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Management

Management

The Role of Kaizen in Mass Customization for Industrial Environments

And how existing continuous improvement techniques can be applied to how goods and services are designed, produced, and delivered to meet unique customer requirements.

By Rochelle Cook PhD, CMBB, PMP, CPHQ
Female engineer monitoring and analyzing conditions at a modern tech electronics factory using a tablet.

Image Source: gorodenkoff / iStock / Getty Images Plus

August 8, 2024
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Mass customization (MC) emerged nearly four decades ago with the aim to satisfy individualized customer requirements while maintaining costs and quality. As a result, accelerated demands were placed on industries to meet operational goals. While quality philosophies such as kaizen exist in these industrial spaces, few studies focus on the role it plays in managing the critical tenets of mass customization. The paper explores to what degree kaizen is connected to mass customization practices. An analysis of recent literature will connect societal trends and the application of kaizen, a continuous improvement tool, to unique customer requirements and industry outcomes. As a result, suggestions about how existing continuous improvement techniques can be applied to how goods and services are designed, produced, and delivered to meet unique customer requirements will be offered.

Introduction

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Mass customization, the leveraging of automation, information, and technology to produce large quantities of unique goods and services while maintaining cost and quality, contributes to the growth and competitiveness of organizations. [1]. While other advances exist such as Industry 4.0 and 5.0, mass customization remains relevant due to its degree of flexibility which enables organizations to meet customer expectations. Mass customization is characterized by increased varieties delivered in high productivity environments at a low cost [1]. Moreover, the impact of this phenomenon includes the ability to sustain market presence and competitiveness [2].

An organization’s longevity in mass customization is driven by the people, processes, and technology that integrate and apply its elements effectively. Techniques such as kaizen help facilitate that longevity. Kaizen is a continuous improvement methodology that involves small incremental improvements made with the intent to continuously set and obtain higher performance standards. [3].

Kaizen is typically applied from the time a customer order is received to the time the customer receives the product or service. The results are achieved through a fully engaged workforce. Kaizen is deployed as part of a larger business strategy despite its evolutionary nature. The consistent company-wide participation facilitates a culture of agility, adaptability, and innovation amid ever-changing customer requirements. When applied to a larger business strategy, kaizen is a building block for continuous flow, flexibility, and long-term success [4].

2. Problem Description

Organizations that effectively manage technology, information, and human capital in mass customization environments tend to maintain a competitive presence in their respective industry. Customers expect their unique requirements to be delivered on time, right the first time, and the way they want it. In addition, kaizen is globally relevant and continues to contribute to various industries’ business results.

Literature tends to focus on the benefits of mass customization, particularly in sectors that were born out of traditional production practices. Studies also tout the positive impact mass customization has on achieving success while keeping costs low and quality high. Few studies describe how continuous improvement approaches such as kaizen play a role in evolving from mass production to mass customization. What contributions does kaizen make to enhance mass customization? What are opportunities for kaizen to be initiated and applied to sustain business outcomes?

3. Methodology

A literature review was conducted to understand the role kaizen plays in mass customization. Specifically, factors such as design, process, and delivery were explored. The themes that emerged magnify the role kaizen plays in mass customization efforts. Based on the findings, proposed applications of kaizen to support mass customization will be offered.

4. Related Research

Recent literature provides information about mass customization and what it represents to various industries. Key points magnified in the literature include: the role that design and technology plays in mass customization, how the effective coordination of human capital and technology facilitate mass customization efforts, and how the delivery elements impact organizations.

When it comes to aligning customer requirements with the organization’s capacity to deliver, the design of a product or service is a key driver. Therefore, facilitating what customers want is critical to the success of mass customization [5]. Techniques such as set based concurrent engineering (SBCE) enable groups of ideas to be tested which provides flexibility during the process of identifying the customer requirements [6].

Technology influences the outcomes of mass customization, but it doesn’t stand alone. People must make sure the technology can meet the design requirements. In the case of mass customization, technological requirements extend beyond the product and includes communicating with the customer during the ordering process. [6]. Organizations that align systems with the people that maintain them influence the overall experience of defining customer wants and designing the same product or service to meet a variety of unique customer requirements.

How do organizations leverage existing processes to produce the customers’ individualized requirements? This requires adequate contributions among technology, knowledge, and human collaboration [6,]. Kaizen plays a role by exposing value added and non-value-added steps which influences employees to adjust technology, physical and virtual space, and other factors. Therefore, human intervention through kaizen tools and techniques help to position technology to thrive in mass customization.

Lastly, how efficiently are organizations getting the unique product or service to the customer? The role of Suppliers when it comes to mass customization is significant [7]. For instance, the Suppliers’ ability to adapt to and comply with the large number of unique requirements is a strong determinant of their ability to meet the demands of the customer [7].

5. Results

Based on the literature review, the following gaps exist. First, harmony between customer expectations and improvement ideas drive the degree of alignment with mass customization. There are few studies that measure the relationship the two factors. Organizations that foster an environment of empowerment for designers and developers can impact the flexibility that is needed. However, what degree of autonomy do designers have? Depending on the industry, product type, and other factors, this could appear as an enabler or a deterrent to the growth of mass customization.

Also, studies tend to suggest that there are multiple ways to address individual customer expectations. Kaizen represents gradual and multiple improvements over time. While kaizen efforts are in motion, the impact may not manifest when required by demands of mass customization.

Lastly, as customer requirements change, and the need to meet them through mass customization increases, what is the impact on the morale of the workforce impacted? The literature is generous in describing how advances in technology and information management has fostered this phenomenon, but to what degree do employees feel they can grow and advance alongside mass customization?

6. Suggestions

How can kaizen be optimized in mass customization environments? What practices promote and facilitate the tenets of kaizen in ways that sustain this phenomenon? Based on the literature review, the following is proposed to further integrate kaizen in mass customization practices.

First, consider leveraging technology to promote kaizen principles. How can kaizen practices such as value stream mapping be applied to ensure the best way to perform processes that produce products or services? Also, systems that maintain the accuracy and quality of the product while meeting a wide variety of unique orders adds credibility to the value that kaizen brings to an organization. Moreover, an organization that positions its technology for flexibility in mass customization spaces is perceived as forward thinking and innovative.

Secondly, keep a healthy balance between the attention that is invested in the mass variety of products ordered by customers and the improvement ideas that are initiated by the workforce that produce the product in the first place. Kaizen is used daily and can be integrated in new product development project processes. Making space for ideas to be tested and validated tends to promote an environment of empowerment and opens opportunities to prevent errors from occurring in an environment where a large amount of the same product is being produced.

Lastly, make sure problem-solving processes are encouraged as mass customization continues to impact the business. One of the benefits of kaizen is that the various techniques such as problem solving, root cause analysis, and collective decision making facilitate a culture of ownership. Having a workforce that can respond when customer demands seem unattainable builds cooperation, teamwork, and continuous improvement.

References

[1] Y. Wang, H. Ma, J. Yang, & K. Wang, “Industry 4.0: a way from mass customization to mass personalization production,” Adv. Manufacturing, vol. 5, pp. 311–320, 2017, https://doi.org/10.1007/s40436-017-0204-7

[2] G. Hui, A Al Mamun, M. Masukujjaman, Z. Khan, M. Makhbul, M. Ali, “The relationship between mass customization and sustainable performance: The role of firm size and global E-commerce,” Heliyon, vol.10, pp. 1 -18, 2024, https://doi.org/10.1016/j.heliyon.2024.e27726

[3] American Society for Quality, “Quality glossary of terms”, April 24, 2024. https://asq.org/qualityresources/quality-glossary/k

[4] B. Gajdzik, “Kaizen in Smart Manufacturing (SM) Projects: Framework and Examples of Improvement Areas”, Silesian University of Technology Publishing House, Scientific Papers of Silesian University of Technology Organization and Management,vol.169, pp.281-299,2023, http://dx.doi.org/10.29119/1641- 3466.2023.169.16

[5] P. Zipkin, “The Limits of Mass Customization”, MIT Sloan Management Review, pp. 81- 87, 2001

[6] H. Rocha, C. Souza, and D. Filho,” Mass Customization Enablement Through Lean Design & Set-Based Concurrent Engineering Application,” Journal of Operations and Supply Chain Management, vol. 7 no.2, pp. 124 – 139, DOI: http://dx.doi.org/10.12660/joscmv7n2p

[7] I. Ullah & R. Narain, “Linking supplier selection and management strategies with mass customization capability,” Journal of Business & Industrial Marketing, vol. 36 no.7, pp. 1213–1228, 2021, DOI 10.1108/JBIM04-2020-018

KEYWORDS: continuous improvement customization kaizen manufacturing Mass Customization (MC) metrology

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Rochelle Cook, PhD, CMBB, PMP, CPHQ, Adjunct Professor, College of Continuing and Professional Education, California State University Dominguez Hills.

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