Running head: MASS CUSTOMIZATION AT HEWLETT-PACKARD 1

Mass Customization at Hewlett-Packard: The Power of Postponement

Student’s Name
Institutional Affiliation
MASS CUSTOMIZATION AT HEWLETT-PACKARD: 2

Mass Customization at Hewlett-Packard: The Power of Postponement

Question 1: What is the difference between Customization and Mass Customization?
Explain.
There is a slight difference between customization and mass customization. Mass
customization primarily deals with the act of a company making changes in a bid to satisfy a
particular group of consumers. In addition to that, these changes help the company in reducing
production costs since it does not supply only one or two customers but it will satisfy most of the
customers. On the other hand, customization is the act of changing different goods and services
to make sure that they meet the needs of a customer (Lee & Feitzinger, 1996). The process of
customization is expensive compared to mass customization since if the company works to
satisfy the needs of each customer, they will end up making different products. This will incur
more costs to the company.
Question 2: What are the requirements in terms of Product design and Process design to
enable Mass Customization? Explain with examples.
The requirements of product design in a bid to enable mass customization are that there
should be the flexibility of the product. This means that the product can be designed into
different designs as mass customization takes place to satisfy the needs of the customers and the
customization of a product is done quickly and inexpensively. The other requirement is that the
product must not be standardized; it should have a dedicated power supply. For instance,
Hewlett- Packard Company has successfully carried out the implementation of a standardization
strategy for the LaserJet printer (Lee & Feitzinger, 1996). This strategy works mainly in North
America and Europe. One of its partners in Japan creates a core engine of the printer which is
shipped to Europe and North America via the sea. Before the LaserJet was designed for mass
customization by Hewlett- Packard and its partners, the printer had a dedicated power supply of
between 110- 220 volts. This power supply made the company to easily differentiate between the
product and its end- customer market as soon as the production was initiated in Japan. The
differentiation was to know if the product went hand in hand with the customers’ preference.
The modular process design should also be flexible. The production process should be
divided into sub-processes that help the firm uses to enable mass customization to take place.
Three principles govern this approach. The first is process postponement. A perfect example of
this is the way in which various paint stores and hardware match the colors of the paint on their
buildings. The second principle is processed re-sequencing, and the third is process
standardization. The Hewlett- Packard Company standardized the earlier portions of the process
of production (Lee & Feitzinger, 1996). In a bid to improve flexibility, there was a postponing
differentiation aimed at increasing the supply network. For instance, the disk- drive division of
Hewlett- Packard supplied NeXT, AT& T, and Hewlett- Packard with disk drivers. Before this,
there were problems in matching supply with the demand since there was a revision by the
customers on their orders during the final minute.
Question 3: Can mass customization be applied in the context of a Service? Explain with
examples.
It is true that mass customization can be applied in the context of a service. The reason is that
mass customization takes place after the company knows what people want and what they expect
of the products. For instance, the Hewlett- Packard firm came up with a strategy that aimed at
standardizing the LaserJet printer to satisfy the needs of the company (Lee & Feitzinger, 1996).
MASS CUSTOMIZATION AT HEWLETT-PACKARD: 3

Reference
Lee, Hau & Feitzinger, Edward (1996). “Mass Customization at Hewlett-Packard: The Power of
Postponement.” Havard Business Review.