From manufacturing to mass customization

Mats Ekblad Electrolux AB

Kitchen has become the heart of the home

Consumers spend doubled time in their homes Kitchens are increasingly the focus of consumers spending Home chefs require more specialized, premium equipment Health concerns favor modern kitchens Consumers want extra features

Needs are globalizing

Consumers seeks new sources for inspiration

wherever they are

 and their path to purchase is no longer solely in the hands of the salesperson

Source: Forrester

More and more we are looking for a differentiated offer that is relevant to our needs

How do we address both high and low end with a compelling offer?
Shared global strength Sharp customer focus Premium

Benefits of scale in: Manufacturing R&D Purchasing Common components/ modules Common processes and shared services

Focus on differentiated branded product offer Low cost, lean go-to-market Market set price

Mass
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Do you get paid for being differentiated?

Source: replicatorinc.com

How do you avoid creating complexity?

Modularization Open Innovation Mass Customization

Manufacturing

10

Modularization

11

Mass Customization

12

Open Innovation

13

Module assembly leads to shorther throughput time

Degree of line assembly

Part assembly

Manufacturing

100 %

Module manufacturing

50 %
Module assembly

Throughput time

14

Moduflex project

Individualism

Flexibility

Modularization

Standardization

An ongoing research project investigating manufacturing processes for combining open innovation, mass customization and modular production to manufacture individualized on-demand product series.

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