Managing demand and supply uncertainties to achieve mass customization ability

Liu, Gensheng; Shah, Rachna; Schroeder, Roger G.

doi:10.1108/17410381011086801

Cited by 35 publications

(21 citation statements)

References 66 publications

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“…creation of slack resources, environmental management, creation of self-contained tasks, use of computer-based information systems, and utilisation of lateral relations) are viable when mass customisation is the goal. In keeping with Liu et al (2010), we argue that creation of slack resources is not a viable option in this case. The reason is that creating slack resources means to reduce performance targets (Galbraith 1977), whilst transition from custom manufacturing to mass customisation necessitates improving operational performance and transition from mass production to mass customisation ideally requires that operational performance be preserved (Hart 1995, Beaty 1996.…”

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confidence: 84%

Organisation design strategies for mass customisation: an information-processing-view perspective

Trentin

Forza

Perin

2012

International Journal of Production Research

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The need to transform the organisation for mass customisation has long been recognised in literature, but the discussion has largely relied on anecdotal evidence or case studies and has limitedly taken advantage of insights from organisation theory. In this paper, we draw on organisational information-processing theory to develop solid theoretical links between mass customisation capability and four organisation design strategies aimed at either increasing an organisation's information-processing capacity or decreasing its informationprocessing needs. We then test the hypothesized relationships using a sample of 238 manufacturing plants from three industries and eight countries, and find that mass customisation capability is positively related to self-containment of tasks, environmental management, and use of lateral relations. We conclude by discussing implications of our results for both research and practice.

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confidence: 84%

Organisation design strategies for mass customisation: an information-processing-view perspective

Trentin

Forza

Perin

2012

International Journal of Production Research

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“…Managing demand and supply uncertainties is critical for all manufacturers (Liu et al, 2010). Lee (2002) suggests that supply and demand uncertainties are decisive for the strategy: efficiency is appropriate for products with low demand uncertainty (functional products) in the case of low supply uncertainty (stable process).…”

Section: Strategy Selectionmentioning

confidence: 99%

Selecting the right supply chain based on risks

Wieland

2013

Journal of Manufacturing Technology Management

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Purpose -The purpose of this paper is to propose a model that enables a company to select the supply chain strategy based on risk probability p (measure of how likely/often a detrimental event occurs) and risk impact i (expression of the significance of a loss when that event occurs). Design/methodology/approach -This paper discusses four supply chain strategies: agility, robustness, resilience and rigidity. Mathematical models are used for the strategies' cost functions, which reveal optimal solutions and break-even points in dependence of p and i. Findings -This paper proposes that resilience is appropriate in the case of high supply chain risk probability and impact, and rigidity if both values are low. When only risk impact is low, robustness is optimal, whereas agility is optimal when only risk probability is low. Research limitations/implications -This research extends existing models for selecting the appropriate supply chain strategy. Practical implications -Knowledge of the interplay between the strategies' cost functions and risk probability and risk impact is vital for companies. This may encourage managers to become more familiar with their strategy costs and supply chain risks. Originality/value -To the author's knowledge, no corresponding model exists so far that links risk impact and risk probability to the four supply chain strategies.

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“…Most of these studies examined organizational design features or manufacturing practices that facilitated the acquisition of MC ability. These factors include quality management practices (Kristal, Huang, & Schroeder, 2010), information technology (Peng et al, 2011), product modularity (Ahmad, Schroeder, & Mallick, 2010), work design practices (Liu et al, 2006), functional integration (Liu et al, 2012), organizational structure (Huang, Kristal, & Schroeder, 2010), learning (Huang, Kristal, & Schroeder, 2008), supply chain planning and management practices (Liu & Deitz, 2011), and supply chain uncertainty management practices (Liu, Shah, & Schroeder, 2010), etc. Only two studies examined the performance consequences of MC and they found that MC had a direct positive impact on operational performance (Liu et al, 2012) or competitiveness (Ahmad et al, 2010).…”

Section: Research Methods and Designmentioning

confidence: 99%

When to Mass Customize: The Impact of Environmental Uncertainty*

Liu¹,

Shah²,

Babakus³

2012

Decision Sciences

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Previous research on mass customization (MC) has focused on what it is and how it is implemented. In this study we examine when MC is an appropriate strategy for firms to follow by scrutinizing the effects of three environmental uncertainty variables (demand uncertainty, competitive intensity, and supply chain complexity) on the MC–performance relationship. Specifically, we distinguish the direct effect of environmental uncertainty on MC ability and the moderation effect of environmental uncertainty on MC ability's impact on customer satisfaction. We examine six competing hypotheses using data collected from 266 manufacturing plants. Our results show that competitive intensity has a direct positive impact on MC ability. However, demand uncertainty moderates the relationship between MC ability and customer satisfaction, and the direct and positive relationship between MC ability and customer satisfaction holds only when customer demand is highly uncertain. Supply chain complexity neither has a direct relationship with MC, nor moderates the MC–performance relationship. Implications of these research findings are discussed and future research directions are identified.

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Managing demand and supply uncertainties to achieve mass customization ability

Cited by 35 publications

References 66 publications

Organisation design strategies for mass customisation: an information-processing-view perspective

Organisation design strategies for mass customisation: an information-processing-view perspective

Selecting the right supply chain based on risks

When to Mass Customize: The Impact of Environmental Uncertainty*

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