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04/19/23 1
Gensheng (Jason) LiuPh.D. Candidate
Operations and Management Science DepartmentCarlson School of Management
University of Minnesota
August 6, 2005OM Division PhD ConsortiumAnnual Meeting of AoM, Hawaii
A Configurational Approach to Mass Customization and Its Implications for
Work Design
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Dissertation
Title On Mass Customization: Configurational and Contingency perspectives
Dissertation Committee Roger Schroeder (Advisor, OMS) Rachna Shah (Advisor, OMS ) Susan Meyer Goldstein (OMS) Christopher Bingham (Statistics)
Stage: Will defend proposal in two months
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Dissertation
Research questions Are there different patterns in manufacturers’ achievement on mass
customization capabilities? Does work design has any impact on manufacturers’ achievement on mass
customization capabilities? When is mass customization the most appropriate strategy for a manufacturer? What are the cultural and structural factors that facilitate the achievement of a
manufacturer’s mass customization capabilities?
Primary research methodology: Cross-sectional survey
Unit of observation: Plant
Practical contribution: Better understanding of implementation conditions and facilitating factors of mass customization.
Academic contribution: Empirically investigate conceptually stated principles about mass customization.
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A Configurational Approach to
Mass Customization and Its Implications for Work Design
Dissertation Research Essay 1
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Outline
Research Motivation
Propositions and Hypotheses
Methods
Results
Discussion
Summary and Conclusion
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Research Motivation
Mass Customization: A New Production Paradigm
Key drivers Increasing customer demand for product variety and customization Shortening life cycle of products Technology development
Definition The ability of a firm to quickly produce customized products on a large scale at a
cost comparable to non-customized products (Tu et al. 2001).
Research Da Silveira et al. (2001): “Literature on mass customization implementation is still
incipient. Most claims are drawn from limited case examples or based on educated guesses from authors rather than from hard evidence obtained through exhaustive research.”
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Research Motivation
Achievement of Mass Customization Capabilities
Mass customization strategy is only appropriate for certain market situations (Hart 1995, Salvador et al. 2002)
Not all companies that pursue mass customization strategy actually succeed (Pine et al. 1993, Zipkin 2001)
Human resource management has an impact on mass customization (Lau 1995, Kakati 2002)
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Research Motivation
Research Questions
Are there different patterns in manufacturers’ achievement on mass customization capabilities?
Does work design has any impact on manufacturers’ achievement on mass customization capabilities?
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Propositions & Hypotheses
Proposition 1: Manufacturers can be classified into distinct groups based on their achievement on various mass customization capabilities.
A configurational approach toward mass customization (taxonomy)
An extant typology of mass customizers (Duray et al. 2000) Degree of customer involvement in product design Degree of product modularity
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Propositions & Hypotheses
Sociotechnical systems perspective on work design Fit between social subsystem and technical subsystem within an
organization Nine principles (Cherns 1978 & 1987) Applications in OM
Cellular manufacturing (Huber & Brown 1991) Lean production (Niepce & Molleman 1998)
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Propositions & Hypotheses
Hypotheses 1a-j: In work design, compared to other manufacturers, mass customizers use more of the following factors.
STS Principles Measures Hypothesis
Compatibility; Minimal critical specifications
Employee empowerment 1a
Variance control; Information flow
Feedback to shopfloor employees 1b
Autonomous maintenance 1c
Multifunctionality; Boundary location
Multifunctional employees 1d
Management breadth of experience 1e
Cellular manufacturing setup 1f
Support congruence Shopfloor assistance to employees 1g
Task-related training for employees 1h
Human values Human goodness 1i
Incompletion Continuous improvement and learning 1j
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Methods
Sample and data collection “High Performance Manufacturing” project 6 countries: U.S., Germany, Finland, Sweden, Japan, and Korea 3 industries: machinery, electronic, and automotive 189 plants
Measurement 7-point Likert scales Mass customization capabilities scale based on Tu et al. (2001)
Data analysis Cluster analysis for proposition 1 ANOVA for hypotheses 1a-j
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Methods
Mass customization capabilities scale
MC1: We are highly capable of large scale product customization.
MC2: We can easily add significant product variety without increasing cost.
MC3: Our setup costs, changing from one product to another, are very low.
MC4: We can customize products while maintaining high volume.
MC5: We can add product variety without sacrificing quality.
MC6: Our capability for responding quickly to customization requirements is very
high.
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Results I: Empirical Taxonomy
Derivation of the cluster solution
Outlier detection – 172 plants retained
Two-stage cluster analysis Hierarchical cluster analysis – 3 cluster solution most viable K-means cluster analysis
Final cluster centroids
Group 1: non-customizers; Group 2: inefficient customizers; Group 3: mass customizers
Variable MC1 MC2 MC3 MC4 MC5 MC6 n
Group 1 4.849 3.818 3.989 4.302 4.791 4.851 74
Group 2 5.898 4.263 3.789 5.471 5.404 5.822 57
Group 3 5.768 5.297 5.435 5.841 5.898 5.862 41
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Results I: Empirical Taxonomy
Validation of the cluster solution
Replication A second nonhierarchical analysis: 95.3% overlap Split sample replication: 91.0% and 76.2% overlap
ANOVA on cluster variate Only 3 out of 18 comparisons not significant, but all as expected
Discriminant analysis Both discriminant functions significant. Cross-validation: Jack-knifing procedure results misclassification rate of
4.1%.
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Results I: Empirical Taxonomy
Validation of the cluster solution
Predictive validity Manufacturing flexibility: mix flexibility and volume flexibility Product modularity (Duray et al. 2000) Time-based manufacturing practices (Tu et al. 2001) All variables are significantly different between the three groups as
predicted by theories or extant research
Contextual factors of mass customization Country effect: Germany has more inefficient customizers and Japan
has more non-customizers. No industry, plant size, or plant age effect
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Results I: Empirical Taxonomy
Proposition 1
Proposition 1 supported: Manufacturers have different patterns in terms of their achievement on various mass customization capabilities
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Results II: Work Design For Mass Customization
Group 1 Group 2 Group 3
Non-Customizers Inefficient Customizers Mass Customizers F-value
n = 74 n = 57 n = 41 (sig.)
EMPOWER -0.253 (2) 0.184 (1) 0.182 4.05 (.019)
FEEDBACK -0.167 (3) -0.203 (3) 0.359 (1,2) 4.76 (.010)
AUTOMAIN -0.388 (2,3) 0.084 (1) 0.421 (1) 9.90 (.000)
MULTIEMP -0.375 (3) -0.009 0.411 (1) 9.67 (.000)
MGTEXP -0.097 (3) -0.266 (3) 0.405 (1,2) 6.17 (.003)
CELLULAR -0.287 (3) -0.163 (3) 0.538 (1,2) 10.50 (.000)
EMPASSIS -0.306 (3) 0.008 (3) 0.491 (1,2) 9.30 (.000)
TRAINING -0.358 (3) -0.001 0.404 (1) 8.66 (.000)
GOODNESS -0.368 (2,3) 0.065 (1) 0.486 (1) 11.14 (.000)
CIMPROVE -0.291 (3) -0.037 0.286 (1) 4.58 (.012)
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Results II: Work Design For Mass Customization
Hypotheses 1a-j
Hypothesis 1a marginally supported: Mass customizers empower employees marginally more than non-customizers.
Hypotheses 1b-j all supported: All these work design factors have
significant effect on the achievement of mass customization capabilities.
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Discussion
Work design has important impact on mass customization. From the sociotechnical systems perspective, to successfully implement mass customization strategy, the social system should fit the technical system.
Human resource bundles (MacDuffie 1995, Ichniowski et al. 1996)
All work design factors contribute to customization ability.
Among the work design factors, assistance to employees, feedback to employees, management breadth of experience, and cellular manufacturing setup also contribute to customization efficiency. Inefficient customizers have even less management breadth of
experience and feedback to employees than non-customizers.
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Contribution & Limitation
Contribution The first empirically based taxonomy of mass customization. Apply sociotechnical systems theory in mass customization
research. Empirically investigate the relationship between work design and
the achievement of mass customization capabilities, especially identify the work design factors that contribute to efficiency of customization.
Limitation Work design factors not complete from the sociotechnical
systems perspective (i.e., human values)
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Related research
A contingency approach toward mass customization: When is mass customization the most appropriate strategy for a manufacturer?
Cultural and structural factors that facilitate mass customization