Title: Leading practices for design-to-cost of mass customisable products

Authors: Michael Slamanig; Christopher Schorling; Rüdiger Stern

Addresses: Accenture Management Consulting, Operations Business Domain, Innovation and Product Development Offering Group, Accenture GmbH, Anni-Albers-Straße 11, 80807 Munich, Germany. ' Accenture Management Consulting, Operations Business Domain, Innovation and Product Development Offering Group, Accenture GmbH, Anni-Albers-Straße 11, 80807 Munich, Germany. ' Accenture Management Consulting, Operations Business Domain, Innovation and Product Development Offering Group, Accenture GmbH, Anni-Albers-Straße 11, 80807 Munich, Germany

Abstract: While implementing the concept of mass customisation, manufacturers in the past mainly focused on ways of fulfilling individual customer needs to enhance product differentiation. This one-sided focus led to a permanent increase in product-related costs due to the growing complexity of the products and their underlying processes. Activities to improve the cost structure of existing mass-customisable products during their market cycle are frequently limited by constraints in product design and process stability. However, examples from best-in-class companies show that an early integration of product cost considerations into the development process offers comprehensive possibilities of significantly limiting the 'allowed' level of product costs without losing the potential for differentiation. In this paper, based on our experience from several consulting projects, we demonstrate which design-to-cost approaches leading mass customisers currently undertake to rebut the presumption that customer- and function-relevant features are in contradiction to cost-effective product design.

Keywords: mass customisation; product cost management; design-to-cost; leading practices; product cost structure; product design.

DOI: 10.1504/IJMASSC.2012.047394

International Journal of Mass Customisation, 2012 Vol.4 No.3/4, pp.126 - 151

Available online: 18 Jun 2012 *

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