Simulation Model Development for Determination of Components Production Quantity and Lead Time Reduction in Mass Customisation of Single Production Stage

Abstract

Market rivalry forces manufacturing companies to be customer focus and have an agile system. In manufacturing companies that produce semi-common products based on customer order, the pressure from customers are usually faster delivery, reasonable price and higher product variability. This paper presents the use of Mass Customisation (MC) concept in order to cope with faster delivery and higher product variability. The MC concept is realised by determining Customer Order Decoupling Point (CODP). Besides MC, Theory of Constraint (TOC) concept is also applied in order to address problem that may occurred after MC implementation. Based on a simulation analysis, it shows that CODP implementation could improve delivery lead time and product variability performance dramatically up to 5.15 times compared to existing system. An optimisation algorithm is also proposed for further study in order to improve cost performance of the products.