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National Bicycle Industrial Company - Case Study Example
Author : ethylstokes
Pages 10 (2510 words)
The current paper describes the details of the operation’s mission. This research aims to evaluate and present the operational problems faced by the company in implementing mass-customization strategy and operation objectives that were required to achieve the mission…
Center of discussion in this paper is National Bicycle Industrial Company as a leading manufacturer of bicycles. It mass customizes bicycles, wherein it produces bicycles, which fit exactly to a customer’s weight and color preferences. Their key to success in this arena is through the use of computer-aided design and computer integrated manufacturing, along with the maintenance of a customer database. The company management had decided to use a revolutionary and innovative production system, which they named as the ‘Panasonic Order System’. This system made use of state-of-the art techniques in bicycle production through a combination of robots, computers and skilled workers. Thus, the system was an amazing blend of human skills and advanced technology. The purpose of implementing mass-customization strategy was to increase the company’s production of high-value added products. The company wanted to give customers the opportunity of ordering a bicycle according to their specific requirements by giving these requirements, directly to the factory. They wanted to implement a system which set aside their Panasonic brand from other similar brands in the market. The mass-customization strategy was first conceived by the company’s managing director. He felt that if women could custom order their clothes, why couldn’t bicycles be produced in the same way. This idea came at a time when the bicycle industry was seeing very sluggish sales, and the price that a customer was willing to pay for a bicycle was dropping. ...