1 THE NATIONAL BICYCLE INDUSTRIAL COMPONY IMPLEMENTING THE STRATEGY OF MASS CUSTOMIZATION Team Members: Abhinav Amresh Ankit Sushant Sangram
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THE NATIONAL BICYCLE INDUSTRIAL COMPONY
IMPLEMENTING THE STRATEGY OF MASS CUSTOMIZATION
Team Members: Abhinav Amresh
Ankit Sushant
Sangram
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Japanese Bicycle Industry It began around 1868
1st time European bicycle introduced in Japan
Japan government modeled their structure after western governments
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Meiji Restoration The Meiji Restoration , also known as
the Meiji Ishin, Revolution or Renewal, was a chain of events that restored imperial rule to Japan in 1868. The Restoration led to enormous changes in Japan's political and social structure, and spanned both the late Edo period (often called Late Tokugawa shogunate) and the beginning of the Meiji Era.
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The Japanase Bicycle industry is in operation since this period
It was done to remove the isolation from the rest of the world
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Arrival of foreign bicycle As foreigners came they brought the cycles
with them For repairs they depended on local
assistance of hunting gun shops Skills acquired to repair guns motivated
shop owners to apply their talent to repair bicycle
This led to production of bicycle modeled after European bicycle
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Bicycle demand grew rapidly in Japan due to strong growth in economy and consumer demand
In 1973 , “Oil Shock” had a major impact on Japan and bicycle production dropped over 18%
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Introduction
NBIC is a 2nd largests manufacturer of bicycle in 1992
Sales close to 20 Billion yen A subsidiary of Japanese industrial Giant
Matsushita Introduced a system Panasonic order System(POS) Gained national & international attention world over Became the envy of competitors
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Marketed bicycles under 3 brands-Panasonic, National & Hikari
Panasonic bicycles for premium consumer which accounts for 20% sales
Began to sell and manufacture bicycle in 1952
NBIC sold its bicycle to 10 sales companies
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Mass production
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Which sold to approximately 9000 retailers which were part of Matsushita group
Regular meeting held to discuss sale trends and manufacturing concern between NBIC and Sales Companies`
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Mass Customization Strategy
Idea introduced by the President of NBIC To custom bicycles the way women
customize their dresses Average unit price for customer was
dropping Average price for sporting bikes were
increasing but the segment was not growing
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Mass Customization Objective NBIC had two objectives – Wanting to double their amount of high value
added products Wanted to devise a system of production and
delivery to differentiate them from competitors In June 1987 they unveiled a strategy in bicycle
industry called ‘Panasonic Ordering System’
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Panasonic Ordering System
Order process- customer orders a high end bicycle to a POS equipped retailer
Notes the requirement by taking measurement and gauging machine
Customer selects color, seat, model type and other features
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Panasonic Order System
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POS Form
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After filling the form dealer sends the information to control room of custom made factory
From there it goes to firm host computer to register and control customer order specification
Host computer assigns a unique bar code level
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Requirements are accessed through bar code level by line workers
Displayed through a CRT terminal at each station
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Manufacturing Process Foundation of POS lies in design and
manufacturing capabilities of NBIC Exclusively built machines for POS Development work carried out by firm own
design and process engineer with assistance from parent company
Software built internally by NBIC engineer
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Production system begins when CAD system located in control scans the bar code level to access customer information
A blue print of bicycle is made in 3 minutes Frame and Front Fork Production-involves cutting of
tubes that form the frame of bicycle Quality Check- complete frame and fork production
is put on a 3D Automatic Measuring Machine
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Checks the actual measurements And corrects the variations if detected any Painting-prevents the early rusting of frame
and improve the surface for paint Then transferred to a preliminary room for
15 mins to be automatically painted by a robot
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Robot receives information through barcode label from host computer
NBIC is the 1st company to introduce robot in painting process in bicycle
After this two skilled workers gives the final touches using electrostatic spray guns
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Labeling & Engraving Process-printing or engraving customer name or any specification.
Done using a silk screen process The frame is ready for final assembly after
this
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Final assembly & Shipping- mating of frame with wheels , chains, gears , brakes and other equipments.
During this Derailleur & Rotation adjustment of bearing section are done
Entire manufacturing of one customized bicycle required 150 minutes
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A year after POS company introduced PICS (Panasonic Individual Customer System)
To offer custom made bicycle to overseas customer.
Delivery time was increased from 2 weeks to 3 weeks in this system
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Marketing & Distribution Appropriate pricing and extensive
communication Guranteed 2 weeks time delivery To make consumers exited about it Under POS factory was given responsibility
to communicate to customers
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Response to POS Competitor copy their system Company like General Motor visits and
study their operation Extensive Media Coverage
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Thank you