Pine also published in 2011, with Kim C. Korn as coauthor, Infinite Possibility: Creating Customer Value on the Digital Frontier, on how to use digital technology to stage experiences that fuse the real and the virtual. At its core is a new framework called the Multiverse that builds on the fundamental nature of the created universe – time, space, and matter – by showing how digital technology flips each of
these dimensions on their head to create new worlds, first in our imagination and then
in our experience.
In 2007 Mr. Pine wrote Authenticity: What Consumers Really Want with Mr. Gilmore, which recognizes that in a world of increasingly paid-for experiences, people
no longer accept the fake from the phony, but want the real from the genuine. Amazon.com named it one of the top ten business books of 2007 while a cover story in
TIME magazine cited it as one of “10 ideas that are changing the world”.
His first book was the award-winning Mass Customization: The New Frontier in
Business Competition, which details the shift companies are making from mass producing standardized offerings to mass customizing goods and services that efficiently
fulfill the wants and needs of individual customers. The Financial Times chose it as
one the seven best business books of 1993. He and his partner followed this up in
2000 by editing a collection of Harvard Business Review articles entitled Markets of
One: Creating Customer-Unique Value through Mass Customization.
Mr. Pine has also written numerous articles for the Harvard Business Review, The
Wall Street Journal, Chief Executive, Worldlink, CIO, Strategy & Leadership, and the
9
IBM Systems Journal, among many others. Prior to beginning his writing and speaking activities, Mr. Pine held a number of technical and managerial positions with
IBM. He is frequently quoted in such places as Forbes, The New York Times, Wired,
USA TODAY, Investor’s Business Daily, ABC News, Good Morning America, Fortune, Bloomberg BusinessWeek, and Industry Week.
In his speaking and teaching activities, Mr. Pine has addressed both the World
Economic Forum and TED and has been a Visiting Scholar with the MIT Design Lab.
He has also taught at Penn State, Duke Corporate Education, the University of Minnesota, UCLA’s Anderson Graduate School of Management, and the Harvard Design
School. He serves on the editorial boards of Strategy & Leadership and Strategic
Direction, and is a Senior Fellow with both the Design Futures Council and the European Centre for the Experience Economy, which he co-founded.
Abstract. The era of Mass Production is over. There are no markets, only customers. The term “individual customer” is redundant. Customers don’t want choice, they
just want exactly what they want. Turn marketing into customering. Do only and exactly what each customer needs. Anything you can digitize you can customize. All
customers are unique, and each and every one is the lifeblood of any business.
These are a few of the insights Joe Pine has learned in over 25 years of studying
Mass Customization. Now that his book, Mass Customization: The New Frontier in
Business Competition, has gone out of print after 20 years, Joe is gathering these
insights for a new work on the subject, one centered around a new Mass Customization Manifesto.
At this keynote session Mr. Pine will reveal this Manifesto and provide every attendee with a personal copy. He will then expand on each of the concepts in the Manifesto with frameworks that together get at the core of what Mass Customization is –
and what businesses must do to embrace it.
10
Industry Track Speakers
11
© Hydrema, © Vestas, © Madshus, © ConfigIT, © LEGO, © SBS, © FL Smidt,
© NNE Pharma, © Zazzle, © 3Dfacto, © NCC, © Grundfos
12
Industry session 1:
MC in Voume Oriented Industries
Session Chair: Associate Professor, Poul H. K. Hansen, AAU, Denmark
[email protected]
Bio. Poul Kyvsgaard Hansen is an Associate Professor of Technology Management and Organization at Center for Industrial Production at Aalborg University in
Denmark. He holds a M.Sc. in Industrial Engineering and a Ph.D. in Technology
Management. His current research focuses on various aspects of communicating
complex problems and solutions. This includes both organizational and technical
issues within three overall research areas 1) Product modularization – Architectures
– Platforms, 2) Innovation Management, and 3) Change Management
Abstract. Modularization is the foundation for successful Mass Customization
and Personalization. However, the phenomenon of managing modularization is not
well known. The cause-effect relationships between modularization and realized
benefits are complex and comprehensive. Though a number of research works have
contributed to the study of the phenomenon of efficient and effective modularization
management it is far from clarified.
Modularization management does not differ from management in general. As
modularity is a means, the management challenge will be to apply this means so it
may serve the short and long term goals of the company best possible. The goals that
are impacted by decisions on modularity are characterized by being many and crossorganizational. Some generally impacted goals are related to: expected product
changes, expected product lifetime, product variety, product family commonality,
sourcing possibilities, various lead-times, product performance, manufacturability,
product cost policy, competition policy, purchase policy, logistic setup, investment
policy, and technology change policy.
13
2.1
Product Architectures and Requirements Engineering –
enablers for effective variant creation.
Senior Change Agent, Jesper Thyssen, Grundfos
[email protected]
Bio. Jesper Thyssen, M.Sc.; Ph.d.; Senior Change Agent, System Management,
Grundfos A/S.
Acquired the M.Sc. degree in 1999, and the Ph.d. in 2005, both from Aalborg University, Denmark. Core areas of experiences are change management within the domains of product development, value engineering, design for X, and product architectures and platforms.
Abstract. Grundfos is the world’s largest manufacturer of pumps and pump systems with turnover of 3,035 EUR mill and 18.000 employees. The company experiences an ever more complex product development process due to growing technological complexity, globalization and the quest for constantly shortening the time to market. One of the central themes in the pursuit of improving the product development
capabilities is, among others, improved deployment of product architectures and requirements engineering as two interlinked means. The architectural work has in the
past mostly been in the scope of single projects and sub-set of a product program. The
scope is changing, reflecting a full product program level identifying commonalities
and variance upfront, thus improving the effectiveness of the product program. Simultaneously, the rigor and quality of the requirements engineering is in focus and highly
interlinked with the product architectural work. As part of an overall change program,
improved requirements engineering is central to the quest for increased reuse in the
global organization, e.g. the use of technology platforms. The application of new IT
tool among other enables a common repository supporting sharing of requirements in
a global development organization.
14
2.2
Vestas, Wind - It means the world to us.
© Courtesy of Vestas
Senior Change Agent, Carl Erik Skødstrup, VESTAS, Denmark
[email protected]
Bio. Carl Erik Skjølstrup has since his Master Degree from a Japanese national
university back in 1984 been responsible for Technology Development and modularization in companies as different as shipbuilding, robotics, machines for the food industry, LEGO and is now since 6 years Vice President in Vestas Technology & Service Solutions responsible for Innovation & Architecture.
Abstract. Vestas is the most global player in the wind industry and as such exposed to a large variety of market demands. Energy prices, politics, local regulations
and financials are further constantly changing the choice of the optimal wind power
plant solution in a given location. Before the financial crises, when the demand for
Vestas wind turbines were larger than the delivery capacity, the design principle were
based on “design-for-severe-user” and “one-size-fits-all” to ensure maximum output
from assembly lines. Needless to say this design strategy is not optimal in the current
cost pressured and highly varying market so Vestas needs to set up methods to offer
variability towards the market without creating internal complexity.
15
2.3
The future is coming - are we ready for it at the LEGO
Group?
© LEGO, 2012
Senior Project Manager, Allan Rasmussen, LEGO
[email protected]
Bio. Allan V. Rasmussen is senior project manager at the Concept Center – The
LEGO Group’s front-end technology innovation center. He has a M. Sc. in Chemical
engineering from DTU, a Bachelor in Business Administration (HDafsætningsøkonomi) from SDU and a MBA in Technology and innovation management (MMT) from AAU.
Abstract. Allan has worked with plastic devilment and innovation for more than
15 years. The last 6 years he has worked with front end material development and
innovation at the LEGO Group. He will use this experience to reflect on the adaptability of the LEGO Group – and to what degree the company is ready for the change that
the future will hold.
Additive manufacturing (or 3D printing) will be a fact in the future. It is only going
to be a question how companies are reacting to it. Will the huge success the LEGO
Group has experienced the last couple of years be a strong foundation for the changing future? – Or will it narrow the focus of the company to short term optimization
and continued improvement?
16
2.4
Process Modelling – a way to manage workflows in the quote
and order process
Product Manager, Mads Kjærgaard Larsen, 3Dfacto, Denmark
[email protected]
Bio. Mads Kjærgaard Larsen has a M.Sc. in Economics and Business Administration and has throughout his career been focusing on restructuring business processes
that increase revenue and profit. For the past 15 years, Mads has gained a thorough
hands-on experience from both supplier and customer side in restructuring business
processes by implementing coherent, sustainable configuration, pricing and quoting
processes that severely impact the bottom-line and are essential for future growth of
many international manufacturing companies.
Abstract. Sales and product configurators are cross-organizational tools that provide great ways for all stakeholders in the quoting and ordering process to communicate efficiently about the offered product variance. 3Dfacto experience a rise in the
market demand in both Engineer-To-Order and Configure-To-Order oriented industries for extending sales and product configurators to manage the flow of crossorganizational activities around the product composition. Whereas the product
knowledge is important in the current sales and product configurators, the process
knowledge of managing product releases, quote generation and approval, and new
variant creation become increasingly important. A need for a holistic approach to
configuration is therefore needed, taking into account both the classic modelling of
the product variance but also the modelling and control of the workflow activities in
connection with the quoting and ordering of the product composition. Mads
Kjærgaard Larsen, Product Manager at 3Dfacto, will share his extensive market experiences with practical examples showing the power of combining process modelling
with product modelling.
17
18
Industry session 2:
MC in Consumer Oriented Industries
Session Chair: Senior Researcher, Lars Skjelstad, SINTEF, Norway
[email protected]
Bio. Lars Skjelstad is a senior research scientist at SINTEF Technology and Society. He holds a PhD within Mass Customization from NTNU, the Norwegian University of Science and Technology. Skjelstad is project manager of several Norwegian MCprojects sponsored by The Research Council of Norway. In one of them, the ARMS
project, Mass customization is adjusted to Norwegian culture, and an Arena for MC
is created at the City of Røros. He has previously worked in industry.
Abstract. Consumer oriented industries are the epicenter of the thinking on Mass
Customization. The possibilities to capture the customers' interest, and offer something they really want, was by many seen as a new way to survive and even gain market share. Academia followed up with theories and descriptions of how to go about.
Listing principles to follow and capabilities to gain to be a preferred supplier. Businesses must take the "customer perspective" and imagine; what do they need?
Today we have numerous business cases communicating stories of success. Not
only with respect to customer satisfaction, but also in terms of business achievements.
The introduction to this industrial track will discuss the balance between different
positions when designing a business.
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2.5
Future Challenges of Industrial Product Configuration
Andreas Falkner, Siemens
[email protected]
Bio. Andreas Falkner holds a PhD in Computer Science. Since 1992 he has been
developing product configurators for complex technical systems in various domains.
At present, he is Senior Research Scientist at Siemens' Research and Technology Center, Research Group "Configuration Technologies" (Vienna, Austria).
Abstract. Siemens is a huge company and offers thousands of different types
of products, mainly in a B2B context. Due to different requirements of the different
domains and the long history of most of the product lines, different configurators are
used. As many of the products (and technical systems) are large and complex, much
configuration is done by Siemens designers, engineers and sales persons in-house. To
stay competitive and address the challenge to accelerate production processes the
business units are forced to increase flexibility and to shorten time-to-market. An
important aspect to achieve this is leveraging individualization and masscustomization also in a mainly B2B world: open configuration by the customer, factory sourcing, on-site production of parts etc.
This talk gives an overview of the current situation of product configuration within
Siemens and how Siemens plans to address the challenges of Industry 4.0 and the
trend to open configuration.
20
2.6
Mass Customization in the Belgian Textile Industry
Consultant, Sander de Vrieze, Centexbel, Belgium
[email protected]
Bio. Sander De Vrieze, PhDis working in textile engineering, master in science
and engineering; working now almost 4 years as a consultant and advisor in Centexbel, the CENtre of TEXtiles in BELgium. His work is especially directed towards
intellectual property (patents) and towards mass customization. We are funded by the
Belgian government to stimulate the implementation of mass customisation in the
Belgian textile companies. His presentation will be about this implementation, about
the success and fail stories.
Abstract. The Belgian textile industry consists of around several hundred different
companies that operate in many different subdomains. Over the last years, these companies have embraced mass customization. This leads to a transition in several companies, resulting in a stream of new products. When looking to the different segments
of the textile industry, interior textiles, technical textiles and fashion, in each segment
examples can be found of the transition to mass customization. This is most peculiar,
since two of these segments, interior textiles and technical textiles, are historically
B2B-companies. At this moment, different ways of implementing mass customization
can be seen at Belgian textile companies. B2C implementation of mass customization
can be seen in some companies who are historically purely B2B companies. The transition towards these activities shows different problems, amongst others changing the
marketing strategy.
21
2.7
Smart factory – smart skis
Technical Director, Bjørn Ivar Austrem, Madshus Ski,Norway
[email protected]
Bio. Education: Master of Mechanical Engineering (Norwegian University of Science and Technology) from 2000. Worked 7 years in the Norwegian offshore industry
as engineer and project manager, responsible for installation of subsea equipment for
Aker. Since 2007 development manager and now technical director at Madshus AS.
Abstract. Cross country skiing is the national sport in Norway. Norwegian ski
manufacturer Madshus has, together with Sintef, developed a new way of thinking
when it comes to offering customized products and enhanced services to its customers. Small variations in the production processes, combined with the many different
snow conditions and different biomechanical level of the customers makes it a tedious
job for the retailers to sell the “perfect” ski to all customers. By introducing new technology like smart automization, NFC technology and real time data collection in the
factory, Madshus is now able to offer ski property data that will be used to customize
the skis to the different customers. This will speed up the selling process and make
sales more secure for both the retailer and the customers.
22
2.8
Making the world a better place to sit
Vice president manufacturing Røros, Ottar Tollan, SBS AS, Norway
[email protected]
Bio. Vice President Manufacturing at Scandinavian Business Seating Røros (producing HÅG task chairs, and conference chairs). Previous experience as Maintenance and improvement engineer in Elkem ASA (Aluminium, and Silicon materials),
and Production manager Elkem Thamshavn AS.
Abstract.
- Who are Scandinavian Business seating
"Making the world a better place to sit"
Our brands - RH, RBM ang HÅG
Our procuction sites
- Manufacturing in Røros with 70% export
- Change and development towards mass customization
- The capabilities of Superflex line producing HÅG task chairs
- Operational performance
23
24
Industry session 3:
MC in Project Oriented Industries
Session Chair: Professor Lars Hvam, DTU, Denmark
[email protected]
Bio. Lars Hvam is Professor in Operations Management at the Technical University of Denmark. He has been working on product configuration and complexity management for more than 15 years as a teacher, a researcher and as consultant. Lars
Hvam is also head of the center for product modeling, and the founder and current
chairman of the Product Modeling Association, www.productmodels.org, whose aim
is to disseminate knowledge of the possibilities offered by product configuration and
complexity management through seminars, courses and other activities.
Abstract. Companies making complex and highly engineered products like machines, complete factories and buildings face a significant challenge in reducing lead
time and uncertainties in the projects and at the same time improve productivity and
the quality of the products. In order to meet this challenge a modular product structure
and product configuration systems have proved to have a positive impact on quality,
lead time and efficiency of the projects. In this session the potential and approaches
for applying the principles of modular products and product configuration will be
presented.
25
2.9
Efficient Configuration programming at FLS
Product Configuration Manager, Morten Hugo Bennick, FL Smidth, Denmark
[email protected]
Bio. Responsible for Integration of Product models at FLSmidth A/S
Abstract. FLSmidth is a world leader in delivering complete solutions for Cement
and Mineral Industry, covering from customized equipment to complete operation of
plants.
MyConfig is a versatile configuration tool that supports and optimizes the daily
workflow for sales, proposals, orders and spare parts. The automatically generated
output from the system range from product structures, proposals and part lists to 2D
and 3D documentation. Different systems, such as MathCAD, STAAD.Pro, SolidWorks, SmartPlant, MS Office, PDMWorks or Enovia can be linked to MyConfig to
create and register the generated documents.
Among the results of using this method, are a significantly reduced lead time and
higher quality level. The models (product builds) used in MyConfig are described by
in an efficient programming language which make it is easy to make product structure, attributes, attributes and other business rules.
The Technology behind MyConfig; MyConfig is a highly modularized web based
system with a modern Web API that allows to easily create new interfaces to engineering software tools like SolidWorks, SmartPlant, MathCAD, STAAD.Pro, Excel,
enabling easy access for end users to engineering knowledge. MyConfig itself is accessible from other systems, so other systems can reuse the knowledge that is in MyConfig. Integration into other Companies configurators/Knowledge systems are also
available.
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2.10 Partial modularity and the Module Application Matrix
Anders Kudsk, NCC, Denmark
[email protected]
Bio. Anders Kudsk is Innovation Manager at NCC Construction Denmark A/S. He
is responsible for the development of concept construction based on technical platforms an area he has worked with since 2007.
Anders is Ph.D. and Master of Science from the Technical University of Denmark
and has also a background as a skilled carpenter.
Abstract. Much work has been done on mass customization and platforms for fully modularized products. In some industries, e.g. the construction industry, the relationships between the size of the product and its complexity, as well as the availability
of development resources and market volume, can in practice make it exceedingly
difficult to achieve full modularization in one step, if at all. Due to these challenges, it
is necessary to work with partial modularization, and to understand the possibilities
for stepwise implementation of modules and platforms. The Module Application Matrix is a framework for mapping the degree of modularity in a product, and the level
of design-specific detail required for each of the modules. This approach is helpful
both for gaining a big picture understanding of partial modularization, and for working with it, especially at the strategic level. NCC Constructions Denmark A/S is
working with partial modularity and stepwise implementation, employing both a topdown approach, focusing on the entire building as a whole, and a bottom-up approach
with special detailed focus on selected parts of the building. The two approaches represent two different strategies, as is clarified through use of the Module Application
Matrix.
27
2.11 Modular Engineering and Modular Construction
Senior Specialist, Jørn Grønbech, NNE Pharmaplan, Denmark
[email protected]
Bio. Mr. Jørn Grønbech is a mechanical engineer has more than 20 years of experience in equipment design, engineering management as well as project management
of projects within the biotech, pharmaceutical and petrol-chemical industries.
Jørn is the recognised NNE Pharmaplan specialist in the field of Modular Engineering and Modular Construction and have participated in a large number of projects within this area.
Abstract. The presentation will include the following topics:
Description of the theory behind NNE Pharmaplan (NP) Modular Engineering and
the advantages of use this when designing plants for the pharmaceutical- and chemical industries.
In the NP definition of Modular Engineering the process is the only guiding principle in the modularisation – not physical or construction considerations.
Presentation of how the modular design is transformed into modular constructions
units and the advantages of use this method when establishing new plants or revamps;
especially when talking Fast Track projects.
A case storie where Modular Engineering and Modular Construction have been
used.
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Industry session 4:
MC in Engineer-to-Order Industries
Session Chair: Professor, Niels Henrik Mortensen, DTU, Denmark
[email protected]
Bio. Niels Henrik Mortensen holds a PhD and a M.Sc. in Mechanical Engineering
and is employed as a Professor at the Technical University of Denmark. He is heading the section of Engineering Design & Product Development at the Department of
Mechanical Engineering (DTU-MEK). He is also heading the Product Architecture
research group at DTU-MEK. The main focus of the Product Architecture Group is
development of procedures and methods supporting development of Product Families
based on Architectures and Platforms.
Abstract. The main topic of this workshop is to present theoretical and practical
results from application of MC in this industry. Due to the low production volume and
amount of engineering contents there very different conditions compared to e.g. mass
production industry. Among the main topics to be discussed are:
 How to determine the right balance between off line work (the preparation of e.g.
modules) and on line architecture work (the customer project execution)?
 How to design modules that have sufficient flexibility to serve, a variety of customer needs and at the same time achieve effective production?
 How dies modern IT systems such as configuration and PLM support MC in this
industry? One aspect is multiple structures. Being able to work with both systems
and module architectures concurrently has the potential to increase engineering
performance significantly.
 How to organize architecture development and maintenance – what are best practice in industry and academia?
29
2.12 Platform design for shortening delivery time.
R&D Manager, Thorkild K. Iversen, Hydrema, Denmark
[email protected]
Bio. Thorkil K. Iversen. R&D manager for the Hydrema group. M.Sc.M.E from
Aalborg University.
Abstract. Platform design for shortening delivery time for earthmoving equipment. Hydrema is a medium sized Danish producer of backhoes, excavators and
dump trucks. By using platform design and new assembly strategy for 3 new product
series, Hydrema has got fewer parts, lower assembly time and higher delivery performance. All machines are made direct to customer ordering configuration direct
from the assembly. The platform method has been used both for components, systems
and machine modules. Together with DTU Hydrema has participated in a “platform
project”, the outcome of this will be shown.
30
2.13 Product Experience Delivery Via 3D Imaging
CTO, George Borshukov, Embodee, Portland, OR, United States of America
[email protected]
Bio. George Borshukov, as Embodee’s CTO, is responsible for the creation and
evolution of the first integrated platform for apparel customization and try-on. The
virtuoso interactive rendering and visualization capabilities of the Embodee customization and virtual try-on applications build on techniques he developed as a leader in
technical innovation in the motion pictures and interactive entertainment industries.
At Electronic Arts, George was Director of Creative R&D, where he set standards for
facial capture, animation and rendering, and fostered innovation in hi-fidelity
graphics and new forms of interactivity including 3D camera-based gestural interfaces.
As a Technical Designer for the Bullet Time sequences in The Matrix, George developed the image-based virtual cinematography pipeline for capturing real film sets
and locations. These sequences captured people’s imagination and were crucial for
The Matrix winning the 1999 Oscar for Best Visual Effects. Borshukov received an
Academy Award for Scientific and Technical Achievement for his work on the film
and a Visual Effect Society (VES) Award for the development and application of the
Universal Capture facial photography technique used in successive Matrix films.
Borshukov co-invented the UV Pelting approach for parameterization and seamless texturing of polygonal or subdivision surfaces, an evolving standard for UV mapping in popular 3D packages. He received his M.S. from the University of California
at Berkeley’s Department of Electrical Engineering and Computer Science. He is a
contributor to SIGGRAPH, a self-confessed pixel perfectionist, currently living in
Portland, Oregon with his family where he enjoys skiing and wakeboarding.
Abstract. If mass customization is to become ubiquitous, 3D imagery must play an
essential role. The typical method of marketing products today relies on 2D photos
that are usually small, lack subtle but important detail, and don’t allow viewing from
all angles. Thus, they don’t bridge The Sensorial Chasm: the difference between
touching and closely inspecting a product in person vs experiencing it virtually on a
screen. New technology allows a single product to be rendered dynamically on demand in vivid 3D -- not just from any angle but with multiple customization options.
This creates a practical and effective way of creating a virtual library of thousands of
potential visualizations of a single product. This vastly increases the ability of companies to meet hyper-individualized aesthetic tastes of consumers who increasingly not
31
only want but expect to be able to customize a product before it’s manufactured. And
it allows companies to effectively market a wide range of products before they’re
manufactured. We’ll explore the technology, its real world applications at large companies, and potential future enhancements.
32
2.14 Experience from configuration of sub stations at Danfoss
CEO, Ulf Harlou Platform & architecture consultant at CPC, DTU, Denmark
[email protected]
Bio. Ulf harlou, Msc.Eng., PhD, Platform & architecture specialist, CPC – Center
for Product Customization
Abstract. Ulf has 15 years of experience with implementation of modularization
and configuration management in Scandinavian companies. The basis of Ulfs work is
a structured methodology for describing variety, product structures, modules, interfaces, systems, etc. The methodology emphasizes on the importance of describing the
product family from market, product and production point of view. All three point of
views are important in order to design a product family.
33
2.15
Configuration Lifecycle Management
CEO, Henrik Reif Andersen, Configit, Denmark
[email protected]
Bio. CEO, Configit
•
Co-founder of Configit
•
PhD in Computer Science from the University of Aarhus
•
25 years experience in IT development and research
•
Professor of Computer Science
Abstract. Enterprise-Wide Management of Vehicle Configurations
34
Academic Tracks Speakers
35
36
3.1
Web-based sales configurator capabilities to increase the
value of Mass Customization
Professor Cipriano Forza, University of Padova, Italy
[email protected]
Bio. Cipriano Forza is a full professor of operations management at the Università
di Padova (Italy). He is also on the faculty at the European Institute of Advanced
Studies in Management, where he teaches research methods in operations management. He has been visiting scholar at Minnesota University (USA), London Business
School (UK), and Arizona State University (USA). Currently he serves as an associate
editor for the Journal of Operations Management and the Decision Sciences Journal.
His research focuses on product variety management. He is researching such topics
as mass customization, concurrent product-process-supply chain design, and product
configuration. He has been successfully assisting numerous companies in these topics. He has published in the Journal of Operations Management, the International
Journal of Operations & Production Management, the International Journal of Production Research, Computers in Industry, the International Journal of Production
Economics, Industrial Management & Data Systems, and other journals. In 2003 and
2007, he published two books with McGraw-Hill and Palgrave Macmillan, respectively, on product information management for mass customization.
Abstract. Mass customization (MC) literature has long emphasized that the consumer’s experience of self-customizing a product with a sales configurator (or MC
experience for short) can be a source of costs for the consumer in terms of time spent,
cognitive effort required and negative emotions elicited. More recently, MC research
has found that such an experience can also be a source of consumer benefits that go
above and beyond the traditionally considered utility of possessing a product that
better fits the consumer’s idiosyncratic needs. Both these experience-related benefits
and the experience-related costs mentioned above influence the value of mass customization on the supplier’s side by affecting the customer’s willingness to use a sales
configurator, the likelihood of his/her abandoning the self-customization process
without actually buying a product and his/her willingness to pay for the configured
product. We conceptualize five capabilities that sales configurators should deploy to
both alleviate such costs and augment such benefits and we develop and validate a
parsimonious measurement instrument of such capabilities for both theory-testing and
sales configurator benchmarking. By analyzing MC experiences made on real Webbased configurators of consumer goods, we also find support for the hypotheses that
37
these five capabilities increase hedonic and creative-achievement benefits for the
consumer as well as his/her satisfaction with the configured product and purchase
intention. Implications of these findings for both MC research and practice are finally
discussed.
38
3.2
Understanding the micro-foundations of Mass Customization
Professor Fabrizio Salvador, IE Business School, Spain
[email protected]
Bio. Fabrizio Salvador is Professor of Operations Management at IE Business
School and Adjunct Professor at the MIT-Zaragoza Logistics Program. He is a founding member of the MIT Smart Customization Group, has been visiting professor at the
Massachusetts Institute of Technology as well as adjunct Faculty Research Associate
at Arizona State University. He received a Ph.D in Operations Management from the
University of Padova, where he also graduated in Industrial Engineering.
Dr. Salvador research focuses on the design of business processes under demand
and supply uncertainty and organizational learning. He contributed to such topics as
Mass Customization, Orchestration of Distributed Operations, Business Intelligence
in diverse industries such as Consulting and IT Services, Health Care, Industrial
Equipment Manufacturing, Consumer Goods and Engineering Services. His awardwinning research has been published in the MIT Sloan Management Review, Journal
of Operations Management, Production and Operations Management, IEEE Transactions on Engineering Management, among the others. Dr Salvador also serves as
Associate Editor for the Journal of Operations Management and the Decision Sciences Journal.
Over his career he wan over one million Euros in research grants sponsored from
various international agencies. He assisted numerous organizations and their customers’ in innovating their business processes, including AstraZeneca, DHL, IBM,
John Deere, Nokia, Xerox, Permasteelisa and Tetrapack.
Dr. Salvador is a firm believer in the importance of transfer and interchange of
ideas between academia and practice. Accordingly, his teaching experience spans
undergraduate, post-graduate courses and executive programs. He also regularly
interacts with business leaders through keynote speeches, roundtables and other diffusion-oriented events.
Abstract. Research has overly focused on organizational and technological solutions to support mass customization, paying little attention to its micro-foundations,
that is, to the contribution of workers’ and managers’ actions. This gap is particularly
critical in knowledge work settings where (1) customization is widespread due to the
inherent problem-solving nature of work and (2) workers are an essential driver of
organizational performance. I report recent findings from a multi-year study of a
software maintenance unit of a top-five global technology and consulting company.
39
Analysis of 13,608 maintenance tasks executed by 67 workers over a time span of 2
years reveals a number of counter-intuitive lessons about balancing customization and
productivity in knowledge work settings.
40
Special Session
41
42
4.1
Mass Customization and Sustainability
Organizers and presenters of the Special Session
Ph.D. student Golboo Pourabdollahian & Ph.D. student Frank Steiner
[email protected]
/ [email protected]
BIO Golboo Pourabdollahian: Golboo Pourabdollahian is a PhD student and research fellow at Politecnico di Milano, Department of Management, Economics and
Industrial Engineering. She received her B.Sc in Mechanical engineering from K.N.T
University of Technology and obtained her M.Sc degree in Management, Economics
and Industrial Engineering from Politecnico di Milano. Golboo’s research is mainly
focused on impacts of mass customization on sustainability and development of business models for sustainable mass customization with a focus on footwear sector. Golboo has also carried out some research on mass customization manufacturing and
innovative technological enablers for mass customization.
BIO Frank Steiner: Frank Steiner is a PhD student and researcher at the Technology and Innovation Management Group at RWTH Aachen University. Frank received a diploma degree in business administration and mechanical engineering at
RWTH Aachen University and completed a Masters program in engineering management at Portland State University. Frank’s research mainly focuses on strategic
management issues of mass customization in a B2B context. In his dissertation Frank
analyzes specific strategic capabilities that companies have to develop in order to
realize successful MC business models. Additionally, Frank has conducted several
studies on issues of environmental sustainability in mass customization business settings. As fields of application, Frank is strongly interested in the strategic management of products and technologies in the commercial vehicle / automotive sector.
Abstract: Mass customization (MC) has been broadly discussed as a potential
business model for heterogeneous markets in management literature. In market settings that are characterized by high levels of customer need heterogeneity, MC has to
be considered as an economically viable strategy: on the one hand, firms can charge
higher prices for customized goods because of the increased willingness to pay of
customers for individualized goods. On the other hand, the realization of flexible
manufacturing processes and suitable customer interaction tools allows providing
these customized goods at cost levels that are comparable to those of mass produced
goods. Subsequently, profit margins may be higher compared to those of standardized
products under such heterogeneous market conditions.
43
However, it might not be sufficient to assess the MC business model solely on the
basis of economical indicators. Environmental problems and the exacerbating climate
change have sparked a global debate about ecological thinking and sustainability.
Customer demand for more environmentally friendly products on one hand, and strict
governmental regulations on the other hand bring out the concept of sustainability as a
point of attention for companies. In this context, ELKINGTON (1994) claims that companies need to develop so called “Win-Win-Win”-strategies, which are sustainable in
terms of economic, social and environmental aspects. In accordance with this aspect,
more and more authors claim that MC – besides being an economically attractive
business approach – also carries the potential to be an environmentally beneficial
business model. In this context, literature sees mass customization as a mean to reduce overproduction and waste of resources (Pollard et al., 2008), claims that customized products have a longer life span (Kleer and Steiner, 2013) and allow better reuse/recycling possibilities (Boer et al., 2013).
Nevertheless, there are only very few studies that support these aspects of environmental sustainability beyond conceptual research. The existing trade-off of considering mass customization and sustainability simultaneously is a challenging task
for companies, but it triggers a new research stream for academia. Research initiatives
need to support companies in implementing mass customization in a more sustainable
manner. Therefore, this special session of the MCPC 2014 conference aims at the
examination of the link between MC and sustainability with the help of empirical data
or simulation studies. Ultimately, the research discussed in the special session should
lead to the identification of general impact factors of mass customization on sustainability.
References
1. Boër, C.R., Pedrazzoli, P., Bettoni, A., Sorlini, M., 2013. Mass Customization and Sustainability: An assessment framework and industrial implementation. London et al.:
Springer.
2. Elkington, J. (1994), Towards the Sustainable Corporation: Win-Win-Win Business Strategies for Sustainable Development. In: California Management Review, 36 (4),90-100.
3. Kleer, R. and F. Steiner (2013), Mass Customization: Bridging Customer Integration and
Sustainability? (Working Paper). Available at SSRN: http://ssrn.com/abstract=2245622.
4. Pollard, D., Chuo, S., Lee, B. 2008. Strategies for Mass Customization. In: Journal of
Business & Economics Research, 6 (7), 77-86.
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Academic Sessions Presentations
45
46
5.1
A Bonded Experience: ‘Value creation as the creation of an
experience, within a business relationship’
Marcel Weber, Ron Journee
Contact: Marcel Weber ([email protected])
Paper ID 037
Abstract: In this paper we investigate the application of the concepts of customer
experience and co-creation for SME’s in the B2B-sector. Based on a systematic
review of extant research on the subject of customer experience we will recognize that
customer experience management can be a new way for organizations to create a
competitive advantage, simultaneously creating more value for their customers. We
will introduce a conceptual framework for a better understanding of the concept,
identifying several elements that have to be taken into account in customer experience
management. Following, we will be able to cross the bridge from customer
experience to customer co-creation, in particular the co-creation of experiences in
NPD. Reflecting these insights on SME practice will teach us what small and
medium-sized enterprises can do to apply customer experience management.
5.2
A Case Investigation of Product Structure Complexity in
Mass Customization using a Data Mining Approach
Peter Nielsen, Thomas Ditlev Brunoe, Kjeld Nielsen
Contact: Peter Nielsen ([email protected])
Paper ID 059
Abstract: This paper presents a data mining method for analyzing historical
configuration data providing a number of opportunities for improving mass
customization capabilities. The overall objective of this paper is to investigate how
specific quantitative analyses, more specifically the association rule Apriori, can
support the development within the three fundamental mass customization
capabilities. The results of an Apriori analysis can be utilized for improving the
configuration process by introducing soft constraints, consolidating the product
structure by joining components or modules and finally for improving production
planning and control.
5.3
A Method for Specification of Multi-Variant Products using
Degrees of Freedom of Shape Attributes in Product
Structures
Paul Christoph Gembarski, Roland Lachmayer
Contact:
Paper ID 033
Abstract: Planning multi-variant products in the early stage of the design process
is still a challenge. In the present paper a specification technique is introduced in
47
order to define multi-variant products using degrees of freedom of shape attributes (in
the following shape-DoFs) within product structures. Our goal is to plan variety at the
beginning of product development actively. Shape-DoFs are classified in the fields of
shape attributes (dimension, position, shape as well as their combinations) on the one
hand and mandatory or optional components on the other hand. Set up on this
taxonomy graphical symbols are introduced for use in product modeling. As
application example a pipe rack is modeled.
5.4
A Profile Chart Approach for Defining the Solution Space of
a Production Network
Lars Skjelstad, Maria Thomassen
Contact: Lars Skjelstad ([email protected])
Paper ID 062
Abstract: Abstract. Norwegian leisure boat manufacturers have experienced a
transition from large to small production series during the last years following a
general decline in demand. They are forced to transform large scale operations into
handling small volumes of highly customized products while maintaining the same
level of cost efficiency. Literature presents several frameworks that can help to "crack
the code" of mass customization. However, the mass customization strategy is still
little understood and deployed in industry. There is thus a need to develop more in
depth understanding of how companies can get started and enhance their mass
customization capabilities. This paper presents a chart approach for defining the
solution space of a leisure boat production network. Opportunities and limitations of
the suggested approach are also addressed.
5.5
Applying the 5 WHYs to identify rot causes to noncompletions in on-site construction
Søren Lindhard
Contact: Søren Lindhard ([email protected])
Paper ID 013
Abstract: In on-site production mass customized sub products are assembled
through standardized processes. The production is pushing mass customization to the
edge by producing unique and complex products. Due to the project structure it has
proven difficult to avoid repetitions of problems and to learn from mistakes. A central
part of the control framework Last Planner System is to identify not completed
activities to identify root causes and to learn. One tool to investigate root causes is the
5 WHYs approach. The 5 WHYs approach has been applied in a case study research
to analysis the root cause to not completed activities. In total 17 not completed
activities were registered and analyzed. To reduce non-completions the risks each
activity is carrying should be analyzed and understood, the product should be
followed to identify problems early and to reveal time for intervention, and finally
communication onsite should be strengthened.
48
5.6
Challenges in Request Management – Demand management
of customer-driven product development
Anita Sommer
Contact: Anita Sommer ([email protected])
Paper ID 048
Abstract: Request Management (RQM) is a new term used for managing customer
requests for new products. It is the counterpart to typical product development
processes, which has no direct customer involvement. It is essential to manage
customer requests in a structured and efficient way to obtain profitability. This
research study seeks to investigate the challenges of RQM in practice. Existing
demand chain management literature is used as a basis for developing a RQM
framework. RQM is investigated through an explorative research design in a dyadic
B2B case study including a global industrial company and its customers. The study
provides an insight into a new area of supply chain management, including the
process activity flow and challenges involved across the process. Furthermore, the
method is dyadic including the customer in the case study, which is rare in related
research.
5.7
Customization Issues - A Four Level Customization Model
Kaj A. Joergensen, Thomas Ditlev Brunoe, Stig Taps, Kjeld Nielsen
Contact:
Paper ID 061
Abstract: Implementation of Mass Customization and Product Configuration in
companies requires fundamental considerations about how products can fulfil the
demand from customers. In order to support such decisionmaking, a multi-level
model for customization is developed. This model identifies four different levels of
customization, ranging from the structure level at the bottom, through the
performance level and the experience level to the learning level at the top. The model
also has a dual view with customers/demand at one side and product/supplier at the
other side. It is a rather general model, which can be applied to many types of
products and, typically, product designers must decide how far up in levels the
customization should aim. In this paper, the four level customization model is applied
to wheel chairs.
5.8
Danish Public Construction Counselling Selection and
Assignment Criteria in European Tendering
Jesper Kranker Larsen, Lene Faber Ussing, Thomas Ditlev Brunoe
Contact: Jesper Kranker Larsen ([email protected])
Paper ID 014
49
Abstract: One of the largest customers in the Danish construction industry is
public agencies which own and develop projects. For some of the counselling services
they recur to be put out in European tendering.
The aim is to find which selection and assignment criteria are used most in public
tendering. How projects use selection and assignment criteria for counselling services,
and finally if there is significant use of selection and assignment methods in public
counselling.
The method is based on 74 public counselling tenders from the European Tenders
Electronic Daily database from January 2010 to March 2013. A following standard
error and Fisher's exact test was conducted to test if there were any significant
relations.
Results indicate that invited tender with pre-qualification and most economically
advantageous offer in 57.1 % of the tenders are the most used selection and
assignment criteria in public counselling services.
5.9
Describing Product Variety using Set Theory
Thomas Ditlev Brunoe, Kjeld Nielsen, Kaj A. Joergensen, Stig Taps
Contact: Thomas Ditlev Brunoe ([email protected])
Paper ID 063
Abstract: Three capabilities: solution space development, robust process design
and choice navigation are critical for mass customizers. In order to become and stay
competitive it is proposed to establish assessment methods for these capabilities. This
paper investigates the usage of set theory as a means for developing metrics and
assessment systems. It is concluded that set theory cannot be used as an assessment
method directly but is useful in the development of metrics.
5.10 Delays in the Apparel Manufacturing Industry’s
Implementation of Mass Customization
Jocelyn Bellemare, Serge Carrier, Pierre Baptiste
Contact: Jocelyn Bellemare ([email protected])
Paper ID 042
Abstract: Past research has demonstrated the importance of understanding the
mass customization of clothing within the context of trade globalisation, which has
led to ever more ferocious competition in the apparel industry. But, why is the apparel
manufacturing industry so late in understanding this? This paper outlines and
discusses the possible causes of the delays of mass customization in the apparel and
fashion industry. The study first identifies (based on a number of interviews with
apparel producers) the performance indicators and the integration of technologies
necessary for the implementation of a system of mass customization in the clothing
industry. The interviews with these producers reveal certain factors and characteristics
that can explain this delay. The principal cause is the lack of integration between
50
technologies currently in place and those offered by suppliers which do not
adequately respond to the needs of manufacturers and distributers.
5.11 Designfunding: An Inquiry-Tool for Mass Customization
Matthias Kulcke
Contact:
Paper ID 039
Abstract: Designfunding is defined as a unique category of crowdfunding. It is
described and explored regarding its potential to become a major inquiry-tool for the
preliminary gathering of data as a basis for the conception of mass customization
products.
5.12 Does
Customer Co-Creation Really Pay Off? An
Investigation Into The Firm’s Benefits From Customer
Involvement In New Product And Service Development
Marcel Weber, dirk van der laan
Contact:
Paper ID 038
Abstract: The active involvement or co-creation of customers in the innovation
process is nowadays very common for firms. Since the awareness that it also entails
the involvement of customers many organizations have taken this step. Until now
research has mainly focused on the question why customers indulge on such requests
and what they get out of these participations. However, little attention has been given
to the benefits firms reap from co-creation initiatives. This research tries to bridge that
gap and investigates the outcomes organizations perceive from co-creating with their
customers. From a dataset containing research data on co-creation by 154 Dutch
organizations we investigate how this co-creation affects innovation success, financial
results, reputational results and organizational benefits.
5.13 Design
and Evaluation of a Reconfigurable Manufacturing
System
Shuai Zhang, Yang Li, Arne Bilberg, Ronen Hadar
Contact:
Paper ID 007
Abstract: In modern manufacturing industry, reconfigurable manufacturing
system (RMS) is a promising concept in the research arena. A new RMS system
structure has been recently designed by a large consumer goods manufacturer in
Europe, aiming to improve its production efficiency. This article shows an
exploratory research on the (re)configuration procedure and evaluation of the RMS
philosophy based on the new RMS structure, which is part of the RMS research in
51
University of Southern Denmark. Tecnomatix Plant Simulation is used for system
analysis and optimization. Results from simulation show that the RMS implemented
in this consumer goods manufacturer can be effectively (re)configured as part of the
daily operations, and the configuration is analyzed by computer simulation before
release. Flexibility can be increased considerably meanwhile the system can maintain
an acceptable productivity.
5.14 Design Configurator Requirements for IS Integration
Pasi Paunu, Marko Mäkipää
Contact: Marko Mäkipää ([email protected]), Pasi Paunu ([email protected])
Paper ID 032
Abstract: Configurators are essential tools in mass customization. While sales
configurators and product configurators have received a fair amount of attention, a
new type of configurator has emerged for area of order engineering: design
configurator. Design configurators can be used to automate order engineering and
decrease lead-time for product quotations and customized designs. Thus, they can
bring ETO companies closer to mass customization. In literature the concept of design
configurator has been suggested and this paper examines the requirements of such
configurator for IS integration through illustrative case example. By determining the
requirements and integration possibilities of design configurator this study will
greatly benefit different industrial contexts when considering a configurator solution.
5.15 Enabling Facilitation of Mass Customization via Partnering
in the Construction Industry
Kristian Ditlev Bohnstedt
Contact: Kristian Ditlev Bohnstedt ([email protected])
Paper ID 023
Abstract: In the past decades, the manufacturing industry has gone through
dramatic improvement in productivity, cycle time and inventory level of
manufacturing applying information and manufacturing technology. However, the
construction industry has not yet been able to enjoy similar magnitude of
improvements. The aim of this paper is therefore to investigate which of the normally
used procurement forms in the Danish construction industry would facilitate the
implementing mass customization. Benchmark results from 2318 cases were obtained
from The Benchmark Centre for the Danish Construction Sector containing
information on the realization processes and the integration of customers likely to
answer the question of which procurement or contract form that would best
accommodate the facilitation of near mass customization performance. To test this a
one-way ANOVA comparisons was used and it was found that partnering and turnkey
contracts significantly enhances the likelihood of facilitating the implementing mass
customization than all other contract forms.
52
5.16 Enablers of innovation in the construction material industry
Soren Wandahl, Astrid Heidemann Lassen, Alexia Jacobsen, Søren Bolvig Poulsen
Contact: Astrid Heidemann Lassen ([email protected])
Paper ID 056
Abstract: The construction industry is viewed as network or supply chain based,
which creates a strong interdependence between the different supply network partners
and can be a hindrance for innovation. Innovation models must embrace such a
contemporary business structures, where competition often takes place between
supply chains rather than between individual companies.
The research design is based on explorative case studies. By applying case study as
method the research is drawn towards inductive research, where we investigate
patterns suitable for generalization on enablers for innovation. In total six cases of
successful innovation is investigated.
The conclusion of this research validates that open innovation in a network
approach is a precondition for a successful innovation journey in the construction
industry.
5.17 Extending
Configuration and Validation of Customized
Products by Implicit Features in Virtual Reality
Environments
Angel Bachvarov, Stoyan Maleshkov, Dimo Chotrov
Contact: Angel Bachvarov ([email protected])
Paper ID 031
Abstract: The Virtual Reality is an environment which enables the proactive
participation of the customers in defining their needs and requirements within product
development process. However, the traditional approaches for representation of
physically existing objects (products) using VR show only a few of their properties
(geometric, structural, and topological). The potential of VR as technology for
efficient validation of still not-materialized artifacts in the early design stages could
not be fully used. In order to improve the immersion and to enable customers in
configuring more aspects of the newly created customized products as well as to
validate these through “experiencing” we proposes the concept of so called implicit
features representing “hidden” product properties (i.e. magnetization, surface
roughness, humidity) which normally are not part of the object model, cannot be
perceived directly and are not given for configuration. Here we discuss the implicit
feature concept, their implementation and their use for Customer-Co-Design.
53
5.18 Extending
the Theoretical
Framework
of
Mass
Customization: Initial and Adaptive Solution Space
Development for High-Variety Production Environments
Frank Steiner
Contact: Frank Steiner ([email protected])
Paper ID 003
Abstract: In today’s markets customer needs are becoming increasingly
heterogeneous. In response to the diverse customer needs, companies are oftentimes
forced to offer a broad product variety in order to meet the individual demands of
their customers. Being confronted with such a business environment, manufacturers
need to establish new business models that are capable of dealing with high levels of
heterogeneity, such as mass customization. However, as offering limitless choice is
economically unfeasible, manufacturers have to develop a suitable solution space by
clearly defining which product variants will be offered and which options will be
explicitly excluded from the firm’s offering. In this context, this paper introduces the
distinction between initial and adaptive solution space development (before and after
market launch) and discusses the interrelation between these two modes of defining a
product offering for high-variety production environments.
5.19 Flexible
Laser Metal Cutting, An Introduction to the
ROBOCUT Laser Cutting Technique
Sigurd Villumsen, Steffen Nordahl Joergensen, Morten Kristiansen
Contact: Sigurd Villumsen ([email protected])
Paper ID 044
Abstract: This paper describes a new flexible and fast approach to laser cutting
called ROBOCUT. Combined with CAD/CAM technology, laser cutting of metal
provides the flexibility to perform one-of-a-kind cutting and hereby realise mass
production of customised products. Today’s laser cutting techniques possess, despite
their widely use in industry, limitations regarding speed and geometry. Research
trends point towards remote laser cutting techniques which can improve speed and
geometrical freedom and hereby the competitiveness of laser cutting compared to
fixed-tool based cutting technology such as punching. This paper presents the
concepts and preliminary test results of the ROBOCUT laser cutting technology, a
technology which potentially can revolutionise laser cutting.
5.20 Food Customization – An Analysis of Product Configurators
in the Food Industry
Monika Kolb, Paul Blazek, Clarissa Streichsbier
Contact: Monika Kolb ([email protected]), Paul Blazek ([email protected])
Paper ID 029
54
Abstract: Product customization offerings appear in a growing number of
industries. When looking at the customization potential of food, customer preferences
in terms of taste tend to diverge a lot. In addition, there are different needs like
nutrition and health which lead to a more heterogeneous diet. These factors enable a
perfect playground for the concept of mass customization. 88 existing online food
configurators, which are listed in the Configurator Database, have been identified and
analyzed. The objective of this paper is to provide the status quo of the food and
beverages industry in the market of mass customization. The results shall show
insights and implications for creating a food customization project.
5.21 Generative Design Approach for Modelling of Large Design
Spaces
Bastian Sauthoff, Roland Lachmayer
Contact: Bastian Sauthoff ([email protected])
Paper ID 022
Abstract: Mass customisation of mechanical and mechatronic products requires
computer aided configuration tools including parametric models of the product. For
an extended individual adaption approaches including iterative configuration
processes are necessary. Knowledge-Based Engineering Systems (KBES) are
developed for this kind of customisation tasks among other things but they are still
not universally applicable and accepted in the industry. Thus in this paper an
approach for the modelling of large design spaces by parametric models is presented.
This approach implies a confinement of the widely defined pretension of KBES by a
systematic modelling of practical conversant design solutions. In contrast to the
modelling of higher-level design rules the exclusion of inexpedient variants is
completely possible. The detailed aspects of the approach consisting of a structural
design, effective areas and design elements are illustrated in this paper as well as
methodological aspects. The application is demonstrated by a wheel carrier design.
5.22 How to Squeeze a Configurator into a Handheld Device
Homero Schneider, Marcos Espindola, Yuzo Iano
Contact: Homero Schneider ([email protected])
Paper ID 002
Abstract: In this paper, it is presented the implementation of a solar powered
pumping system configurator based on a new approach for the modelling of the
configuration process of product families. An important outcome of this approach is
that if a few modelling conditions are satisfied, deriving product family members
becomes a direct (backtrack-free) process. Consequently, a configuration problemsolving process that typically would require a high-performance computer can be
squeezed into handheld devices as a standalone program.
55
5.23 InnoTracing:
Investigating
the
Moment-to-Moment
Unfolding of Leadership, Creativity and Innovation
Ian Sutherland, Paul Blazek, Birgit Penzenstadler, Hans Lundberg, Hagen Habicht
Contact: Birgit Penzenstadler ([email protected]), Paul Blazek ([email protected])
Paper ID 011
Abstract: In researching the crucial drivers in innovation processes it becomes
more and more clear that social interactions at a micro-level play an important role
when it comes to user innovation. InnoTracing sheds light on understanding what
happens in the black box of emergent, situated processes by looking at what
participating users regard as their particular "moments of significance" (MOS). The
usage of the newly developed software tool InnoTrace allows real time data gathering,
aggregating and analyzing and works within the methodological concept InnoTracing
as fundamental enabler for identifying previously invisible innovation and leadership
effects. This software and methodology combination offers researchers and
companies the ability to understand how collaboration processes among innovators
work and provides valuable insights on how to create a supporting environment.
5.24 Implementation of BIM in the Danish building Sector
Lene Faber Ussing, Jesper Kranker Larsen
Contact: Lene Faber Ussing ([email protected]), Jesper Kranker Larsen ([email protected])
Paper ID 041
Abstract: The Danish building sector has now for some years worked for
implementation of BIM in the whole building process. In practice it seems with the
long way from the wish of using BIM in the whole building process to what really
happens on the projects and building sites. To get an idea of how long the BIM
implementation has come in the sector, a contractor company at present involved in
one of the biggest public construction projects in Denmark was contacted to survey
some employees at the project, because such a project ought to be one where BIM is
best implemented. This survey shows the building sector is implementing BIM, but
there are still big challenges to solve both internally in the company and externally
both in the immediate environment and distant environment.
5.25 Introducing
Mass Customization to SMEs in Furniture
Industry: A Case Study
Nikola Suzic, Zoran Anišić, Cipriano Forza
Contact: Nikola Suzic ([email protected])
Paper ID 015
Abstract: Even though much insights has been gained by academic research on
mass customization (MC), companies still suffer from a lack of guidelines and
supports that help them in the process of implementing mass customization. The
56
paper presents an approach to help small and medium enterprises (SMEs) in
implementing MC by illustrating its actual application in SME operating in the
furniture industry. Possibilities of mass customization implementation in the case
company and more generally in the SME furniture manufacturers are discussed in the
conclusions of the work.
5.26 Integration
System of Mass Customization and Mass
Production as a Market-Oriented Production System
Akinori Ono, Seiji Endo
Contact: Seiji Endo ([email protected]), Akinori Ono ([email protected])
Paper ID 027
Abstract: Mass customization (MC) fills individual customers’ needs. However, it
typically modifies an existed mass produced product. Mass production (MP), on the
other hand, roughly meets typical customers’ needs. However, with efforts to fill
underlying needs, it could provide destructively innovative products. Hence, it can be
said that these two production systems are corresponding with two kinds of market
orientations: responsive and proactive market orientations. This study empirically
show that MC s related to responsive market orientation, which fits needs to MC
products based on existed MP products, while MP is related to proactive market
orientation, which fits needs to experience innovative products that have never been
seen before. We imply that most innovative companies with both kinds of market
orientations should continue to develop destructively innovative MP to surpass their
customers’ expectation and, concurrently, they should provide MC products based on
the MP products to increase the customer values.
5.27 Is
Sustainable Mass Customization an Oxymoron? An
empirical study to analyze the environmental impacts of a
MC business model
Golboo Pourabdollahian, Marco Taisch, Frank Piller
Contact: Golboo Pourabdollahian ([email protected])
Paper ID 035
Abstract: For about two decades Mass Customization is considered as a proper
business model for the markets characterized by heterogeneous needs of customers. It
can be considered as a win-win strategy that benefits both customers and companies.
However when it comes to environmental impacts of mass customization things are
less clear and more challenging. This paper aims at investigating how a mass
customization business model performs in terms of environmental sustainability based
on an empirical analysis.
57
5.28 Living
Lab Methodology as an Assessment Tool for Mass
Customization
Lynn Coorevits, Constantijn Seys, Dimitri Schuurman
Contact: Lynn Coorevits ([email protected])
Paper ID 016
Abstract: Mass customization has been regularly used as a growth strategy during
the last decades. The strength of this approach stems from offering products adjusted
to customers’ individual needs, resulting in added value. The latter resides in the word
‘custom’, implying unique and utilitarian products allowing for self-expression of the
consumer.
Researchers and practitioners however, predominantly focused on the company’s
internal processes to optimize mass customization, often resulting in market failure.
As a response, a framework with five factors determining the success of mass
customization was developed. Additionally Living Lab methodologies have been used
to improve innovation contexts that were too closed. This paper will fill a gap in the
literature by demonstrating that the integration of the five factor framework in the
Living Lab methodology is well suited to determine the possible success or failure of
a mass customized product in the market by means of a single case study.
5.29 Making
It Personal: Rules for Success in Product
Customization
Neil Patil, Kent Deverell, Elizabeth Spaulding
Contact: Neil Patil ([email protected]), Kent Deverell ([email protected])
Paper ID 012
Abstract: Fluid, Inc. proposes a keynote address presenting the largest research
report on consumer product customization by Bain & Company with significant
contributions from Fluid. The report explains how brands investing in customization
are discovering that they can elevate customer loyalty and engagement – and use their
customer base as an engine of advocacy to potential buyers. Participants will learn:
The results of the survey of more than 1,000 online shoppers and their
customization preferences including, “while less than 10% have tried customization
options, 25% to 30% are interested in doing so.”
The results of the survey of more than 1,200 global executives across a range of
industries including, “By providing customization options, brands raise loyalty at a
time when it’s more important than ever. 67% believed their customers are becoming
less loyal to their brand.”
The five most important rules to follow when creating successful product
customization programs.
58
5.30 Managing
Process Customisation for the Capital Goods
Sector. An Application Case Study
Juan Manuel Besga, Juan Carlos Astiazaran, Patxi Zubizarreta
Contact: Juan Carlos Astiazaran ([email protected]), Juan Manuel Besga ([email protected]),
Patxi Zubizarreta ([email protected])
Paper ID 020
Abstract: The capital goods sector is characterised by a limited number of large
orders with a high degree of customisation. This means neither products nor processes
are standardised, making it difficult to accurately determine delivery times, often
resulting in non-fulfilment. This paper describes a conceptual model used in a
methodology for defining a reliable production system regarding both delivery times
and cost, enabling companies to reach achievable commitments with customers and
improve their responsiveness to major changes in demand. This model is based on
defining and scheduling generic assembly processes that can be customised for each
particular order. The description of the conceptual model is illustrated by an
application case study at a hydraulic presses manufacturer.
5.31 Mass
Apparel Technology Integration and Development:
Apparel Made for You (AM4U©)
Muditha Senanayake, Peter Kilduff, Bill Grier
Contact: Muditha Senanayke ([email protected])
Paper ID 065
Abstract: The apparel supply chain today is driven by risk based forecasting and
planned over production at every link and has been discussed as highly unsustainable.
Even though number of researchers and commercial technology companies has
attempted to address this issue, up until now, there was no viable alternative to this
overstock, discount and wasteful retail cycle. With the availability of communication
and retail technologies the modern consumer demands more customized and
personalized apparel products that need to be supplied quickly. Considering these
dynamics a group of educators with the collaboration of technology companies is
developing a Demand Manufacturing (DM©) and Purchase Activated Manufacturing
(PAM©) business architecture named Am4U. This embrace ecommerce solutions and
business integration systems, body scanning, fabric and accessory dyeing, printing
and imprinting and computer integrated manufacturing. The team is currently
developing its first Integrated Mini Factory (IMF©) that can demonstrate DM© and
PAM© under one roof.
59
5.32Mass-Customization-Service-Encounters:
The Influence of
the Co-Design Process Structure on Performance
Miriam Oversohl, Moritz Wellige
Contact: Moritz Wellige ([email protected])
Paper ID 028
Abstract: Increasingly, companies offer customizable products to consumers. This
study investigates how the different layouts of a co-design-process effect customers´
perception and evaluation of the process and its outcome as well as the productivity of
the process from the companies´ point of view. In an experiment which was carried
out with a mass customization provider in the field of shoes, the authors find that a
more structured co-design-process reduces cus-tomers´ perception of complexity and
decreases duration time necessary to serve customers. However, some expected
effects could not be confirmed in the experiment. More specifically, the modifications
show no affect on outcome variables like customer satisfaction. Nevertheless, this
study provides some val-uable implications for how companies can design their codesign-processes to increase the productivity and decrease complexity.
5.33 Mass Customization and Performance Assessment: Overview
& Research Directions
Simon Haahr Storbjerg, Thomas Ditlev Brunoe, Kjeld Nielsen
Contact: Simon Haahr Storbjerg ([email protected])
Paper ID 060
Abstract: Mass Customization (MC) has been introduced as the future of
manufacturing, and great results have been proven. Recent research, however,
documents a high failure rate for companies trying to adapt to MC as a business
strategy. Making this transition is, as highlighted by several scholars, an enterprise
transformation that requires strategic control mechanisms. This paper contributes to
existing MC literature with an overview and analysis of available MC performance
assessment methods. Shortcomings of the literature are identified and directions for
future research given.
5.34 Mass Customization Measurements Metrics
Kjeld Nielsen, Thomas Ditlev Brunoe, Stig Taps, Kaj A. Joergensen
Contact: Kjeld Nielsen ([email protected])
Paper ID 058
Abstract: A recent survey has indicated that 17 % of companies have ceased mass
customizing less than one year after initiating the effort. This paper presents
measurement for a company’s mass customization performance, utilizing metrics
within the three fundamental capabilities: Robust Process Design, Choice Navigation
and Solution Space Development. A mass customizer can when assessing
60
performance with these metrics identify within which areas improvement would
increase competitiveness the most and enable more efficient transition to mass
customization.
5.35 Mass
Customization as Innovation Driver of International
Competitiveness in Peripheral Regional SME Subcontractors
Stig Taps, Kjeld Nielsen, Thomas Ditlev Brunoe, Kaj A. Joergensen
Contact: Stig Taps ([email protected])
Paper ID 064
Abstract: The manufacturing literature has for long been occupied with the linking
of manufacturing capabilities with the competitive advantages of the company. The
dominant manufacturing content approach is concerned with the consistent set of
decisions about process technology design and organizational practices that can be
exploited as competitive capabilities.
This paper suggest that an open network structure demand a transformation of
peripheral located SME subcontractor from traditional customized producer to mass
customized producer. Mass customization as an instrument for the transformation
process consisting of practical tools on many different company levels will comply
with the challenges the international competition chart.
5.36 Mass customization systems are not one-size-fits-all
Bin Fang, Akinori Ono, Seiji Endo
Contact:
Seiji Endo ([email protected]), Akinori Ono ([email protected]), Bin Fang
([email protected])
Paper ID 018
Abstract: Although a mass customization system can better satisfy customers’
needs, some customers prefer MP products to MC products. Firms supply products
with their single customization system which is standardized, in spite of it not being
the desirable customization system for customers in different markets. We
hypothesize that MC products are preferred in order to meet customers’ individual,
detailed needs in the markets where the all basic needs of the product category have
already been satisfied, while an MP product is preferred in the market in where the
basic needs for the product category are not satisfied yet. The results of empirical test
with quantitative data from Chinese automobile market show that “customized
customization systems” are necessary.
5.37 Mechatronic
Behavior
Manufacturing Cell
Analysis
of
a
Customized
Paryanto Paryanto, Matthias Brossog, Jochen Merhof, Jörg Franke
Contact: Paryanto Paryanto ([email protected])
61
Paper ID 001
Abstract: Analyzing the mechatronic behavior of a manufacturing cell used in a
customized manufacturing process is a difficult task with numerous obstacles.
Therefore, a method that can be easily used for developing and optimizing a
customized manufacturing cell, i.e. universal contacting module (UCM) cell, for the
in-circuit testing of electronic modules is desired. In this paper, we present a
convenient method using multi-domain simulation tools for analyzing the
mechatronic behavior of the UCM cell. The UCM cell, which consists of mechatronic
components such as a six-axis industrial robot and conveyor systems, were
successfully modeled, simulated, and validated under several payloads. This work
also presents a modeling procedure that can be applied by system engineers with a
basic background in control systems for analyzing the mechatronic behavior of
manufacturing cell components.
5.38 Modelling
and Organising Customer Driven Business
Process in a Mass Customization Environment
Hans-Henrik Hvolby, Chris Martin, Heidi Dreyer
Contact: Hans-Henrik Hvolby ([email protected])
Paper ID 053
Abstract: The techniques of mass customisation in the manufacturing area are
being challenged by more recent trends of made to order processes. This paper
reviews the relevant literature dealing with the challenges of determining spe-cific
made to order processes. The researchers then use a case study approach to gain
insights into what are the new demands on planners and schedulers. Two case studies
in Denmark are highlighted. The researchers found that the tasks of planning business
processes in the order flow is likely change in the future as increased adaptation to
customer ordering takes place, which will force changes to staff training and company
re-organization.
5.39 Multidisciplinary product decomposition and analysis based
on design structure matrix (DSM) modelling
Tufail Habib
Contact: Tufail Habib ([email protected])
Paper ID 026
Abstract: DSM modelling in complex system design support to define physical
and logical configuration of subsystems, components and their relationships. This
modelling includes product decomposition, identification of interfaces and structure
analysis to increase the architectural understanding of the system. Since product
architecture has broad implications in relation to product life cycle issues. In this
paper, mechatronic product is decomposed into subsystems and components and then
DSM model is developed to examine the extent of modularity in the system and to
manage multiple interactions across subsystems and components. For this purpose,
62
Cambridge advanced modeler (CAM) software tool is used to develop the system
matrix. The analysis of the product (printer) architecture include clustering,
partitioning as well as structure analysis of the system. The DSM analysis is helpful to
support decisions about product redesign and modularization.
5.40 Open Innovation: Creating Value through Co-creation
yaghoub zahedi, Maryam Raeyat
Contact: yaghoub zahedi ([email protected]), Maryam Raeyat ([email protected])
Paper ID 017
Abstract: Research in the field of open innovation and creating value through cocreation is somehow new. The main objective of this study is to answer a question:
How open innovation help companies in creating value through co-creation activities?
In order to do so, the authors conducted a qualitative research, using interview and
focus group sessions. The result indicates four main strategies that companies could
follow in different situations. These strategies were: (i) Cor-rective product/service
improvement, (ii) incremental product/service improvement, (iii) Crawling
product/service improvement, (iv) Radical prod-uct/service improvement.
5.41 Open
Innovation, Co-creation and Mass Customisation:
What Role for 3D Printing Platforms?
Thierry Rayna, Ludmila Striukova, John Darlington
Contact: Thierry Rayna ([email protected])
Paper ID 045
Abstract: Both open innovation and 3D printing technologies have attracted a lot
of attention recently. Our main aim is to investigate the role of online 3D printing
platforms in open innovation with customers. There are four main contribution in this
paper. Firstly, it offers a better understanding of the relationship of open innovation,
co-creation and mass-customisation and indicates in which case they overlap.
Secondly, it provides an `inside-outside' typology of co-creation that enables to
classify co-creation activities according to their aim and type of collaboration. The
third main contribution is a typology of online 3D Printing platforms, based on their
core services. Finally, by combining the two typologies, we are able to demonstrate
the role played by each platform based on type of co-creation activity considered.
5.42 Paradigm in the 21st Century
Donald Rattner
Contact: Donald Rattner ([email protected])
Paper ID 006
Abstract: The image of the artist as a solitary figure who creates art that is
autonomous, physically inviolable and subject to fluctuating prices has remained
63
relatively constant since the gallery system was established in the mid-19th century.
The advent of computer-aided-manufacturing and mass customization now threatens
to replace or augment that paradigm with a more democratic alternative. This talk
examines the potential form the new paradigm may take and presents several
examples of artists using mass custom technologies to create contemporary art.
5.43 Product, Organizational and Performance Effects of Product
Modularity
Henrike Boer
Contact: Henrike Boer ([email protected])
Paper ID 043
Abstract: A lot has been written about the performance effects associated with
implementing a higher degree of product modularity in a firm’s product portfolio.
However, these findings are mostly based on case research in the electronics and
automotive industries and have hardly been tested and generalized beyond these
industries. To be able to establish whether firms not part of these industries would
experience the same performance effects, survey research will be needed. To support
future survey research, this paper proposes an operationalization of product
modularity and details the link between product modularity and firm performance, to
support the future development of measures and hypotheses.
5.44 Production and Resource Scheduling in Mass Customization
with Dependent Setup Consideration
Izabela Nielsen, Grzegorz Bocewicz, Ngoc Anh Dung Do
Contact: Izabela Nielsen ([email protected])
Paper ID 034
Abstract: Mass customization has been implemented in services and manufactures to increase the competition of companies. In a manufacturer, procedure for
production and resource scheduling has to be changed to adapt to mass customization. A good production and resource scheduling will contribute to the success of
mass customization. This paper is aimed to deal with the problem of production and
resource scheduling for a production system with dependent setup and internal
transportation such as AGVs in mass customization environment. Constraint
Programming based methodology is developed to satisfy the demands of customers
on-time. An example is presented to illustrate the performance of proposed
methodology.
5.45 Scaling
up local and individualized solutions, challenging
existing logic
Nicola Morelli
64
Contact: Nicola Morelli ([email protected])
Paper ID 021
Abstract: This paper is based on a recently completed EU funded project, aimed at
creating location based and socially networked services to support elderly people
independent life. The project team created a platform of services for elderly people in
four EU locations. It included the development of a business model to ensure the
economic sustainability of the services beyond the funding period. Elderly people, as
commonly known, are reluctant to use new technology and are especially diffident of
open social networking systems, because of the openness of those systems, that risks
to undermine the urgent need of trust and safeness. The Life 2.0 platform is highly
related to a real life context of senior people. This has implications on the scalability
of the platform. This paper analyses the lesson learned and proposes some insights on
how the diffusion of innovation based on local and personal solutions challenges the
common scalability logics.
5.46
Strategic Capabilities to Manage High-Variety Production
Environments: The Role of Underlying Activities and
Organizational Resources
Frank Steiner, Moritz Wellige
Contact: Frank Steiner ([email protected])
Paper ID 004
Abstract: Product offerings with a high number of product variants have become a
standard in today’s industrial manufacturing sector, and are also becoming
increasingly popular in business-to-consumer markets. Increasingly more companies
pursue such a strategy as they hope to benefit from the competitive advantage that
arises from the opportunity to address every customer individually. However,
adapting a respective business model for high-variety production demands profound
organizational change. Existing research suggests that companies have to develop
certain strategic capabilities when implementing such business strategies. Still, most
studies lack a sufficient level of detail in the discussion of these strategic capabilities
and remain vague regarding underlying management activities and organizational
resources. With this study, we provide more detailed definitions of the strategic
capabilities of mass customization. Furthermore, we identify a comprehensive set of
underlying management activities and organizational resources and thereby facilitate
the realization of the strategic capabilities for practitioners.
5.47 The Impact of the Arrangement of User Interface Elements
on Customer Satisfaction in the Configuration Process
Paul Blazek, Klaus Pilsl
Contact: Paul Blazek ([email protected])
Paper ID 030
65
Abstract: Configuration systems are important drivers for the concept of mass
customization. One of the main challenges when conceptualizing, designing and
implementing such a configuration system is the creation of an appropriate user
interface. The recent literature covers a lot of different findings, which criteria a B2C
product configurator should fulfill to offer the customer an optimal customization
process. A case study by Streichsbier et al. identified de-facto standards according to
the position and availability of certain web elements within the user interface of
configurators of the automobile, apparel and electronic industries. As the identified
standards vary within the industries, for the following study only the apparel industry,
strictly speaking T-shirt configurators, are considered. The empirical aim of the
present study, based on user observation, is to find out whether or not the structure of
a configurator’s user interface has an influence on the customers´ process satisfaction.
5.48 The Series of “P.L.A.Y”- A Combination of User Experience
Design and Footwear Design
Shuwen Wu, Luming Yang, Qi Zeng, Yang Xu
Contact: Shuwen Wu ([email protected])
Paper ID 066
Abstract: User Experience Design (UED) has already been applied in many
aspects including IT industry, costume design, etc. Unfortunately, this concept was
only brought to the world of footwear design in recent years. In this paper, “User
Experience Design (UED) Concept” was introduced. The developing history, current
situation of UED and the successful examples were also analyzed. The applied
methods and specific procedures were summarized through this process to seeking the
differences and individuality in the developing process of footwear design. Besides,
design sketches and concrete shoes were designed and manufactured by using UED
concept to test the research results. As a result, the probability of combining footwear
design and UED concept was studied in this research and the contents of footwear
design were also enriched through this research, which aimed at bringing new
experience to consumers so that better connections would be built between consumers
and designers through UED footwear.
5.49
The Use of Modelling Methods for Product Configuration in
Industrial Applications
Lars Hvam, Martin Bonev, Anders Haug, Niels Henrik Mortensen
Contact: Martin Bonev ([email protected])
Paper ID 019
Abstract: Developing product configuration system requires extracting and
representing domain expert knowledge in appropriate product models. As
acknowledged by researchers, this is often one of the most challenging activities in
configuration projects, where only little empirical insights have yet been reported.
This article investigates the challenge on how industrial companies model their
66
product configuration systems. The study is based on interviews of 18 industrial
companies using configuration systems for configuring customer-tailored products. It
investigates the relationship between using a structured modelling technique for
modelling product families relative to less or no formal approaches. Furthermore, the
study explores the specific characteristics of configuration set-ups with respect to size
and complexity and their effect on product variant management and availability of
product knowledge in organizations. The results empirically validate the need for a
suggested systematic modelling approach for large and complex configuration
projects and its positive effect on the overall performance of companies.
5.50 Understanding
Complex Construction Systems through
Modularity
Tor Clarke Jensen, Baris Bekdik, Christian Thuesen
Contact: Christian Thuesen ([email protected])
Paper ID 036
Abstract: This paper develops a framework for understanding complexity in
construction projects by combining theories of complexity management and
modularization. The framework incorporates three dimensions of product, process and
organizational modularity with the case of, gypsum wall elements. The analysis finds
that the main driver of complexity is the fragmentation of the design and production,
which causes the production modules to construct and install new product types and
variants for each project as the designers are swapped for every project. The many
interfaces are characteristics of an integral system, rather than a modular, although the
industry forces modular organizational structures. This creates a high complexity
degree caused by the non-alignment of building parts and organizations and the
frequent swapping of modules.
67
Notes
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