Focusing customer demand through manufacturing supply chains by the use of customer focused cells: An appraisal

Abstract A key driver for manufacturing change in the 1990s is that of customer choice, whereby customers are demanding new, more innovative products with greater variety. The attributes of quality, price and level of technology are seen as `qualifiers', which allow the manufacturers entry into a market sector. To maintain or increase market share, manufacturers seek product differentiation through other attributes such as availability and variety. This paper examines the role that customer demand, especially changes in demand, plays in influencing supply chain structures, in terms of flexibility, responsiveness and resource utilisation, as they become more customer focused. It considers the ability of JIT Manufacturing to match customer demand more closely than conventional manufacturing strategies and highlights some weaknesses in the JIT approach. By the use of three case studies, the paper then explains how in certain circumstances, this can be improved by focusing on individual customers through customer focused cells .