From manufacturing to mass customization Mats Ekblad Electrolux AB

§ 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

Kitchen has become the heart of the home

Needs are globalizing

3

Consumers seeks new sources for inspiration…

4

…wherever they are…

5

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

6 Source: Forrester

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

7

How do we address both high and low end with a compelling offer?

8

Focus on differentiated branded product offer

Benefits of scale in: §  Manufacturing §  R&D §  Purchasing §  Common components/

modules §  Common processes

and shared services

Low cost, lean go-to-market Market set price

Sharp customer focus Shared global strength Premium

Mass

Do you get paid for being differentiated?

9 Source: replicatorinc.com

How do you avoid creating complexity?

10

Open Innovation

Mass Customization

Manufacturing

Modularization

11

Modularization

12

Mass Customization

13

Open Innovation

Module assembly leads to shorther throughput time

14

Degree of line assembly

100 %

50 %

Throughput time

Part assembly

Module manufacturing

Module assembly

Manufacturing

Moduflex project

15

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.