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Purpose -To identify and examine the origins of complexity in a mass customization system and to propose an effective application sequence of variety management strategies in order to cope with this complexity.Design/methodology/approach -Through the application of Suh's complexity theory an understanding of the causes of complexity in the specific context of a mass customization environment is developed. This facilitates the identification of the strategies that are adequate to tackle the problems induced by complexity.Findings -The mass customization system is a coupled system that cannot be mastered simply. It is definitely impossible to transform it to an uncoupled system with low complexity level. However, the effective and targeted implementation of variety management strategies at the product and process levels enables the management of this complexity by making the system more decoupled.Practical implications -Complexity can be decreased if managers ensure less dependency between the satisfaction of customer requirements and position of the decoupling point. It is also advantageous to reduce the coupling level between fast delivery requirement in mass customization and the decoupling point placement. Furthermore, an effective variety management calls for the implementation of the identified strategies in an ascending order of complexity reduction potential.Originality/value -The article relates the complexity theory of Suh to mass customization system, provides a framework for the classification of variety management strategies and derives managerial recommendations so as to reduce the complexity in a mass customization environment.
The paper assumes a product design around modular architectures and discusses the suitability of the principle of delayed product differentiation in assemble-to-order environments. We demonstrate that this principle does not enable one to make optimal decisions concerning how variety should proliferate in the assembly process. Therefore, we propose to complement this principle in that we additionally consider the variety induced complexity throughout the assembly process. The weighted Shannon entropy is proposed as a measure for the evaluation of this complexity. Our results show that the delayed product differentiation principle is reliable when the selection probabilities of module variants at each assembly stage are equal and the pace at which value is added in the whole assembly process is constant. Otherwise, the proposed measure provides different results. Furthermore, the entropy measure provides interesting clues concerning eventual reversals of assembly sequences and supports decisions regarding what modules in an assembly stage could be substituted by a common module.
Abstract:Large product variety in mass customization involves a high internal complexity level inside a company's operations, as well as a high external complexity level from a customer's perspective. To cope with both complexity problems, an information system based on agent technology is able to be identified as a suitable solution approach. The mass customized products are assumed to be based on a modular architecture and each module variant is associated with an autonomous rational agent. Agents have to compete with each other in order to join coalitions representing salable product variants which suit real customers' requirements. The negotiation process is based on a market mechanism supported by the target costing concept and a Dutch auction. Furthermore, in order to integrate the multi-agent system in the existing information system landscape of the mass customizer, a technical architecture is proposed and a scenario depicting the main communication steps is specified.
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