VARIETY AND INDUSTRIAL PRODUCTION: THE CASE OF HOUSING by CATHERINE CHIMITS-CAZAUX Architecte D.P.L.G. Unite Pedagogique d'Architecture de Bordeaux France, 1980 Submitted to the Departement of Architecture in partial fulfillment of the requirements of the degree of MASTER OF SCIENCE IN ARCHITECTURE STUDIES at the MASSACHUSETTS INSTITUTE OF TECHNOLOGY June 1984 @ Catherine Chimits-Cazaux 1984 The author hereby grants to M.I.T. permission to reproduce and to distribute publicly copies of this thesis document in whole or in part. Signature of Author.....................-;....... ......... Catherine Chimits-Cazaux Department of Architecture May 11, 1983 Certified by................................................ Eric Dluhosch Associate Professor of Building Technology Thesis Supervisor Accepted by................................................... N.John Habraken Chairman Departmental Committe on Graduate Students MASSACHUSETTS INSTITUTE OF TECHNOLOGY JUN 19 1984 L1BRAP . MITLibraries Document Services Room 14-0551 77 Massachusetts Avenue Cambridge, MA 02139 Ph: 617.253.2800 Email: docs@mit.edu http://Iibraries.mit.edu/docs DISCLAIMER OF QUALITY Due to the condition of the original material, there are unavoidable flaws in this reproduction. We have made every effort possible to provide you with the best copy available. If you are dissatisfied with this product and find it unusable, please contact Document Services as soon as possible. Thank you. The images contained in this document are of the best quality available. VARIETY AND INDUSTRIAL PRODUCTION: THE CASE OF HOUSING by CATHERINE CHIMITS-CAZAUX Submitted to the Department of Architecture on May 11, 1984 in partial fulfillment of the requirements for the degree of Master of Science in Architecture Studies ABSTRACT Industrial processes have addressed with various degrees of success the question of housing production. If assembly-line methods have proven their efficiency in the production and distribution of low-cost housing, they have been less successful in achieving product diversification, and now suffer from a negative image resulting from this weakness. On the other hand, open and closed systems, based on component kits of parts allowing various assemblies, show a greater potential for variety generation; but their implementation has to face resistances arising from the production systems themselves and from their implications in terms of product conception. Considering variety as an essential value in the richness of our environment, and regarding individual differences as a variety generator, the purpose of this work is to understand the match between people and industrial systems involved in housing production and to explore the capacity of industial processes in satisfying individual requirements. Thesis supervisor: Dr. Eric Dluhosch Title: Associate Professor of Building Technology. ACKNOWLEDGEMENTS To Eric Dluhosch, my advisor, To Ranko Bon , my reader, for his help and ideas for his advice To the French Government, for their help To Jackie, Makoto, Roland international S.M.Arch.S, Thank you and other members for the good moments of the A ma famille, pour leur affection toujours presente A Craig, pour les couleurs dans la neige et autres legendes a inventer TABLE OF CONTENTS ABSTRACT.............................. . . 2 ACKNOWLEDGEMENTS...................... INTRODUCTION........................................7-12 VARIETY WHY?.......................... I S. 13 1 Human needs and wants................. 14-15 2 Difference of needs................... 16-21 II WHAT VARIETY? THE QUESTION OF QUALITY A WAYS OF PRODUCING VARIETY............. a..22 1 Aleatory.............................. .23-24 2 Variation on a theme.................. .24-25 3 Combination........................... .25-26 PRODUCTION MODES AND VARIETY.................... .... Traditional production.......................... .28-31 Production by combination of standards elements. .32-34 From "diversity in 27 unity" to "difference in uniformity".................... ... 35-36 III VARIETY HOW? TOOLS IN CONTROL MANAGEMENT AND MARKETING A UNDERSTANDING THE DEMAND..............................37 Introduction......................... .... 038 Definitions.......................... .39-41 Methods for evaluating consumer's val ue system. .42-54 VARIETY AND PRODUCTION STRATEGIES.... .... The question of objectives........... .56-57 Production strategies................ .58-60 Variety and related concepts......... .61-63 Measurement of variety............... .64-70 The cost of variety.................. .71-80 Mixed strategies..................... .81-82 55 IV STRATEGIES IN COMPONENT PRODUCTION....................83 1 Closed systems.....................................84-85 2 From closed to open systems...........................86 3 Open systems.......................................87-88 4 Resistance to the development of open-systems......89-91 5 Defining components: central problem of industrialization...............92-96 CONCLUSION: BEYOND STANDARDIZATION, OTHER POSSIBLES ...97 1 New tools.........................................98-101 2 New methods......................................102-103 3 Universal machines for specialized markets....... 103-105 BIBLIOGRAPHY.......................................106-109 INTRODUCTION 1 The unquestioned efficiency of repetition 2 A controversial strategy 3 Accept the diversity of the market 4 Variety as a solution INTRODUCTION 1 THE UNQUESTIONED EFFICIENCY OF REPETITION theory in the application of technology component manufacture asserts the principles prevailing The building standardization architectural to of and mass-production as a panacea. From the theory of the pionners of Modern Architecture practice of developers a commercial the to system whole these principles. Although lowering the cost is perhaps not only and directly linked of idea of the efficiency of long series now a cultural fact which is hardly questioned anymore. is rests on buildings this repetition, Based it manufacturing, automobile infered is like industries, examples from other succesful on to through that and factory production of a limited number of parts, the building industry can output a larger mechanization standard volume cost. lower a at is idea This on based an conception of production engineering and in spite of serious efforts undertaken for the last 30 years to this strategy to component production, the building apply industry is still lagging behind, compared to other sectors; over-simplified moreover, there is no overwhelming proof that these efforts have met with any significant success. Provided it can rely on a continuous demand, mass-production intensive though capital is a particularly efficient, method. Attempts construction required for markets the thus have in been made order to provide to the efficiency of mass-production; constrain conditions but the failure of repetition as a principle to industrialization is the declarations of based on resistances that neither progressists architects been able to modify. nor governmental intentions have 2 A CONTROVERSIAL STRATEGY market of housing (and building in general) is diverse. The It geographically, segmented is and legislatively, To make large markets possible, the needs for buildings have to be aggregated, which types of economically. various conflicts with the diversity of demand. initially were housing many variety reduction cost oriented, was "how to repeat the same object as times as possible". Here can be mentioned the work of preoccupation their concerned with variety generation. Primarily than rather to practices of industrialization as applied and Theories architects of the Modern Movement, like Le Corbusier or Japanese Metabolists, who considered housing as a the the large "machine to live in" to be produced in good, a consumption cell, series. Their goal was to search for the ideal "norms", sociological possible account the maximum of into taking which, technical could be repeated as many and as times and assembled in structures of superior order, and then on to the level of optimized city-size organizations. Standardization and mass-production are often advocated on technical and economical grounds as the only means to answer shelter programs, post-war situations such as massive reconstruction they convey controversial etc..Indeed the concepts of order and series neutral and often ideologically are not when theory Corbusier's based on accerting: social "All utopies, men have as the the same functions. All men have the same organism, in Le same needs. The social contract which has evolved through the ages fixes needs producing and standardized classes, functions standardized by the law necessity". products" or later "Standardization is imposed and social of selection and is an economic 3 ACCEPT THE DIVERSITY OF THE MARKET Diversity conflicts with mass-production logic and questions its principles, but as the needs for products are demand a forces the manufacturers certain context diversity of materials housing to use techniques allowing level. Two forces design diverse, and are changing the First, new production. and technologies are emerging which enable strategies of production. consciousness about mass-production requirements Second, individual concept does not there is other a growing differences; the meet the people's and increasingly people want to participate in the decisions that shape their environment, their education, and their consumption. Considering these changes in market and production conditions, the question of industrialization must be formulated in an opposit manner: industrially compatible different with industrialization objects? Are "How to industrial architectural realize processes variety?". The of housing stresses variety production as a technical problem. 4 VARIETY AS A SOLUTION Resistance of the public is often viewed as a major obstacle to the expansion of industrialized housing. People industrialized economical loss in houses, only accepting them if reject imposed necessity, and often criticize the monotony quality of environments they constitute, by and while idealizing vernacular and other forms of Architecture of the past. New architectural trends, opposed to the dogmas of Modern Architecture, But now advocate variety as an essential quality. the variety of a project does not solve the problem of monotony This at the urban scale or any other aggregated level. is examplified in many suburban areas which share the IC) of undifferentiated aspect, which results from a lack same the and fabric the of simplicism formal between lack of intermediate clustering a hierarchy, the fragmented regularity of individual houses. the problem is not to generate variety for its Indeed, level the at sake would implemented, of each unit. solution, if monotonous as a Such lead to environments as own those generated by the repetition of a single form: too much variety is visually "noisy" and as disturbing as none. variety as a fundamental value in the richness of housing and environment, it is clear that only the Regarding our of differences among social groups and individuals ensemble can an warrant architecture of project the satisfying variety. Variety is both the problem and the solution. Since is no longer automatically generated by the production it it was in traditional forms (as system variety to has become consciously of architecture), intentionally and designed-in this system. The purpose here is not to mourn the lost paradise of craft production but to the factors understand that us make criticize today's fully factory built housing or composed of standard components as less succesful in achieving the kind of quality we forms of sustaining this work is that this "lack of traditional in recognize architecture. The hypothesis fit" can be attributed to the insufficient good of industrial systems for adapting to and capacities the satisfying variety demanded by consumers. We will thus intend to gain a better understanding of the match between and people production systems involved in the production of housing. 1 1 The study is composed of four parts and a conclusion: -I VARIETY WHY: The for first chapter exposes arguments which support the need variety in housing based on the different requirements people at an aggregate (segmenting the mass-market) and at an individual level (diversity of individual's needs). of -II WHAT VARIETY? The second chapter, after a brief presentation of the ways generating architectural variety, analyses traditional of modes production compared to industrial ones, based of on combination of standard elements in order to understand implication in terms of product conception, quality, their the and variety. -III VARIETY HOW? the third chapter tools and methods are presented which may allow us to better understand the kind of variety people want and the production logic used to accomodate it. In -IV The STRATEGIES IN COMPONENT PRODUCTION fourth definition chapter encompasses some considerations on of components and an analysis of the the strategies used for their production today. -CONCLUSION In the conclusion, announcing new possibles methods and tools in the are variety introduced produced by industrial systems. IL_2 I VARIETY WHY? 1 Human needs and wants 1.1 Definitions 1.2 Difficulty in the definition of needs and wants 1.3 Needs in housing 2 Difference of needs 2.1 Demographic and life-style changes challenge the mass-market concept 2.2 Diversity of consumers' characteristics - Cultural characteristics - Social - Personal - Psychological characteristics characteristics characteristics 1Z5 I VARIETY WHY? 1 HUMAN NEEDS AND WANTS 1.1 DEFINITIONS Beyond food, needs Mankind air, water and people have a strong this, shelter desire for to survive. recreation, other services. A useful distinction can be between needs, wants, and intentions, although these drawn words are used interchangeably in common speech: is a state of felt deprivation in some generic -A need education and satisfaction arising out of the human condition. People actually need very little. Needs are not created by Society; they exist in the very nature of the human biology and condition. People require food, clothing, belonging, esteem, and a few other things for survival. -Wants are desires for specific satisfiers of these ultimate needs. A person needs food and wants a hamburger, needs clothing and wants designers' outfits, needs esteem and buys a Jaguar. While peole's needs are few, their wants are many. wants are always shaped and reshaped by social forces and institutions such as family, peers, corporations. are decisions to acquire specific satisfiers -Intentions Human under given terms and conditions. Many people want a Jaguar, only a few will actually buy it at today's price. 1.2 DIFFICULTY IN THE DEFINITION OF NEEDS AND WANTS Kotler's distinction between needs and wants, although satisfying by its clarity, is difficult to establish in practice (31). When tackling those notions, one encounters a difficulty in differentiating expressions of the human real as such from culturally induced requirements. In the case of housing this results in an ambiguous classification. Thus the satisfaction of a cultural requirement for green space, is defined by some as an answer to a physiological nature need for oxygen. I1 1.3 NEEDS IN HOUSING specific variables (level etc...), the number monoxyde, an very for thresholds case certain it is possible for specialists to define Although of carbon of variables is such in of housing that it is not possible to isolate them adequat manner. Some norms of tolerance can however to avoid established Within solutions. the in be or reduce the harmfulness of certain for those norms one can search confort but those are linked to the age, sex, social role, state, profesional experience , past life of people. Optimas are therefore too difficult to establish and nothing proves optimas, that different optimas can be compatible as to combine in a global optimum. 1.4 BEYOND BASIC NEEDS symbolical dimension. be reduced as to be a solution to elementary both a practical and a Space has Space cannot needs; while it is loaded with significations that man "produces" living in an environment. Consequently, a research on space in general, and housing in particular, has to include two approaches: -one, based psychological on laboratory experiments, studying and physiological reactions to variations in the characteristics of space. -another, based on observation and experimentation in testing the interaction between life-style conditions, real and space. An evaluation of the influence of the existing built-form on demand is also of importance in understanding what guides and biases choices. Having presented the notions of needs and wants, we will now which either at an state certain factors and facts, aggregate or diversity in individual housing. level support the necessity of 2 DIFFERENCE OF NEEDS 2.1 AND DEMOGRAPHIC CHANGES LIFE-STYLE THE CHALLENGE MASS-MARKET CONCEPT past years, the typical American family consisted of In the a The working father, a homemaker mother and two children. revealed census 1980 of only 7% that the 82 millions households, then surveyed, fit that description: the -of families that reported children of 17, 54% of the mother worked full or part-time. -smaller households now predominate, as more than 50% of all households comprise 1 or 2 persons and singles constitute a fast growing segment. -20% of households include persons of 65 or older. The above chart, from the U.S Census data service, shows the population household to more be spread evenly in 1990 than in 1970; no types accross one several arrangement be typical. will THE CHANGING MARKET OLDER CONSUMERS... ... LIVING IN SMALLER HOUSEHOLDS U.S.POPULATION BYAGE PERCNT OFTOTAL PERSONS PERHOUSEHOLD PERCENT OFTOTAL 1970 CENSUS TOTAL POPULATION: 203 MILLION TOTAL HOUSEHOLDS: 63.3 MILLION UNDER 25 25-44 1 2 23.7% 35.9% 20.6% 65ANDOVER 226.5 MILLION 45-44 4 AND OVER 1980 CENSUS 82.4 MILLION 245.3 MILLION 1988 PROJECTION 31.1 DATA US CENSUS O0IWREY MARKETING PROitE iFORMAION SERVIEES AMERKAN Young adults their pattern two-thirds no born of 1z 95.2 MILLION . 1.6 DATA U S CENSUS SERVICE DATA RESOURCES INC5U S ECUOMC during the baby boom will low cohort fertility. 3 By continue 1990, of the projected number of households will children living home or no children at all. in almost have Stong trends are forecasted in delayed mariages, smaller family sizes, and independant living arrangements. Most people will have a variety of experiences in their life-time as they will more mobile in their type of household and way of life. be As a result of those demographic and life-style changes, the mass-market emerge, groups is clearly questioned. each, needs with special Many and consumer interests, a wide range of different kinds of for demanding housing, and public or private services. This fragmentation of goods the concept market expected is likely to increase in the near future, as by market analyst Laurel Cutler who foresees every market breaking "into smaller and smaller units, with unique products aiming at def ined segments". A further analysis of the diversity of requirements has be carried out order to their cultural, at the level of individual understand consumers. their motivations, we have social, personal, to and to In study psychological characteristics. 2.2 THE DIVERSITY OF CONSUMERS' CHARACTERISTICS V-1t * C Subcultur Ft Ii LlfestyI. Aelhbe Ro eisand Social elans FIGURE 6-3 Buyer Characteristics Influencing Consumer Buying Behavior - CULTURAL CHARACTERISTICS As human essential behaviour determinant perceptions, is largely of a learned, person's culture wants. is a Values, preferences and behaviours will be acquired in 1-7 process of socialization involving the family and others be house will the institutions. MrX's conception of a influenced by the fact he was raised in a modern society and thus expects certain levels of confort he has been used to. - Subcultures providing more specific identification their members, can be isolated; they will be based on: groups, Smaller to (ethnic differences). -nationality -religion (specific taboos or rituals). -races (distinct way of life). -geographical location (different life-styles). MrX's may attach a special meaning to certain types of houses that allow their cultural identification. - Social class Social stratification of a society, based occupation, on education, and so on, distinguish classes certain homogeneity in values, interests and wealth, income, a presenting Social behaviours. MrX, preferences. various show classes a from coming product-form upper-middle-class and succesful in his job, is likely to strongly refuse the products of the mobile-home industry. back-ground - SOCIAL CHARACTERISTICS These factors concern those people in the consumer's life that can influence his behaviour: -Reference groups Those have goups opinions, and an values. impact on They can be a person's further attitudes, distinguished into: -primary group, such as family, friends, neighbours, fellow workers. -secondary groups, such as associations, professional and other groups. -aspirational groups, such as sport heroes and movie stars. 1E3 Reference expose groups the influence have various kinds of impact. First person to various life-styles, they then his self-concept and choices because of a they desire to "fit-in" and conform the group. Not all product choice is affected by those influences: depending on the nature of the product, its ostensible character, depending on the person the cohesive forces in the group they belong to, and they will be more effective in inducing behaviour. - PERSONAL CHARACTERISTICS The consumer's circumstances, influencial -Age age, life-cycle, life-style and economic occupation, are personality also in his choices. and life cycle Goods people buy change over their life-time. The concept of family and cycle can help us identify what the wants life values of people will be as they get older. Seven possible stages are proposed: -the bachelor stage. -newly married couple, young with no children. -full nest 1, young married couple, no children under six. -full nest 2, young married couple, no children over six. -full nest 3, older married couple with dependant children. -empty nest, older married couple with no children home. -solitary survivors, older single people. Each age-cycle group has certain specific requirements interests. This classification, concerning profiles traditional family, is certainly useful, but, as before, does not apply anymore to most of the it population. can be Another distinction, more recently and of mentioned American developed, based upon psychological life stages. -Ocdupation Certain needs induced bey and wants for goods and a person's profession; services in the case of can be housing L ? there can be strong connection between specific professional groups and like in vernacular rural for instance, where house may incorporate work architecture housing models are activities, separation from an increased resulting Today spaces. models; specific of rarely linked to particular professions. -Economic circumstances decisions. factor is of great importance in people's This be adjusted according to the will Choices (level, income and time pattern), savings and assets, borrowing stability, power and attitude towards spending versus saving of people. In a require be to rematched design) price, (in goods sensitive income economic climate, changing the to solvability of potential buyers. -Life-style People with identical subculture and social class can choose to different life-styles. rather have selects person A products in accordance with his or her life-style. Marketers use the consumer's product choice as a key often indicator to develop a "consumer profile" and then design new products consistant with this profile. -Personality The of personality his an individual includes character traits, habit and mode of thinking. Each individual exhibits level different / extroversion of introversion, impulsiveness / deliberateness, creativity, conventionality, activeness, been with implemented (cars, beers), success in certain have traits Segmentation by personality etc. product areas by defining product image appealing, through identification, to certain consumer groups. Another related characteristic decision is that of is the image of influence in product people's self concept. The self-concept an individual has or think people have of himself. People will choose a product in accordance to these images. The idea is however risky as people may choose according to either their actual or ideal self-concept. - PSYCHOLOGICAL CHARACTERISTICS Psychological processes of motivation, perception, learning, beliefs and attitudes operate on the process of choice. In of motivation, the needs can be ranked in theory Maslow's decreasing order of importance as follows: -PHYSICAL -physiological: basic survival needs (hunger, thurst). -safety: self-protection and defense. -SOCIAL -belongingness and love: acceptance by a group. -esteem and status: recognition by agroup. -SELF -self actualization: development of a value-system. The basic principle of Freud's theory of motivation is that people are not behaviour. are conscious of the motives inducing Consequently, when choosing products, assumed to have unconscious psychological as their consumers well as conscious functional motives. The unconscious buying motives of people can be studied by using projective techniques and motivational research. We can now cultural, evaluate how complex the social, personal, psychological must be, and between factors influencing consumers' deduce necessity of a variety of solutions to the choice interaction consequently satisfy consumer's needs and wants. '2 I II WHAT VARIETY? THE QUESTION OF QUALITY A WAYS OF PRODUCING VARIETY 1 Aleatory 2 Variation on a theme 3 Combinatory A WAYS OF PRODUCING VARIETY Mechanisms to produce variety in architectural production are: -Variation: modification of a detail on a type. arrangement, -Combination: and operation of selection elements within finite sets and configurations. -Aleatory: random selection of elements in a set. After a interest theme and relevant brief and discussion aleatory their processes, limitations, we will focus on variation on combinatorial to on us for processes the of purpose diversity, of a more architectural applications. 1 ALEATORY The to for as interest of aleatory mechanisms rely in their capacity generate new possibles and thus enlarge our potential variety while not being decipherable or predictable the other two mechanisms; however, they still have to be governed thing as by intentions and goals, as there cannot be such a a random house. Indeed, total random variety generation based upon all the parameters we can select from, when of designing a house, would rapidly lead to such a number alternatives that they could not be checked by a even assisted by a computer. Les Courtilleres. E.Aillaud human To this pitfall, some have intended to avoid who, in the Courtilleres, let the masons E.Aillaud The will. consequence theoretically, of such is process a arrange their the facade panels according to in windows a randomness in their compositions; like partial or localized the introduce own that, on all the windows are located differently; that point of view, the objective variety is very important. But of be perceived, it would require the existence to Certain structure. "controlled" upon based aleatory, can however be helpful in generating We variety. methods, searching a here mention the use will of Zwicky boxes, generating "morphologies" by selection of variables given to parameters various (24); such of but the application a method, can be fruitful only when the number of variables is limited. Descrirtive parameters: dl: Variatiuns: Cl 1 dl,2 d2: d2,1 d2,2 d3: d3,1 d3,2 d4: d4,1 dl,3 d1,4 d3.3 63,4 kl = 4 kA = 4 h4 Z:5 Lumber of morpholo-ies = hl x k2 x h3 = 2 x k4 aleatory, like combinatory, is only relying on Furthermore, the = 3 k2 values a variable can take. Even if it multiplies those values the effectively, system remains nevertheless unaltered: no new variable can appear. 2 VARIATION ON A THEME Variation on theme is the basic a production of furniture. Traditionally, craftsman construction, interpretation certain vernacular artefacts: of principle ruling architecture, the tools, architectural diversity, in was produced by variation in the a cultural model of reference whether a type of housing or a certain style of molding. This type of diversity is the one of nature: the diversity of all beings within a same specie is established by variation on no detail, cell, "whereby method and patterns no is the same between two faces but the type has produced a nature designs which are as it John Harkness describes respected. always is global: theme. This variation is identical always an variety wide constantly the of modifying themselves to be more adaptable to changing conditions; its working can be seen, for instance in the ... and order of native costumes all over the world strict whole, as the of dictate and formula". products Doors the monotony of uniforms which were always to opposed variety in Amsterdam: although no detail is repeated, the globally perceived, belongs to the same family. 3 COMBINATION processes Combinatorial are used in industrial many based upon the assembly of standard parts; they are the base in construction of open and closed systems. The various configurations by getting process consists of productions different combination identical assemblies of similar objects. Gropius thought of as a- way to generate diversity elements (25). Encouraged starting by from Gropius, combinatorial modern in processes have been effectively architects, either in facade volume applied (assemblies of panels), (complex pilings of identical cells) or site plan level by at the (combinations of housing types). ;/N) Moshe Safdie, Habitat 67 "there is no limit Le Corbusier, Pessac on diversity in the world. By combinatories on a few primitive elements, unbounded variety can be created;... a familiar example is the proteins, their multitudinous twenty different elements an upon is amino arising from arrangements acids. Similarly the of only ninety-odd provide all the kinds of buiding blocks needed for infinite variety of molecules" says H.Simon (47); Based a limited number of elements, initially given, variety obtained develops the variety by the combination of those elements, from whole. Consequently, in the case of potential for variety will depend on the which housing, number of building blocks and their flexibility of connection. The use of combinatorial processes is an interesting solution to willingly diversify. But, if the set of initial elements is the too limited or their assembly rule too mechanism predictable, of variety will be rigid, decipherable and which can affect our perception of the variety of the objects thus produced. B PRODUCTION MODES AND VARIETY Introduction: the rules of the game 1 Traditional production 1.1 The whole before the parts 1.2 Type of variety: diversity in unity 1.3 Unity an appropriate goal 2 Production by combination of standard elements 2.1 The whole from the parts 2.3 Type of variety: the marginal difference 3 From "diversity in unity" to "difference in uniformity" B PRODUCTION MODES AND VARIETY INTRODUCTION: THE RULES OF THE GAME The of variety production presented before are different systems of architectural conception and mechanisms tied to production. Before industrial specific discussing strategies as applied to housing manufacturing (chapter IV), we will study the mode of conception of industrial products generated by combination of standard components, as compared to traditionally produced ones, based on the organization of non in standard pieces. This understanding will be structured modes parts: after a presentation of these two two of composition, we will point out some consequences in terms of potential quality of their output and more specifically in terms of kind and level of variety generated. analyzing the mode of production of traditionally made When or jobbed objects as opposed to modern objects made out their standard pieces, we can notice a major difference in mode composition. This difference can by summarized of traditionally made objects, to "the whole from the parts" by "the whole before the parts", production principle opposing of of ruling the conception of objects made of the selected standard components. 1 TRADITIONAL PRODUCTION 1.1 THE WHOLE BEFORE THE PARTS We often refer to products made according methods as examples of good-fit: is that wagon, achieved to traditional "the surprising thing to us the beautifully organized complexity of the the rowing boat, the violin, and the axe, should farm be without help of trained designers and also without managers, salesman, production engineers and the many others upon Christopher Jones production, with underlines interesting some shaped the to "each part of the wagon is reason but by many, one by not he wagon, farm factors contributing designs: adequacy of traditional the of example the crafstman studying Further (29). says depends" industry modern whom specialists is there and a delicate adjustment throughout the whole to get the best out "which objects Alexander qualifies the each bit". of display understood the can as be which behaviour within (3). The coherence of craftsman material, and function of the considered as resulting from the production of organization holistic systems it is "the traditional way with complexity is to operate, at any one dealing be only can a product of interaction among parts parts in such a of of of "systems as a whole" objects" shape, kind certain time only upon a single conception of the whole" (29). 1.2 TYPE OF VARIETY: DIVERSITY IN UNITY SOISSONS LAON REIMS ROUEN French Gothic Cathedrals Analyzing it appears repetitive past, the mode of production of artef acts of the that their "trial and unity of form results error" process "searching a from for the invisible lines of a good design" and reaching the adequate :24? fit of the product is (29). that noticeable In terms of variety generated, it within the strong unity their ruling production, traditionally made objects allow for an infinite unity", number of variations. They achieve "diversity -in the principle advocated by Gropius as "fabric of democracy", the ultimate societal goal: expressing the individual's richness within a common framework (25). the Thus conventional measures vernacular in used are the result of a consensus and functions as a support modifiable, adaptable according to the context. As is done among a limited range of possibles and as selection architecture the singularity of the facade remains a secondary the carpenter, formal possessing solutions, a repertory concentrates his skills spaces, assemblying, fitting or detailing The building process is of concern, technical on and organizing the pieces. occuring on the construction site, it can adjust itself to the diversity of demand and to local locally material impredictabilities. Based on the use of and not meant to be diffused on a produced base, the dimensional precision of the large market constructive elements is not a strong requirement: semi-products allowing for on site adjustements are employed. 1.3 UNITY, AN APPROPRIATE GOAL? If richness we often glamorize vernacular products and the of details and subtle differences they offer, it is probably that we have not been able till now to define models of such an that adequacy serve could as the for reference contemporaneous production of "diversity within unity"; Harkness hold the greatest promise that the architect of the .... regimentation future without order monotony without harmony achieve may "to models believes the definition of such John objective" as long as there is a common (25). i t .'~ ~ ~ M it L;IV The agreement by induced conditions, already on a form, in traditionnal construction, practices, by a mastered cultural system. considering when economical by to make use tendency and by the conformity validity the know-how imposed All factors which have to the geographical and of of is be by the remembered tranfers from craftsmanship experiences to industrial systems. Today, to we may be in the process of trial and error new rejecting reference their models imposition, for housing we cannot find leading production a or, sufficient social consensus to ensure their coherent definition. Z31 2 PRODUCTION BY COMBINATION OF STANDARD ELEMENTS 2.1 THE WHOLE FROM THE PARTS When conceiving a product out of a standard range of components, the coherence achieved at the level of the whole is weakened before by the the nature of the process. To part", principle succeeds the standard components. parts we "whole can constraints choose on combinatorial the of "the traditional from the parts", by production, aggregation Obviously, the larger the from, the lesser conception systems, and of whole of number of consequences or the whole. specially open ones, But encounter there a pradoxical situation. Open systems are built upon conflicting goals: they seek to enlarge the range of possible application of each individual components while products. of performing at the level of Chris Abel expresses perfectly the these goals "It is one of the principle aggregated contradiction of manufacture that if a product is to be designed for maximum efficiency, then its the constituant parts must be integrated together manner performance that most closely approximates specification of the whole" (1). the desired He also quotes Jean Prouve on the nature of industrial products are seldom built with parts selected form various they in "Machines sources, are aggregately designed" (43). The research of a wide interchangeability of the parts is opposed to the technical optimization of possible end products. 2.2 DISCRETE DIMENSIONING AND THE PROCESS OF DESIGN As changes in the economics of housing production lead to the manufacturing of standard construction elements that can be used in various buildings, heuristical measures, based on dimensions, as a and appoximate choice in a continuous range of possible are progressively replaced by nominal measures, determined number of fixed dimensions is admitted before conception. are used dimensions agreed-upon those support as a reference during not exclude singularity: does construction, can be modified and adapted by the craftsman according they to measures conventional to building practices and material employed, adapted which uses architecture vernacular When normative: of dimensions the parts, standardized context. In construction from the catalogue dimensions are components escape the decision realm of the designer to determined by manufacturers or norm makers. the component catalogue the thus imply for will be Using design a the introduction of a discrete dimensioning system. The of standardization in discontinuity signify uniformity of do if they of output or suppression not not creative they certainly have strong implications: the possibilities, lesser the process of design; on inconsequential are implies it dimensions resulting the and parts dimensions the sizes, in component offered more will be constrained to go from the parts to conception is obvious in light frame wood the construction, whole. This where, in order to minimize labor cost and maximize the use of houses material, are often built on a grid 4' which corresponds to the size of plywood sheets, plaster boards... 2.3 TYPE OF VARIETY THE MARGINAL DIFFERENCE The demand consistency technological industrial production differences (45). (and specially in mass-production) in qualified by Riesman as inessential, Thus, the seriality marginal object industrial of the the satisfied the object is of to submitted personalization, for is compensated by an abundance of choice in colors, accessories or To details. personalize a car, a manufacturer uses serially produced frames and motors, modifies features, adds certain same; accessories, indeed, distinction it that is is but the object in nature remains rather the illusion provided, as of those differences are themselves serially produced. a the personal "specific" Galbraith thinks of uniformity of a performance, we remedy to industrial toaster: the the products simplicity by the "it is a toaster and use of the with and illustrates this idea features compensatory example that standard of pop-up-kind except that it etches on the surface of the toast, in darker carbon, one of the selection of attractive for or messages standard monogram design. For the appropriate message from the Reverend Billy Graham; for there would be an aphorism the urging patriotic or vigilance from the late J.Edgar Hoover; for modern painters and worried, an arms; would be available or a coat of the devout at breakfast, there would be an devotional elegant, economists, there would be a purely abstract design. restaurant marginal version would personalization promote consumption. sell is used advertising" as a value (21). added A The to 3 FROM "DIVERSITY IN UNITY" TO "DIFFERENCE IN UNIFORMITY" The transformation differences and combinatorial variations has been "diversity in by Baudrillard, who opposes the marginal analyzed unity" into series of models into series, of produced traditionally of in uniformity" of "differences objects industrially the to produced ones When traditional or jobbed objects are introduced as "holistic property", models in industrial production, their and coherence between shape, material resulting from a (69). function, is weakened and often lost by the use of fac-simile materials, by the optional, by their reduction to aspects. This is examplified in the revival stereotypical of vernacular and historical styles offered to housing "The buyers as possible "toppings" of the same models elevations including French Brittany offers choice of colonial, colonial, Tudor and provincial" (60). ~14. THE WINSLOW THE PACESETTER THE BELMONT exterior treatments and Individuality is achieved by configurations of the same generic box. Restricted by to production constraints, the variety of industrial objects is based on a finite number of combinations of fixed elements and a redundancy changing whereas with the of secondary features fashion, to compensate and that accessories, limitation, variation on a theme used by the hand-made or crafstman product is infinite. anymore to the hazards of individual demand and implementation, the variety of industrial objects becomes systematized in the production process. It is difficult to evaluate quantitatively the level of variety generated by Not left crafstman verses industrial production, but we are here more with the notion of qualitative difference in concerned "failure" of housing systems (and in particular those of produced variety industrialized the by those two systems. The mass-production) might be nested in their inability to offer a kind of variety more fundamental to the customer than the marginal difference difficulty previously described and in to achieve the "good-fit" out of an assembly the of standard parts. The issue personalized the buyer, thus rised is whether it is possible to produce objects offering a more meaningful variety while still respecting the constraints to of industrial systems. But how can manufacturers know about the "meaningfulness" can those of certain varieties to the buyer? And how they check the technical and economical feasability varieties from a production viewpoint? Such are of the questions we address in the next chapters. 34e III VARIETY HOW? TOOLS IN CONTROL MANAGEMENT AND MARKETING A UNDERSTANDING THE DEMAND 1 Introduction 2 Definitions 2.1 Utility 2.2 Product attributes 2.3 Attribute salience 2.4 Attribute determinance 3 Methods for evaluating consumer's value system 3.1 Observation and experimentation - Observation - Experimentation 3.2 Direct questioning - Dual questioning - Perceptual mapping 3.3 Indirect questioning - Covariate analysis Expectancy value model Determinant attribute model - Conjoint analysis Trade-off analysis Concept evaluation Z3~7 A UNDERSTANDING THE DEMAND 1 INTRODUCTION In our free enterprise economic system, consumer wants of quantity are a basic determinant of the nature and desires services produced. When developing and goods and new a product a company must consider two basic problems. First it know its market; second, it must understand the nature must of the product. Both problems are hard to solve, especially when the product has several qualities each of which appeals to with consumers evaluate different how But and how can we know wants? those interests. do we the of which product features are the most important to the consumer? In order to understand consumer behavior, we will analyze the nature of those wants as well as the process used by the consumer to evaluate their satisfaction. There many judgemental processes, depending on are people and situations, and no simple algorythm could emcompass them all; but recent psychology mathematical have marketing, process. researches For led carried or psychometrics, and to various models of on in applied to the evaluation any product, brand, pattern, style, or other two to the public, there are at least offering individual on behavior, "levels" of evaluation by consumers: -Overall attitude toward the item, in term of suitability. toward -Attitudes each of the item's component features, which presumably combine to produce an overall attitude. This chapter what are the is primarily concerned with the latter important features of an item and how type: they combine to affect both our overall evaluation and our actual purchasing decision? Most of those models presented view the consumer as judging largely in a conscious and rational manner, and are qualified of cognitively oriented models. 2.2 PRODUCT ATTRIBUTES: In set of attributes relevant a to respect the alternatives with single dimension; indeed, we position them one along the characteristics of consider not to product the P.Kotler mentions some typical attributes we use class. of products, we (31). When evaluating and choosing attributes" do wording, we perceive products as "bundles marketing in current product categories evaluation: -Cameras: picture sharpness, speed, close-up distance, size, ruggedness, price. departure time, speed, aircraft, preflight and travel: -Air onflight service, price. By in the case of housing we can assume some extension reference those attributes functionality, price ... Those are lists to be: of design, comfort, to name but a few. by no means exhaustive and person each reference framework will probably differ as to the relevance of particular attribute. Attributes are used to a the to according market their on influence segment different consumers; this influence is reflected in their salience and their importance (determinance). 2.3 ATTRIBUTE SALIENCE when mind are those that come to attributes Salient asked to important product decision are attributes him, or what are his ideal levels of attributes. attributes product what consumer's the mentioned But are it cannot be concluded necessarily determinant the most various that the in the process. The consumer may have been influenced by commercials biasing his choice or may by unwilling or unable to state their his paper Measurement" decision base (see direct questioning). Meaning and illustrate how "Determinant buying attitudes: (38), and Alpert Myers In misleading can direct questioning be with the example of car attributes. DEFINITIONS 2 Before some of those models it seems useful presenting to define certain terms and concepts they refer to. 2.1 UTILITY understand how a given consumer shares his income To various commodities, commodity, on the assumption of a of rational choice. When purchasing an amount of a of process model economists have designed a based behavior consumer among certain the consumer behavior is determined by at least three parameters: - preference - income - cost of the commodity (and opportunity cost). is assumed that preference can be expressed by a certain It utility factor. and total It important to is marginal utility. W.Baumol distinguish (7) and between E.Mansfield (34) define these concepts as follows: total utility of a quantity to a consumer (measured in -The willing to give or exchange for it -A is utility she is level of is the maximum amount of money he or terms) money a satisfaction that market basket (34). number (7). that the represents the consumer derives from a particular -The marginal utility of a commodity to a consumer (in money is the maximum amount of money he or she is terms) to pay for one more unit of it -The (7). marginal utility measures the additional derived from an additional unit of a commodity In modern rationally economics willing theory, the consumer is satisfaction (34). supposed allocate his income as to maximize his to utility: "The rational consumer will choose a market basket where the utility of the last purchased is the same" dollar (34). spent on all commodities "In proprietary studies asking consumers to evaluate automobile attributes appearance and first in such as power, comfort, safety, consumers often rank safety as the importance. However, these same consumers do not to safety; therefore, safety is not a determinant or feature time, in the actual purchase decision. At the all perceived be economy various makes of cars as differing widely with see such respect attitude any various brands may have the same given level possession of an attribute, and thus it will of not as important for the present as some attribute for which differences are the basis for current brand preferences." We that therefore be more concerned with the should attributes are really determinant in the decision process and by their relative importance weight to the consumer. 2.4 ATTRIBUTE DETERMINANCE In the wide spectrum of features of a product there are some that really purchase decision. attributes. possibles induce of consumer's preference Those features are called and eventual determinant We can assume that products with high levels as each positive determinant attributes will be prefered by the consumer. 1I 3 METHODS FOR EVALUATING CONSUMERS' VALUE SYSTEM Since no manufacturer convenient product can afford to for an infinitely sell an low infinitely price it is essential to understand the consumer valuing process and his trade-off between various attribute level combinations. to Myers and Alpert According (38) there are three types of approaches to understand consumer behavior: and experimentation -1.Observation (including unobstrusive measures). -2 Direct questioning. questioning, -3.Indirect and including covariate analysis conjoint analysis. 3.1 OBSERVATION AND EXPERIMENTATION - OBSERVATION and Description the for techniques identify consumers' preferences is to attempting limitation: One of of that direct observation of consumers in purchasing situations. If it can be easily applied in recording consumers' behavior in a in supermarket it seems much more difficult to implement the study of housing. - EXPERIMENTATION Description: in the role of one or more specific features of isolate product an attempt of the observational method. It makes an extension to The experimental approach may be viewed as by holding all others constant, varying the question, and then measuring the impact a factor upon some performance criterion such as buying choice. Application of and limitation: This method has the indicating causality by isolating factors that behavior. advantage motivate Like the observation method it does not rely respondents' answers. However when many factors must on be observed, it turns out to be very costly if not impossible. 3.2 DIRECT QUESTIONING In what approaches the respondent is asked directly those factors considers important in his evaluation he and for reasons he prefers one product or brand to another. He what may also be asked to rate his "ideal brand" for a given category in term of several product attributes, product so that an ideal product profile may be constructed. These methods have the appeal of seeming to get directly to the issue of "why do you buy?". However, they rest questionable assumptions, namely: that the very knows that he buys or prefers one product to why he often consumers not understand their own do something, purchasing to unwilling and even what admit respondent another, and are. But reasons for reasons willing to tell what these is when they may make them upon two do, look they foolish are or irrational. - DUAL QUESTIONING Description: concerning This each product attribute two which might be they important in a purchasing decision, and then they Consumers are first asked what questions factor determinant. consider approach involves asking are asked how they perceive these factors as differing among the various products or brands. Their preference is supposed to be function of the importance weights they assign to each times attribute product. Some may be not attribute per items may rank high in rated importance but products and their thought preceived level to differ much of among conversely. -EXPECTANCY-VALUE MODEL To illustrate, suppose Mr X considers only three attributes are important in buying a house: style and functionality and quality of construction. Furthermore, he feels functionality and style are twice important as style. The following level based chart presents estimates of preference on his grading of 5 houses. House 1 2 3 4 5 Importance Mr his Style 20 40 20 10 10 .40 Function 20 20 20 20 20 .40 Quality 50 20 10 10 10 .20 Pref I 26 26 18 14 16 X would consider houses 1 or 2 as the most attractive. that 1 and 2 have the same grading by compensation Note of their attributes (based on P.Kotler exemple on cars). -DETERMINANT ATTRIBUTE MODEL stated Attributes important by the do consumers function when they actually choose products always products (see attribute salience). various competitors generally that fact among attributes, Interesting match on not because may not be perceived as substancially differing they the as is important neglecting less important attributes that might indeed be determinant. The model factors but deviation) level is based also among on not only on the their importance variablity (using products; they combine in a of each standard determinance which is equal to the importance times the variablity of a attribute. House Pref.II 1 2 3 4 5 Importance Variability Determinance Using either Style 20 40 20 10 10 .40 12.25 4.9 importance 50 20 10 10 10 .20 17.32 3.46 Quality 26 26 16 14 16 weights, we would predict Mr X to house 1 or 2; prefer house 1. 20 20 20 20 20 '.40 0.00 0.00 Function using derterminance, we think he Pref.I 263.5 230.5 132.6 83.6 118.2 choose will importance weigthed using model, expectancy-value The by the consumer, does not separate the preference estimated among different products as the determinant attribute model does: functionality, and has no influence on the attribute determinant non choice. attribute model eliminates this factor determinant The though estimated important, is a to sort out really influencial ones. "IDEAL" ATTRIBUTES: PERCEPTUAL MAPPING Description: A direct questioning approach consist of asking to respondent the the describe "ideal" brand or company in the product An studied. being product ideal the of characteristics or service category the represents ideal combination of attributes for the consumer. By also asking for ratings on existing products in term of the characteristics initially mentioned by the consumer, one where "gaps" exist find out to hopes consumer's between product image and optimal product image. choose consumers If goals. their is major assumption of this technique A Assumption: goods according to their that and self-image the consumer's goal in buying a car will and sportiness of the model, then the consumer luxury is about characteristics such as design, handiness, speed care level, etc..This goal may be sustained by a consumer's self-image such as being a dynamic and sophisticated person. Application and limitation: Based upon data from large consumer sample, this technique can be applied to determine clusters of preference used to segment the market and support the definition of targeted products. Unfortunately, traditional has an this approach shares the problems of questioning, as it assumes that the consumer to image of the ideal product he wants and is and able to define it explicitly. willing Example: P.Green and Y.Wind present a perceptual mapping of consumers' evaluation of the relative similarity of 11 cars and two consumers preference orderings (23). Perceptual mapping of respondents' judgments of the relative similarity of 11 cars and two respondents preference orderings Sporty .7 01 4 8 IS 02 04 09 Luxurious .3 e11 05 010 Stimuli 1968 car models I Ideal point for Respondent J Ideal point for Respondent J I 1 2 3 4 5 6 7 S S 10 11 Ford Mustang e Mercury Cougar V8 Lincoln Continentai VS Ford Thunderbird VS Ford Falcon 6 Chrysler Imperial VS Jaguar Sedan AMC Javelin VS Plymouth Barracuda VS Buick Le Sabre VS Chevrolet Corvair An example of perceptual mapping. The closer a point is to a customer's ideal point the attractive above while it will be considered. Thus according perceptual map respondent I prefers Ford likes better Chevrolet-Corvair. to more the Thunderbird C 3.3 INDIRECT QUESTIONING interviewing Any falls the motivations of their choice for consumers the ask approach that does not directly into that category. - COVARIATE ANALYSIS This Description: An between relationships to used then (regression is asked to rate a develop to consumer's component attributes and for solve coefficients) product the on weights" "importance wich assigned to each maximize the correlation would analysis, regression respondent The and motivations aspects and on an overall base. Multiple regression several is behavior. use to is behavior. of consumer's understanding approach method provide a more systematic way attribute between overall value and a linear combination of the attributes ratings. and Application limitation: that It is always possible a factor might be totally unacceptable to the respondents, and its very low rating might cause the rejection of that products otherwise acceptable. This points namely, it acceptance out a major limitation of covariate does not indicate the absolute analysis; level of of the various product characteristics, and thus cannot be relied upon to give the complete story. Therefore, correlation analysis applies mainly throughout the "sensitive range" of a product feature desirability. Covariate models have in common the relating of product or service component ratings with some criterion, be it product purchase, brand preference, or some overall evaluation of possible, the product or service. Many types of models are all suffering from the weakness of any covariate model: relationship they establish does not indicate causality. the - CONJOINT ANALYSIS These recently developed in the study of models, and preference, are principles and computation tools then covariate they on precision share causality, some same largely based on the perception consequently, people's of their challengeable analysis; (no draw-backs of assumption independence of the variables). Like covariate analysis they assume that, although consumers in a reliable manner their express cannot process, selection products, among choice it varied. systematically can be infered by their studying which the characteristics of However, and evaluation are in differ they strongly their method of data gathering. relative values of things considered jointly which be unmeasurable if taken one at a time; whence their measure might can covariate analysis, those models assume that we Unless name "conjoint". 1-TRADE-OFF ANALYSIS (pairwise) Description: two attributes and attribute, showing Consumers are presented with matrices at a time, with different asked to rank the trade-offs cell's combination in order of preference. A method (Kendall's tau or phi) of each between each level computational converts this rank order into estimated utilities. Assumptions model studied attributes or assumes the of independence in other terms that the extent the to a respondent prefers wood-siding will be unrelated to which the The model style or size. It may well be that wood-siding is prefered to brick for a Ranch style house but not for a Tudor style one. It also assumes that the degree of "liking" for a together levels. certain combination can be computed consumer's utilities for the by relevant multiplying attribute A two-at-a-time evaluation procedure for cars (23). factor 22 18 Miles per gallon Miles per gallon Miles per gallon Price of car 3000 For each of the six questions below. piease write in the numbers from 1 to 9 to show your order of preference for your next new car. Maximum apeed 80 mph 14 22 18 Length 14 14 18 22 12 feet $3200 70 mnph 14 feet $3400 60 mph 16 feet Miles per gallon 14 18 Roominess 22 Madein Miles per gallon 14 18 22 Madein 6 passenger Germany Germany 5 passenger U.S. U.S- 4 passenger Japan Japan Price of car I$a.O $3.200$3.400 A respondent's utilities in "condominium design and pricing" (20) tility Attribute: Level 28th 20th 12th .315 .311 .271 Price: 4th .103 Attribute: Level Floor: .769 .231 River View No View tau = = Unit: Utility $52,000 $59,000 $66,000 .738 .217 .035 $74,000 .010 Plan B Plan C .471 .403 Plan D Plan E .125 .001 . 986 2-CONCEPT EVALUATION (Global) Description: asked are with to In the concept evaluation technique, consumers to rank product concepts varying simultaneously respect to all attributes. The data are then utility function reconstruct the implicit analyzed for the separate attributes. P.Green Example: and Y.Wind describe how the concept method works in a glamourous case: the design of Five attributes, (23). spot remover for carpet evaluation a new expected to influence consumer behavior, are studied: package design, brand name, price, Good Housekeeping seal of endorsement and a money back guarantee. Three package prices are under three designs, three brand names, (three level factors) as well as the presence or not of the two last factors (two level factors). The cost testing 3*3*3*2*2=108 alternatives is and difficulty of consideration avoided by selecting a few test combinations, using an experimental design method (orthogonal array) which balances the contribution of the five factors. Orthogonal array Package Brand design -name Experimental design for evaluation of a carpet cleaner Package designs B Good Money-back Respondent'Housekeeping guarantee? evaluation (rank number) seal? $1.19 No 1 A K2R No 13 2 A Glory 1.39 No Yes 11 3 A Bissell 1.59 Yes No 17 4 8 K2R 1.39 Yes Yes 2 5 B Glory 1.59 No No 14 Bissell 1.19 No No 3 7 C K2R 1.59 No Yes 12 8 C Glory 1.19 Yes No 7 Bissell 1.39 No No 9 10 A K2R 1.59 Yes No 18 6 9 A Price B C 11 A Glory 1.19 No Yes 8 12 A Bissell 1.39 No No 15 13 B K2R 1.19 No No 4 14 B Glory 1.39 Yes No 6 15 B Bissell 1.59 No Yes 5 16 C K2R 1.39 No No 10 17 C Glory 1.59 No No 16 18 C Bissell 1.19 Yes Yes l' .Highest ranked Example of concept evaluation by conjoint measurement above exhibit presents an orthogonal array involving 18 the 108 initial combinations. The respondents are asked The of to 18 purchase) rank in order of preference (or likelihood of cards, on which figure a design package (A, B, or C) and regarding the four other factors. Simple ranked 108 of 18 out only to be obtained and needs precisions data alternatives can be evaluated. Computation of the utility scale of each attribute, representing their determinance in consumer's evaluation, is a realized by computer programs. From the ranked data of the computer extracts a set of scale values for respondent, each attribute used in the design process. As so in the previous approach, those scale values are chosen that they add together in a total utility which matches the original ranking. 1.0 Utility 1.01 Utility Utility 00 0 a 0 Package design Bissell Brand name Package design Money-back guarantee? Glory K2R c b 1.0 Utility 1.0 Utility Brand name Retail price Good Housekeeping seal Money-back guarantee 0 Percent Relative Importance of factors 10 20 0 $1.19 Retail Price 30 0 $1.39 $1.59 Yes No Good Housekeeping seal? above exhibit presents the utility of each factors. For 18, prefered combination of the first exhibit, number The the the package design has a utility of U(A)=0.6, the brand name a a U($1.19)=1.0, the seal a U(K2R)=0.5, the price U(G.H.S)=0.3, and the guarantee a U(M.B.G)=0.7; which sums in a total utility of 3.1. We could get the highest possible utility by using package B instead of C and keeping the same combination of other factors. We have can factor of importance each of by comparing their utility range (see lower portion importance depends But exhibit). the this relative on the level allowed for each factor during design: its relative price had ranged from $1 to $2, largely if an idea of the relative the importance would have certainly increased. -Application and limitation of conjoint analysis methods more realistic than Concept evaluation techniques are trade-off among global attributes. many product However attributes, choices as they involve respondents in analysis concepts rather than when they are more difficult to apply varying at the same time, of pairs have to considered, while the pairwise approach can easily provide be pairs of number The attributes. trade-offs among attributes this latter approach can handle is only of limited by constraints of test length and respondent's resistance; it is than eight is their in general restricted to no more attributes. An of conjoint measurement procedures advantage capacity generate accurate data from to of Another not attributes but rankings. qualities stems from the wide their application: simple can only also they range quantified evaluate sensory (color, texture, of shape) and (beauty, satisfaction). subjectively perceived ones But the greatest benefit of those models is that they do not require the actual testing of all the attributes, varied alternative concepts; testing would models can on two levels each, 1024 traditional be impossible, whereas conjoint measurement their exploration generate Ten in predict their alternatives. validity based on a limited consumer testing. However, we models: not must be cautious in the application of such some product may involve utility functions that are graspable by a conjoint measurement approach. The challengeable assumption of independence of the factors used by simple additive models, can be suppressed by using complex become they not interactive ones (polynomial); but those more models rapidly cumbersome due to the number of computations require. Moreover, the nature of certain products make allowance for their reduction into may alternative features. While these limitations are not negligible, conjoint measurement still provides an interesting tool to understand consumers' trade-offs among product alternatives, especially when applied to sensitive attribute ranges. -Determining product characteristics Estimated can be design new ones for or products Once public. selected product (demographic, complementary data and utilities current modify to applied utilities consumption, media exposure informations on each respondent) consumers, been gathered for an appropriate sample of have feasible assumed versions of a product, possible several both in price and manufacturing, can be tested. By computing individual's overall liking, it is possible to determine how a product concept stands relative to competitors' offerings and what its market share and target are. this of direct questioning, not detailed in methods Other study, are Motivation research (53) and Inference of "ideal" attributes (14). CONCLUSION -VALIDITY OF MODELS be to the design of the test. This requires the selection paid of models to have some validity, attention must those For composition. length The of both, in terms of the test is a also their and answers may be affected by Consumer boredom. researches are often and size critical hour a 4 consumers may be unwilling to participate point: test sample representative a and tiredness on based 45-60 minutes interviews on sample of a 100 motivated respondents. But certain consumers are not willing to spend their time on tests for any monetary or other reward. trade-offs Careful terms tested. stated number of The and evaluative must be worked out by the reseacher and appropriateness assumptions the of the underlying the test attributes listed must in attributes have refer to to dimensions used by consumers. Moreover the of scaling should reflect the kind of attribute being be the type measures perceptual tested: not should applied cues and psychological scaling should not physical with mixed be for subjective measures (like quality). of Each limitations. some has chapter In particular any of the methods which are not in a situation involving actual choice and purchase of used a methods presented in this the says, must rely upon what the respondent product which might be different from what he actually does or thinks in a real Therefore an investigator, situation. interested in identifying the attributes which are determinant in choosing products, should always ask for the absolute level of among attribute acceptance for the product evaluated and check the ratings of be different competing products. It can noted the dual questioning method is a possible short-cut to that regression analysis, as it directly asks the respondent what are important and how they are thought to differ attributes among various products. When more methods are available for research, certain can be profitably combined in the same study. It is particularly measure resources interesting to perceptual use mapping to consumers' perceptions of certain commodities while conjoint applying trade-offs. measurement to precise consumers' This type of combination can emphasize various aspects of product decision based on the same input data. However, an investigator does not know whether a given level of importance or difference is of major consequence without some set of external standards. Results from direct direct and indirect questioning should be subjected to experimental validation causal for a greater assurance about the existence relationships between the attributes identified determinant and actual choices, decisions or actions. of as B VARIETY AND PRODUCTION STRATEGIES 1 The question of objectives 2 Production strategies 2.1 Production engineering classification 2.2 Woodward classification 3 Variety and related concepts 3.1 What is variety? 3.2 Standards 3.3 Standardization 3.4 Variety reduction 4 Measurement of variety 4.1 Percentage measure of standardization 4.2 Lorentz curve 4.3 Variation in the product range 4.4 Number of production stages 4.5 Standardization of the components 4.6 Difficulty of measuring variety 5 The cost of variety 5.1 Consequences for the manufacturer 5.2 Economical aspects - Batch size - Stock holding - The question of over-provision 5.3 Developmental aspects - Flexibility - Ability to incorporate change 5.4 The "optimal level of variety" 6 Mixed strategies 6.1 Evolution of production systems 6.2 Standardization and individual demands: contradiction? 6.3 Combining standardization and unit production B VARIETY AND PRODUCTION STRATEGIES INTRODUCTION Various production buildings and understand strategies their those can component be used parts. We different conceptions of to produce here try production to and their consequences, particularly at the level of end product variety. Within a firm, strategical decisions aiming at the improvement goals of and the production system will depend objectives management's "view of of the the organization, business". Before on the on the presenting various manufacturing strategies, the question of objectives of the firm will be briefly treated. I THE QUESTION OF OBJECTIVES The objectives complex and of individuals or companies are numerous, conflicting. For instance, the case of a firm manufacturing components, the objectives of the production manager be per item, difficult labor which will might conditions, negatively be to reduce the production cost achieved through more a lower quality and variety level, consequences viewed by workers, sellers, and customers. The various external objectives of a firm, amongst which we can mention profits, from a sale revenue or rate of growth, are often classical motivation which increase in market share, short and long of economy point of view "profit maximization". in Another the term reduced global definition, more broadly encompasses the diversity of motivations of modern firms in today's markets is "to create and deliver value satisfactions at a profit". Assuming external objectives have objectives allowing been defined and accepted, to meet them have to be internal established. and can cover various aspects of productions planning They scheduling, target costs of tooling and handling, etc..Those between internal and external criterias are relationships usually based upon financial tools quantifying objectives in current assets, liabilities, of: terms stocks sales, liquidity, and profit. Those internal objectives can be further decomposed into departemental targets and so forth. Decisions depend the As and strategies the various internal and external objectives on of firm and will thus result in a wide range of solutions. an example, diversity a approaches of design to architectural, marketing) can be observed (engineering, the of production systems terms in systems various proposed to meet same the in housing program, like in Operation Breakthrough. Building components - Automation Future- Future changes in production processes. and in the costs. capabilities and applicability of automation Future changes in materials. components and markets Present Building components Automation Productiot strategies' Conpoiients and their markets" lield space processes and field space "there will not be a "one to one" but a M.A.Malet thinks: "many to many" relationship between a particular component or class (similarly, particular components of there and its method is a many to many of manufacture between relationship requirement of a component and its design)". He illustrates this "diversity of response" by a model relating the technical variables describing components in their market environment and in their production process (33). 2 PRODUCTION STRATEGIES 2.1 PRODUCTION ENGINEERING CLASSIFICATION Industrial organizations exhibit a wide range of production strategies. from From a production engineering viewpoint, one of a kind intermitently produced items going towards quantity manufacturing of more standardized and rationalized products, three types of production systems can be distinguished : jobbing, batch, and mass-production. I-Jobbing or unit production. It consists products, of designed requirements. subdivided complex) less the Firms manufacturing to meet in of "one-of-a-kind" customer's this category may individual be further according to the level of technicality (simple / and the size of the products (requiring more production stages). Jobbing is the traditional or method of producing building components. 2-Batch production. Today, it is manufactured through estimated through small that 75 industrial % of methods the products are batches, and indeed, most of the processed components used in construction originate in this production method. 3-Mass production. Those techniques can refer according to Malet tot -quantity production, through large labor input, to satisfy mass demand. -flow production, through processing -flow production through (chemicals, refinery). assembly line or discrete item machining. Firms involved in batch and mass categories will produce standardized items; they can be differentiated whether their production is interupted and continuous or more or less frequently according to their level of flexibility in accomodating the production of diverse items. Another differentiation can be drawn between firms making "integral" products (or manufacturing "dimensional" products, industries) and those evaluated in weight, making capacity or volume (process industry). 2.2 WOODWARD CLASSIFICATION In the mid various 50's, firms understand the in Joan Woodward undertook South Essex batch and between the felt of in order to relationship between technical systems (54)(55). production engineers division into mass-production was too and broad to jobbing, distinquish the various manufacturing methods. She thus ordered firm's further study (England), structures of industrial organizations Woodward the production systems into eleven categories, aggregated into three overlapping groups -unit and small batch, mass and large batch, process production- and a class combining those groups. Here follows her classification: -UNIT AND SMALL BATCH PRODUCTION -Production of units to customer's requirements -Production of prototypes -Fabrication of large equipements in stages -Production of small batches to customers' order -MASS AND LARGE BATCH PRODUCTION -Production of large batches -Production of large batches ,on assembly lines -Mass production -PROCESS PRODUCTION -Intermittent production of chemicals in multiprocess plant -Continuous flow production of liquids, gazes and crystalline substances -COMBINED SYSTEMS -Production of standardized components in large batches subsequently assembled diversely production of crystalline substances -Process subsequently for sale by standardized production methods prepared UNIT AND 1LARGE BATCH1LARGE BATCHILARGE BATCH; PROCESS :SMALL BATCH WITH UNIT| AND MASS IWITH PROCESS1 As an illustration of this classification in the field building, of we can associate: -a special concrete casting to unit production. -a serie of pretensioned beams to batch production. -a standard concrete block to mass production. -a regular concrete mix to process production. 2.3 APPROPRIATENESS OF EACH SYSTEM Each system of production is best suited to achieve certain objectives. Continuous flow processes, initially employed in chemical plants, are increasingly used in the manufacturing of "solid production, shapes" the like steel, mill-board, paper. oldest form of manufacture, more Unit relevant for products satisfying individual requirements, when market aggregation is not feasible or desirable or for rapidly evolving fields which make standardization impossible. 3 VARIETY AND RELATED CONCEPTS Brewer, a production engineer, developed a 1962, In scale relating firms classified, according to Woodward's system of categories, and their rate of production. Firms in the batch to proved class of and scale the were closer to continuous flow or unit production sometimes each other. Moreover, to than firms large part a cover similar with firms production hardware showed important variation in their rate of technical production. Woodward's way of identifying the of firms seemed unsatisfactory to precise if variables observed differences firms between the by caused were technologies, control systems, strategies or all of them. In to further understand those order and Combey team, Rackham, insisted on research Woodward's the necessity aspects They thus defined various methods to measure (55). of variables problem of measurement of technical the solving members of organizations, industrial between differences related to technologies and production strategies, but found no comprehensive measure on which comparative studies could be based. their underlying Instead, they came up with a concept measuresa production. the concept of variety in the system research While the idea of variety emerged the carried on by Woodward concern of Easterfield and her team, it was the In order to define a (18). of first "policy for finding optimum variety", he also stressed the necessity of techniques to measure the degree of variety produced by a firm. Before measurement, from presenting some of those of methods it is important to precise the idea of variety a production viewpoint as well as related concepts of variety reduction and standardization. 3.1 WHAT IS VARIETY? Although many we could, in products manufacturing simple terms, say that a firm making generates a lot of variety, while one or two generates little variety, we one need 2L to refine this concept in order to distinguish among all the general: industry in -A produce will components, the in involved firm, manufacture of spaceship number of different a large performance in order to optimize the technical components, minimizing the weight penalty of the pieces. while circuits various manufacturer can produce electronic -An the can cover. As examples of variety taken from it cases requiring much the same processes, machines and components. manufacture of a -In by extended and dimensional changes, by line a within produced be clothing, variety will qualitative changes in the fabric, color and pattern used. -A producer can sell powder washing in identical goods nature except for the label and the packaging. -A railroad-track producer a will offer railway unique model. All varieties those of unlimited variety is theoretically production it the If are difficult to appreciate. possible, is obviously not the most effective strategy in terms of In the search for economy of cost. try This production, a firm will to simplify the number of varieties of a given product. of process the concentrating achieved by production around certain components or products designed to be used with other ways. is reduction variety elements in various implies a clear definition of those This components and products through standards. 3.2 STANDARDS Movshin by Defined methods relationships, "Agreed-upon performance, quality, composition, testing" as of manufacturing, of description dimensional or procedures (37), standards are used used for identification, As "specifications information and production purposes. having recurring use", standards serve a function of: -Communication, by defining their subject of application. -Evaluation, by precising the conditions to be fulfilled by 46*:2 criterias of assesment. the subject they refer to and their 3.3 STANDARDIZATION in our case, will be defined as a Standardization, that selecting of consists objects of properties process or components and assigning values to them. "The properties can be uni-dimensional in terms of say, length, or thickness, or section, the or color or can be multi-dimensional by virtue of (33). It model material, sets three involves specified" of -structural and level operational or performance variables aspects- the whence "standardization space", used by Ciribini ranking, term of item, is (13). 3.4 VARIETY REDUCTION The reduction the number of varieties of an of achieved by selecting to corresponding simplification for allowing a standards: and sections significant range of contributes This applications. to reduce the cost per item by the selected lumber mill instead of cutting up a gigantic longer runs of production for sections will limit its product range to a of variety certain of properties for the product lengthes, each serving a range of few purposes (Ex: joists with sections allowing certain maximum loads and spans). As a result, standardization is often assimilated to the process of variety reduction. standardization and variety reduction The consequences of are complex; as mentioned by Easterfield both were "equally advocated as something that would save the British industry, and, equally attacked as something that would ruin it" The problem for a firm is then to establish (18). the preferencial balance or "optimum level of variety" it should produce. We will attempt to identify the elements in a firm, that made. will be affected by changes in the variety of products These factors will have to be taken into account when defining the firm's objectives in terms of kind and level of variety it should aim at. 415 Z 4 MEASUREMENT OF VARIETY between differences purpose of undertsanding the the For industrial organizations and their production strategies, it is desirable to have some measure of the degree of a by generated of range In view of the firm. variety type of such a measure might be difficult to establish. production, presents various attempts of measuring variety This chapter from a production viewpoint. 4.1 PERCENTAGE MEASURE OF STANDARDIZATION Smith-Gavine a proposes in based tool measuring the following premises: -A firm making one product should be consisdered as a 100% standardized. -The a products more the makes, firm its lower standardization measure should be. -A the production of which is concentrated in firm a few products should be graded higher. -The more common components enter a range of products in the same proportion, the more the measure should increase. Ecf / { cY The formula he suggests uses the cost data usually available from the firm. In the simple case where the firm produces items with no common components, if the total cost of making the nth product is Cn, the standardization measure will be: For a detailed application we description of this refer to the studies of mentioned in the bibliography formula and its S.A.N.Smith-Gavine (48)(49). 4.2 LORENTZ CURVE Easterfield suggests another way of evaluating the variety produced a (18). by Products firm are based on the use of a plotted in Lorentz decreasing curve order of contribution to the total cost of sales of the firm, a graph is then drawn with (percentage of total number of products) for accounted by the product) as ordinate. As a result of rigth, is curve, wholly concave to the a ordering, this production (percentage of contribution to and abscissa as The further this curve departs from the diagonal (100,100), the more the production is concentrated in produced. (0,0) a participation also is It products. few interesting than products to total profit rather of the plot to to total production. Percentage contribution to sales and profits Sales Prof Its '7T Product item line's total sales. Product item contributions to a product Both contribution to production or profit measures can give us insight on products of little participation to the firm's output. However, there are cases where these measures do not effective: as an example, be to prove in differences large with firms exhibit their total number of products may very similar curves. The tools "percentage method- by presented are -Smith-Gavine of standardization" and Lorentz measure not Easterfield satisfactory fully in evaluating curve the technical variables of firms. Although they can give us some insight on the differences among production systems, they do not take into account variations. Particularly, in time little distinction parts. they in in those fail to incorporate the variation of product factor components many factors of importance the nature of range products and and Two searchers, Combey and Rackham, tackled some of those aspects. the make their have 4.3 VARIATION IN THE PRODUCT RANGE On the initial base of Woodward scaling, they suggested the idea firm's of an important factor underlying the variation that a the extent to which was characteristics firm's product range varied over time. In scope, while unit production can be this to nature, show fabrication items, of greatest process changes production in Batch size production, between years. by and design will offer range of products with little change over a limited of the expected, a number extremes, those vary depending on the production strategy of the firm. will Other things being equal, a firm making more changes in its will probably specifications product manufacture smaller batches. A measure of those variations can thus offer a tool differentiate between firms of the batch category and to to understand their production strategy. Here follows method a description of the measuring process: adopted was "The the number of in 1963 and 1964. The number of to obtain figures for different products made different products common to the two years expressed as proportion taken a of the combined total of different products, was as an indicator of the degree of similarity in the product range from year to year. The complement was taken as the indicator of the degree of variation." We here better present a summary of the result of this study to understand the procedure and its interest. Two firms of the batch category were analyzed and compared. Madingley, an production system, output different by Assurance about electronic equipment firm, enabling had it to constantly assemblies of various a complex change its components. continuous markets was rare, owing to continued development in the field of electronics. the Table I. Variation in product range in Madingley Product Division Different products Different products made in both 1963 made in 1963 andl and 1964 or 1964 A B a result, 200 reaching year. 1-A/B A B o.66 o.68 56 0.34 0.32 0.24 7 18 34 78 0.21 0.23 0.79 0.77 8 5 38 0.13 o.87 All 92 343 0.27 0.73 1 2 40 6 118 19 3 16 5 7 Table I. As A - 0.76 Variation in product range in Pizzicato Ltd. Brass Reed 86 24 128 33 o.67 0-73 0.33 0.27 Both 110 161 o.68 0.32 in batches were rather small units, rarely size, and often repeated, up to 6 the production were the same in year 63 would be equal to 0. If the production were If times and a 64, entirely that variation was maximum, 1-A/B would be showed to 1. Thus, Madingley, with a result of 0.7 equal in product range; while another firm, a great variation Pizzicato Ltd., producing musical instruments, had a smaller little changes in reflecting 0.3, index of variation so different, production. two firms, belonging, according to Woodward scaling, the batch production category, had both a number of These to shops feeder together in producing sub-assembly Madingley, Pizzicato had production methods in components, that and assembly shops. not modified a century. its This then were But put unlike products difference, and of was largely imputable to the nature of the products order these two firms: Madingley manufacturing special course, of items small a rapidly developing field, and Pizzicato making "unchanging" products for a market too batches of in limited to justify low-cost manufacturing methods. &>~7 Combey measuring the variation in the product range, After Rackhamn and by firm, to sustain first the surprisingly encountered problems organizational to the firms. Not relation logical its studied the a variety high had major imperatives of coordination between sales, of production, as well as planning and control and level, design provisioning process. to optimize its product brief overview gives us an idea of the use of This batch the of specific their in problems. However, there are limitations organizational is of this tool, as no distinction applicablity the firms and in gaining insight on type production differentiating in variation range was while the second firm's essential problem manufacture, done between the kind of variety produced (marginal/essential). 4.4 NUMBER OF PRODUCTION STAGES complexity of products being made, which can roughly be The estimated and transformations factor consequences Beyond production systems and their outputs. comparing have of assembly the manufacturing process is also a salient during in the number by on stock and inventories, this complexity will repercussions on the production structure of the firm and the variety it can produce. The bigger the basic element or aggregate to be processed, the lesser variety can be incorporated at amount similar of given level of the final product: the material with levels different a of processing and assembly, the number of houses of a different type that can be generated will dramatically decrease as the level of aggregation increases (studs, panels, boxes). Another factor relevant to the study of production stategies is the level of standardization of the components. 4.5 STANDARDIZATION OF THE COMPONENTS Standardization is not only a matter of variation in product range over time but also of interchangeability of components between products. Combey and Rackham intended to measure to was to actual number of components application the what recording After was used on what product, their method component compare interchangeablity. of degree this a number of application, defined as the number of theoretical ratio of actual to theoretical application was taken as a measure of the times products "The number of components: used interchangeability. If all components were components on more than one product, it would give a figure approaching 0, the larger the figure would be nearer to 0, the and number of both products and components" (55). In framework, this interchangeability be another simplistic; too products varied out of further that notion manufacture our initial categories. Some firms complicates highly between products, when it should not introduce must we indeed, of high have to in unit production. But this is case the level expected be can production batch large and mass-production components mass-produced range of time. Unlike a lot of firms in the unit or diversely assembled variation over and can also offer a high small batch production categories, they exhibit a high level of component products interchangeability, their different being based on the combinations of a limited set of standard was the case for the firm This components. of electronic equipment studied before. 4.6 DIFFICULTY OF MEASURING VARIETY researchers, Other suggested (19), like Perrow (42) and Emery that the nature of the have processed material being is an important source of variety in the production systems: "Techniques the art materials of is are performed upon raw materials. The state analysing likely the to determine what kind the of characteristics of fo raw technology will be used...The other relevant characteristics of the raw material, besides the understandability of its nature, are its stability and variability; that is whether the material can be treated in a standardized fashion or whether adjustment to it is necessary" said Perrow. Their continual studies, however, and were not primarily systems man-machine aspects of interested in on socio-technical focused measuring or understanding the variety of production systems or of Firms, present their output as such. particularly the batch production complex technical, structural too to differences Woodward's in be classified classification understanding under a and single category, behavioral heading. is indeed too simple to give of their diversity for comparison an purposes. In fact, such an understanding has to be based on the study of many variables that may be independent of each other and cannot be grasped in a simple classification. The measuring techniques gaining of presented in this section can be useful in insight on some of the variables defining the level variety generated by firms and in comprehending their production strategies. ~7C 5 THE COST OF VARIETY 5.1 CONSEQUENCES FOR THE MANUFACTURER (18) and, later, J.Movshin (37) have Easterfield factors several encouraging mentioned from standardization a manufacturer standpoints capital of -Diminution inventory, finished material, requirements, invested raw in jigs, dies, machines, templates, floor space and repair parts. -Manufacturing gains, throughout reduced product development and set-up costs, specialized machines and larger production runs (or batch size). -Increased efficiency, labor through a learning process from the familiarity of employees with tasks resulting and products. -Reduction of stock-holding, depreciation and obsolescence. -Simplification in sorting and packing of products (larger orders, diminished risks of errors). -Simplification organizational aspects, improvement of of communication in production and distribution processes. But there are also draw-backs to variety reduction: -Loss of flexibility in the production process. difficulty in adopting technical or -Increased design changes. -Increased to inability diverse satisfy co isumer requirements. -Increased repetitivity -Cost In of boredom level or absenteism due to the of tasks. of over-provision. the analyzing following paragraphs, we will concentrate on the factors related to the "inner" environment of firm -namely its production system and organization- on it can act upon when deciding the level of variety it which the should produce (47). .7 I 5.2 ECONOMICAL ASPECTS can How from a expect a predict the changes in cost resulting we change in variety number of costs production? We can logically range to increase with a rise in the of items a firm produces, and this, independently of quantities organizational tooling, and costs to the firm. There is little information on inventory extent to which these overheads rise in relation to the the B.D.Tait of products made. It has been suggested by number these costs would rise more than proportionally to the that of item produced, in a relation to the 1.3 power number (18). hypothesis systems based of this support no evidence was offered to but number; the At a certain stage of complexity, computer mentioned later in classification sorting, of are production-scheduling - more brings development, set-up, causes and complexity item new Each manufactured. worthwile investing, as will and be this study. BATCH-SIZE The in imputed the to assuming variety, batch size. A reduction in in changes be produced by a firm can variety of degree change cost resulting from a important most minimal changes in total sales, leads to bigger batch sizes. If case the in of products with a this demand, steady reduction is beneficial, its interest is less obvious in the case the of these, products more impredictable in demand. For cost as well as average set-up of stock held will the opportunity of a bigger batch size. Increases determine in batch size lead to three major cost effects. -Spreading of overheads. -Economies in technical processes. -Experience effect. 1- Speading of overhead In the short dissociated independently run, into of fixed the output the cost of a certain cost, level of which can be remains constant and variable production, costs, which vary directly with the production level. When short run cost per unit curve we obtain a down a deriving level curve showing the cost per unit fall as the sloping of output increases (33). 70 60 - 50 - Ln 40- o 30 Fixed cost 20 10 0 1 2 3 4 Coltper item 6 7 5 Batch size 9 8 10 Unit cost against batch size In unit derivation of cost per the practice, previously will not be used for pricing purposes. Each batch described or order for a product incurs some specific set-up cost that must absorbed. Globally recorded as be fixed costs order to will be distributed to a certain reach an these "overhead",, overall equilibrium, pro-rata which does in not accuratly the real cost caused by a specific order. reflect Manufacturers will frequently subsidize certain batches with high overhead by charging more for their regular lines. Variety is thus rarely sold at its real cost. Indeed, it seems more fair to determine cost centers expected to increase proportionally to the number of batches and made derived to include in the price of an item an amount from this batch number divided by the total number of pieces produced. In certain cases, important costs result from these the variability in the distribution of batch size; can be reduced by applying queuing theory in order to seek the optimum number of items to be produced per batch. ~73 2- Economies in technical processes As batch size increases, specialized machines, with cost, become ranges more economical and new technological in economies in resulting accessed, be may higher technical Thus, what we can more realistically expect as a processes. cost per unit is a serie of overlapping curves, as confirmed in the case of a concrete block manufacturer (46). A real cxanrpre slows a series of overlapping curves , individually handmade handmade, simple jigs and tools processes 1 and 3 require additional equipment at this stage 2 machine-made semi-automatic automatic machine:1 shift .2 shift 2 3 shift 4 4-, 3It (parts per annum x 10000) production number of units Experience effect was way industries the fall by The doubled. work WWII during that the of number needed to build an aircraft was disminishing in a man-hours regular noticed first (car, 20%, same each time phenomenon requiring the production was observed complex assembly processes date to in other and team airplanes, cameras) with range of 5% to 20% of price (2) . in Dollars V Ford List Prices 6 - - 10.000 r rr 100,000 r r rrr T 1,000,000 10,000,000 r T Il~t .r~r 10) Inurs Cumulative Units Produced The Ford experience curve has relation between volume growth and cost reduction This been expressed in two related concepts: decline learning curve concept is that "product costs -The by systematically a common percentage each volume time doubles." experience curve concept traces "decline in the -The costs volume to of product line over extended period of a than strategical advantage this the learning curve. Both can expected competitors. After a certain a become planning tool for firms wishing to gain a over as time grows". It includes a wider range of costs decrease total time cost though, process slows down and the experience curve tails off to an asymptotical direction. The formula for the experience curve is =CCn - b CCq=n()b q = the experience (cumulative production) to date. n = the experience (cumulative. production) earlieti Cq= the cost of unit q (adjusted for inflation), Cn = the cost of unit n (adjusted for inflation), and b = a constant that depends on the learning rate: EXPERIENCE CURVE 100% b 0.000 95 .074 90 85 .452 .235 80 .322 75 .415 The experience curve results from a combination of: -Product standardization. -Scale effect, for capacity costs increase less rapidly than capacity. in -Substitution the product, cheaper materials or less expensive processes are incorporated in the product line. -Increase in labor efficiency, based on a learning process, experienced at the level of individuals and cumulating in a group effect. -Improvements and techniques. in the production system, in terms of process benefits resulting from the experience effect should be The into taken But sizes. batch production if batch optimal when calculating the experience an undergoes we do not really know how this process works in the effect, case account sequential of continuous to production as compared where it was initially discovered. We can assume production however, thatu -Each new batch does not start its experience process from scratch and benefits from previous experiences. -The batch rate of production reached at the end of an old is unlikely to be reached as the beginning of a new one. - STOCK HOLDING the mean and peak stocks in two ways. As previously affects -assuming mentioned T.E.Easterfield same of level production estimates is will number the "if that n, the production of any variety is varieties the the more variety, the smaller the batches maintainedbe; manufactured in the number of different products Variation of tend, will roughly, to be proportional to 1/n, the batch sizes, roughly to n-1/2, and the maximum and average stocks held roughly to rise the total safety stock held will Secondly, n1/2. the number of varieties" (18). with Some tend to slow-moving varieties, rarely asked for, can make the situation worse by substantial increases in the amount of stocks held creating and by rising the risks of obsolescence. - THE QUESTION OF OVER-PROVISION A standard unit cannot be optimally employed in each of the it situations over-dimensioned, When perform. difficulty variety in not cases be redundant for the task it is asked to defining a range of standard lies in "balancing the production, overprovision, certain used for.. It will in is when with cost the elements, savings wasted through cost the smaller unit in the scale is quite big enough for the duty, and the next unit up somewhat to big". the of just is certain based on the frequency of demand of ranges, those establish operation research can be applied to of Methods elements and the cost of material. 5.3 DEVELOPMENTAL ASPECTS - FLEXIBILITY variety minded Single costs, is most the not always to strategy. There are several factors favorable desirable variety, decrease and productivity increase to mean reduction, as a difficult a lot of which are, unfortunately, more to appreciate than mere costs. Flexibility is one of them. cost reduction strategy and a product innovation or improvement strategy. Constant improvements A cannot persue, at the same time, a firm brought to the production process through mechanization and integration or investment in plant the firm's capacity to affect equipment, and change its A and therefore its capacity to adapt the market. products firm, ideally manufacturing one product at a constant rate, could select benefit from and manner optimal machinery and production process its the experience an in process mentioned above. However, material, real situation, changes in a in price are technologies product, of to be volume expected, which the of prices demand and challenge the of validity of a punctual optimization. A firm perfectly suited to a certain context will be very affected by any variation from its optimum conditions, whereas a more flexible system will adapt and maintain a better average efficiency Techniques under (47). of linear programming applied to decision making uncertainty can allow to choose among various type of installations and corresponding levels of variety production. - ABILITY TO INCORPORATE CHANGE IN PRODUCT OR TECHNOLOGY The technological possibity to produce new items is closely linked to flexibility. As operations reach a higher level of the increase relationships those connections; stronger develop systemization product and process and elaboration company's inertia to change, as a modification would require high simultaneous transformation of many elements with the implications. cost steps further its and changes progressively innovation of nature the Thus, diminishes intensity as and are taken in the development of product process towards standardization and cost reduction. in tools development, and invested too much building its reluctance to incur the or modification technical (investments, this After launching). costs capital new a of stage of has not thus not firm while the first, occur innovations Major costs required by product development product a introduction product and transformation, innovation centers on refining the efficiency of the process by through rationalization; a further step can be reached, backward integration and transfer of process technology (the T development, based on a cost minimization Ford strategy, a perfect illustration of this gradual decline provides in innovation). innovation is reduced to the introduction of Progressively, new features rather than A lot of this kind of variety is introduced in the process. production by production little alteration of the requiring accessories new products, marginal changes and by modifications on existing products asked customers. Those modifications are, more than for often, and contradictory with technical progress but can be costly on justified other grounds of (satisfaction market requirements). 5.4 THE "OPTIMAL LEVEL OF VARIETY" - Steps to research the "optimal level of variety" T.E. Easterfield defines a method to establish the level of variety a analytical firm should produce. We here mention steps he suggests for this purpose at the the level environment of the firms of the inner firm's the of -Listing products, including preferably components, if those are used in several final products, in order to determine the level of standardization intermediate of the firm. -Analysis of sales records and of the relative importance of the various products in those sales. including drawing levels, of the costs of manufacturing at various -Analysis overheads outside the factory per so (in stores, office etc..); this may involve studies on the cost accounting system , statistical records and work measures of the firm and evidence of the existence of a learning process should be searched. of -Consideration technological implications in terms of progress of the firm. For a company manufacturing varied or complex products, such a study is justified by the improvements brought to its given a policy towards variety and insight of definition about its functioning. - Appropriateness of variety reduction Standardization or the variety reduction is researched by to answer some problem by finding a limited number of or physical organizational solutions, given available firm cases where in resources, economical neither a universal be nor a large number of individual solutions can solution designed and accomodated. is Standardization viewpoint, by and stockholding operations number of the profitable, simplifications specifications. an from it organizational sales, to brings same the Although could be handled by a computer for a very large is items at a minimal cost, once initial set-up guaranteed. But its major advantage stems from the reduction of identical in cost achieved by repetitive production pieces. These advantages, however, have to be weighted '7 c? against the lack of technical flexibility and adaptability it implies for the production system and other draw-backs at in terms of product: lower level of customer's satisfaction as compared to purpose-made products required by larger range of application. and over-provision 6 MIXED STRATEGIES 6.1 EVOLUTION OF PRODUCTION SYSTEMS In forms of batch and production, large and batch large from and process and continuous-flow to mass-production complex and "from unit and small batch to manufacture: mass production a by moving towards more advanced occur system technical changes in opinion Woodward's But she does not foresee the disappearance production"(54). of any of these systems nor the emergence of new ones. the occur towards more continuity technical changes That process production Woodward of the product. of expect the disappearance of any not did standardization and homogeneization imply irremediably not does in If the systems mentioned in her classification, she did foresee new technologies and organization systems that production not might offer new possibles in the evolution of firms, bluring the distinction between unit, batch and mass-production. 6.2 STANDARDIZATION AND INDIVIDUAL DEMANDS: A CONTRADICTION? rejected individual often theorists have Industrial production. In indiosyncraties administration manufacture intention contradictory with the logic as requirements 1943 Urwick said wide range of a of away from "to economic of allow individual drive to customers it the principles on which can most economically is suicidal, the kind of good or bankruptcy is with which the road to hell paved". If and rationalization , basics of standardization production standard methods, have made possible increases of living, it is also likely that those modern in our increases lead to greater demands for customerized goods. Firms quantities of special products to customer's making small will individual requirements importance rise in should then see their number and the near future. E31 6.3 COMBINING STANDARDIZATION AND UNIT PRODUCTION At point can we qualify a product of what rather special than standard? According to the definition used in the study on may have measured by the criteria of material or labor cost" A can generate firm different products out of (55). the same parts; but the variety thus produced has to be standardized further "a content that might amount to as much as 80% or 90% standard , Essex firms, a "special product" South analyzed. A lot of firms do not really change their products a such, but create "variety" by the introduction of marginal modifications. Perfect examples consumer goods "rejuvenate" packaging. products producer The discussed, a a soap by in manufacturer changing their the will names and Indeed, this might not be very different from "ranch-style" suggested these practices can be found industry: his mobile-home siding. of when covering question will his rebaptizing of it with a new marginal a standard unit textured wood variety, already not be commented at that stage, but it is that a meaningful variety can be generated out of set of standard components carefully designed rather than subsequently provided by a large quantity of accessories. The were methods thought of standardization, and to be inadapted to rationalization unit production that are increasingly included in this process. After re-thinking the manufacturing operations and analyzing the unit products into individual component parts that can be standardized, it is often possible to combine the best of two production methods: produce more economically while answering customers requirements. E32 IV STRATEGIES IN COMPONENT PRODUCTION 1 Closed systems 1.1 Definition 1.2 Closed systems and variety 2 From closed to open-systems 3 Open-systems 3.1 Definition 3.2 Open systems and variety 4 Resistance to the development of open-systems 4.1 Technical factors coordination - Dimensional - Normalization of joints 4.2 Factors inherent to the production strategies strategies - Market - Innovation strategy 5 Defining components: central problem of industrialization 5.1 Standardization: where and how should it applied? - Standardization the whole or the parts 5.2 Aggregate components - The concept of aggregation - Size of the building blocks - The cut-out of aggregates - Product definition - The example of automobiles E33 IV STRATEGIES IN COMPONENT PRODUCTION If in mass production methods have proven their efficiency the In difficult to achieve in many situations. is which products standardized continuous demand for a on depend they used, labor ouputed/machine and quantity of terms of housing a lot of efforts have been directed towards continuity in the market, establishement of more case the in the variety reduction a implying adjust to demanded production requirements. suitability overall M.A.Malets to according However, "the mass-production of against the strategy for case buildings and for all their component parts is considerable: and in terms of mismatch between components theoretically their industrialized of history batch of production identical open ones, pieces, the (33). on based thus have more appropriate solution to a as advocated production" building particularly systems, Componentized of requirements the other, practically in terms of on mass-production the the one hand and one markets been the satisfy diversity. 1 CLOSED SYSTEMS 1.1 DEFINITON limited is a construction kit of parts providing a number of possible assembly. The components of such systems are A close-system necessarily closed compatible open-systems with system, within in themselves, ones. The conception which the firm defines freely not but all of a the major parts of its components, does not bear any additionnal than other industrial productions. The economics constraint of the process have to be viable, which means its market has as to reach series generating a competitive to be such In the case of industrialized systems for housing this situation is difficult to achieve. Firms generally seek a State contract on public markets, to develop their system, pricing. hoping to reach a feasability threshold. 1.2 CLOSED SYSTEMS AND VARIETY Theoretically close systems can allow diversity within a project. Close-systems diversity is based on two factors: of different types for limited number -The variants: elements of a similar nature (dimensional variants for instance). -Combination of elements: different shapes various arrangements of similar elements. 0 realized by STOCK Closed kit of parts. W.Gropius 1925. In practice ,those theoretical possibilities of variety are rarely implemented by close-systems developers, as diversity is always considered as an extra cost. Those systems generally designed once for good for a specific targeted building type are not aiming at diversity. This restriction results in a lack of variety and a certain inability to satisfy customers' requirements. Overprovision can prevent rapidly contradictory with cost this problem, but is may be dimensions efficiency. Certain variations in available without additional cost within a certain range, joints are less likely to incur any change as they are determinant and propriatory to the system. 2 FROM CLOSED TO OPEN SYSTEMS Till can tendencies the feasability of all buidings. However, cover the resulting from observed in their development, be to developed open-system have not sufficiently now, evolution of closed-systems and particularly those concerned with required components closed secured, additional The house production. Once the individual for own producers system components their has production may have to been produce to optimize the use of their plant. on elements thus produced will be offered excess of production the market place beside their proprietary system. This imply the such a market and therefore the of existence or the adaptability of components compatibility their of production method to purpose-made orders. But the coordination development of requirement to the strategies and preliminary open-systems is limited by product definition of individual manufacturers and the shift open system is difficult to achieve. a closed to from As an example, Lustron Homes intended to market bathtubs issued from its closed system, but failed because of the specifity of those products. Internal coordination developed in closed systems often prohibits the sale of excess components on an open base as by specific coordination gains in efficiency obtained in closed systems design and and tools are contradictory normalization required by open-systems. of interface with or the joints 3 OPEN SYSTEMS 3.1 DEFINITION open-systems combine a large range of Ideally by many different manufacturers observing supplied of rules compatibility. a within components building component be can A building catalogue. Each certain can designer choose within function a products of compatible with the elements it must be performed by a family of different brands, connected to. The choice of a brand for a specific function is An independant of other selections. advantage large batches. implemented close the of open systems is their appropriateness much ones: potential sufficient Intensive industrialization more easily with open-systems as they assume a large range of can then be with applications, market of each components is augmented production runs can be reached for which and justify E3~7 The initial investment, spread on a methods. those is output, smaller per unit than for the complete sets of manufactured in of elements larger generally systems, closed smaller batches. 3.2 OPEN SYSTEMS AND VARIETY The from of open-systems to generate diversity ability the compatility of their results which components, is a their economic viability. For an open system condition for component manufacturer, the possibility of applying hisproducts to the largest number of different operations is essential. diversity Open-systems as will adopt the mechanisms they have to target a market much more of large and impredictable than closed ones; providing a wider choice and flexibility to the user, they while solutions, architectural varied can lead to more from benefiting the advantages of large scale production. Based on economical factors and on terms of quality potential adaptability undubitable towards , speed, improved working variety, in conditions, there is an tendency in the evolution of housing production open development and advantages brought systems is however of industrialization; slowed down presented in the following section. by several but this factors 4 RESISTANCE TO THE DEVELOPMENT OF OPEN-SYSTEMS elements order to be compatible, separatly manufactured In require two between of conventions types producers: on matter of dimensions and on joints. 4.1 TECHNICAL FACTORS - DIMENSIONAL COORDINATION coordination Dimensional been the subject studies, more than often focusing on the numerous This modules. of has orientation is clearly research the in rooted ideology of Modern Architecture. Beside the work done on the subject by many international and national congresses, studies of P.Schofield, by R.Wittkower's principles and of Le Corbusier, influenced with E.D.Ehrenkrantz, E.Neufert, the can be mentioned. Modulor, his Those have efforts already been concretized by some dimensional building norms, we could therefore expect this constraint of open-systems to be overcome. - NORMALIZATION OF JOINTS The second constraint, on joints coordination, is serious. much more technical importance of this problem is The such that, if solved, we could consider open industrialization to be a reality. Most of the components in todays buildings are serially produced by industrial methods: tubes, connectors, plumbing accessories, components site woodworks .... But those require in a lot of cases traditional still assembly. heaters, For industrialization its entails open implementation, effective the serial production of on joints either integrated to the components or as separate entities. The problem systems thus raised is of a technical orders open require a "method of making other people's range of standard complexity components of a compatibles with each other". prefabricated system of construction in its joints, which are its characteristic part. The lies The the time building construction on spent architectural not concern the nature of the does drawings of most where design, in is corroborated by regular practise fact elements but their interface. interchangeability of components, joints Thus, to allow the simplicity, to seem which perenniality, conditions and versatility of satisfy major requirements to have would with advanced technologies. The "universal" joint, conflict researched to accomplish compatibility between elements, has not found, and it is unlikely that be yet and simple a economical solution could fulfil a wide range of duties. From those technical problems arise some decisional ones: concertation -difficulty of coordinated joints ensuring the set to producers among their of compatibility up components. between -contradiction open-systems and manufacturers' strategies of innovation, marketing and production. 4.2 FACTORS INHERENT TO THE PRODUCTION STRATEGIES - MARKET STRATEGY We have covered the consequences of standardization from an internal viewpoint, and will be here more concerned with the way it affects the firm's relation vis-a-vis competition. As features standardization" If assume we impede of a competitive market and industry which progress rapide built-in Spillenkothen and Renner "there are by expressed competition towards and industrialization (50). that component producers in work system, it means that, subject to pure a inelasticity of demand, they have no choice in the price level of a given product, this but situation setting, have to sell at market price. A producer intends to retrieve some freedom which means tries to achieve a greater in in price elasticity in the demand of his products by lowering competition. For do systems open reason, this not an constitute interesting strategy to gain a competitive advantage. As the of individual producers depends on the success of their products, their compatibility and open systems easily. for Open-systems of proprietariness of to is not likely to transform result firm was that systems becomes harder in warrantying the standard, the does not sell any more a set of components the manufacturer quality his products resistance the joint the once competition: specificity be to has which but evaluated, globally that can be individually compared to competitors components offerings. A differenciated its quality, by competitors offers. proprietary system his closed system cost or technology from a design rather will manufacturer in terms of design change and can market "captive" for options, or construction. consists strategy of developing a "parasitic" purposefully components, designed to be keep Another of system with compatible systems. This tactic is often used in succesful his In doing so, he can fully control computers, where small companies specialize in "niches" under-exploited by manufacturers, while adopting their standards large of compatibilty. -INNOVATION STRATEGY Agreements components on compatibility and the can heavily technological changes constrain standardization of opportunity of the and components modification, as those cannot occur independently from a synchronized modification of related components in the industry. This inertia brought by the commitment to an initial range of standards would slow down innovation and adaptation to consumer demand. C91 5 DEFINING COMPONENTS s CENTRAL PROBLEM OF INDUSTRIALIZATION 5.1 STANDARDIZATION: WHERE AND HOW SHOULD IT BE APPLIED? - STANDARDIZE THE WHOLE OR THE PARTS? For certain items standardization reduction it and are material unquestioned, the advantages since implies is not resented as the of variety constraining the conception and ultimatly the diversity of end products. This the case with technical or structural components of is which are in general of minor importance unit, housing the in the level of variety perceived by the user. The consumer is not interested in a specific thickness of floor or beams or in the particular a such. those elements are not supports of appropriation and Indeed hence diameter of an electric wire do require customerization. not semi-products ducts, Nails, or like studs joists, though standardized, exist a sufficient variety to allow for unlimited combinations in do not seem to require further diversification. If and existing their the range of standards sub-components is satisfactory, aggregation in components of a higher level that has to be discussed. Where and components allowing at what level standardization of should design requirements? in be applied flexibility other the beneficially, to satisfy words "are we to building while still individual standardize the whole product or many of its parts?"(37). 5.2 AGGREGATE COMPONENTS - To THE CONCEPT OF AGGREGATION minimize the number of on site interventions, the generally performed by tasks various trade should be combined in the manufacturing process. Three concepts can help us define this procedure: -aggregation is the integration of many tasks into factory assembled primary made elements. ensemble of are -aggregates factory can which transported on site as finished parts components then be combined to form the whole building. -primary morphological elements, based upon functional and parts are objects the dissociation of which into concerns, is not advantageous or logical. WINDOWASSEMBL EXTERI9R DOOR10MIT 3TRCTURE/CLOMJRE FLOOR PONELS ROCPING/CElyN STE IN UNIT COMPLETE LIVING STODOR RAGE WAlL I BATHFDCTREST WOTCENEOUIPMEN 99RE VNIT COMOO/ HEATINGAIOR of Maximization increase bathroom of development where in often are panels the also and unit kitchen or prefabrication light-weight in level of aggregation can be observed the to tendency site. This not require addition on does each that necessary components element includes the largest number of and so researched is agregation manufactured with windows, doors and lighting fixtures. - SIZE OF THE BUILDING BLOCKS the Increasing and complexity can standardization of size aggregates, the be applied at the level of the entire house, thus limiting the number of building blocks composing a house to The units. suggested solution by one: this is the case production of Archigram with of factory-made fully cells independant city" their "plug-in been has as a to closed industrialization. A derived application of this solution can be found with the mobile home industry. But, if the success of mobile homes is unquestionable in terms of cost efficiency, the mass or large batch production of integral building or blocks important parts of is houses much more controversial as in elementary terms potential richness of the environment they can constitute. of Town-houses built by factory-line methods. At the other size extreme, the brick multiple combinations, requires to much element, allowing is not a realistic solution assembly on site and cannot as it integrate various technical functions like plumbing, heating, lighting etc.. To allow combinatorial possibilities between elements, those have to regard the taken be product. end other Among assembly imply into account as they also certain limits; those dimensional thresholds are dimensional with considerations size of the elements, transport and the defining should and of limited dimension be interchangeable to based on the different methods of handling components. - THE CUT-OUT OF AGGREGATES A traditional housing unit could be "cut out" a three specific assembly. modular dimensional parts A or aggregates research of This grid. each maximal according to would requiring aggregation lead to special by this technique would be of limited interest as: -joints cannot be located without any technical concern. -the bigger the aggregate, the lesser the possibilities of variety and adaptation of the end product. -the more specific the agregate, the shorter the production runs. C9_4 Indeed, the the composition of aggregates should rather aim definition of polyfunctional a as limited possible. number The of question at elements as is to then determine what primary elements they should provide: The search for identical and polyfunctional elements lead to very observed. costly and redundant solutions Indeed potentially an include if would strictly agregate should be conceived as a large number of components, to all of which do not require Thus, a wall can contain the following elements: structural part, phonic insulation, thermical insulation, waste pipe, hot and cold water pipe, electrical wires, switches, fixtures, doors, windows . Many variation plugs, can lighting be generated components by to be present in each final ensemble. the presence or not of water the above (of course the structural part will be present in each) but also by their location and size. - PRODUCT DEFINITION If we specify, characteristics manufacture space (in of sufficient define the essential of the components or aggregates a firm' can sub-components, a by a number of parameters, terms of type, size, presence or finish), possible not the resulting ensemble constitutes products. In this space, given knowledge of consumers' needs and wants, we areas of of individual suitability, which can a can be clustered according to their density. This provides a useful information areas of special to the firm in the definition of standardization. requirements satisfied by of In areas of customers low preferencial density, will or will the firm depending on its policy and not on the be the flexibility of the tools and products concerned. - THE EXAMPLE OF AUTOMOBILES The automobile example generated on industry can provide us an interesting the question. Within a single line, variety by the combination of different body is style, engine, accessories, and colors. Each of the "different" thus produced will be particularly satisfactory to certain people, although composed out of the same set of interchangeable components. This process, based on the automobiles of the elements to be combined, allows possibility of individual selection among them (44). standardization the 6WW 1 4 404j Pk k %-f * jo Special system requirements are covered to a certain extent by the and may be satisfied in other cases by combination made items. Custom body and accessories shops thus develop beside the automobile industry as complementary to standardized products. The integration of standards and with custom special components provides unique combinations. We will-not here discuss the validity of similar processes as applied to housing, but consider this strategy as a possible direction. CONCLUSION 1 New tools 2 Cybernetics 3 Universal machines for specialized markets cp~7 CONCLUSION: BEYOND STANDARDIZATION, OTHER POSSIBLES The diffusion of automation and cybernetics are signs of the emergence of a post industrial society. The mass-production process, it due to the important investments and heavily requires, in of flexibility Galbraith's views variation. product lacks pre-planning on the terms rigidity of of this type of industrialization and its implications in terms of seriality and standardization may be challenged by new production and organization systems. 1 NEW TOOLS Automatically regulated precision tool New production tools, able to automatically (52). integrate variety are rapidly developing. The range of application of these tools is variable: a machine can realize various tasks on the same product or one and more operations on very different products. Though at a higher cost, machines of greater accuracy and reduced setting time are now on the market. This is the case of robots, called "universal transfer device", now with mechanical arms and hands which perform a wide equiped range also of operations and thanks to memory systems can be reprogrammed and thus adapted to other tasks when necessary. Beyond punctual applications for specific tasks, the improvement, linked to of controlling continuously industry (NC) flexible which allow numerical information all " "integrated tools and Machine controlled production machine through operate tool machines automatic in terms derived from the dimensions of of the itself and this can be fed back to control the for different operations" changing (1). tapes are used to store the information, then sent Computer the an movements, which include automatic tool machine's to in " production process. variable s piece tools now devised numerically processes work robots, will result from new methods variable has real a At machine. their level hierarchical higher programs can be designed by a general computer. 6 Too design elue Soco fiture fliture desgn I ond - prino tolode p000Blu special Toolshop Special f l Numercal D Desi o Methods engineerng oflalys's Opeocton-0 sheet Control MOoSnitTope ntond opeaton Shet 8© B Je Port programming ~ T*pep*epa*ai**ool manuol) Tope Numerioy- Controlled mschie T Conventoanal machine Porf (pre numericol control mochined) Selection of parts for numerical control machining By their versatility and their capacity to perform operations on complex at components a various high speed, numerically controlled machines constitute a highly flexible Their potential can be better applied by organizing tool. "machining complexes" grouping various machines each used for operation ranges: certain transfer line combination and controlled by an on achieves, tranfer line"(33). "Connected by in effect, a line an automated computer,the flexible, automatic complexes of numerically controlled machines can Integrated thus output a wide range of different components while still production volumes comparable to mass-production. achieving can Machines task performed according to their of out of components per day varying in size and shape 20.000 The overall production scheduling (1). a six machine factory is sophistication. can output 2000 to instance, "system 24 complex", for The certain reach levels while balancing their time in use and the production kind selected and organized to be also handled by a computer deriving the best production flow from orders of components collected for a small period. Datum cost Centre lathe 100 * 90- X 80- Capstan E _ 70 Conventional turning cost Curve 60~ NIC turning cost Curve 50* 40- Multi-tool automatic 300 U0 201 1 -automatic 3 2 4 20 10 5 30 200 100 40 50 300 400 500 1000 Batch size Turning cost against batch size for various methods The advantages of NC machines are that the cost of and the arise economic batch size are reduced. Their from require. set-up The costs, possessing first rest the can however be simplified capacities, locked-up in Moreover, the widens with they (NC) machines allow potential savings product variety markets, systems to the production components in terms work in progress as well as enlarged in in operations, manually, are then commanded by tape the batch. Aside from the decrease accuracy, draw-backs costs where times and an increase in the quality of of tooling preparation of the control tape, included record/playback guided of additional capital and set-up (33) thus reducing in they the in capital inventories. can output effects of irregularities in demand. 10 0D In recent applications manufacturing, coded which features to the field of panelized house corners and intersections of components are allow a rapid "take-off" of for a list of from architectural drawings. This list is fed to a mini-computer which, the produces pieces, tape for the size NC machines, the if required, assembly and, quantities after checking details. of the bill of Numerical mini-computer is used in lumber-mills, where control by cutting saw lengths based a minimizes scrap in the cutting of random stock by on an optimal cutting pattern, estimated computer, between lengths required and lengths in stock. In the case of truss manufacturing, standard data are fed into the computer which a finished can be connected to an and take-off produces specification automatic assembly machine, self-adjusting for production. machine for corners, trimmers etc.. Assembly and sheathing machine for panels (Automation in Housing). new These tools do not suppress the use human for operators. Automation remains uneconomical for many assembly processes. This is the case in small and medium batch size production, where new approaches of "team assembly" opposing flow-line production repetitivity of task rely on small the teams of manual to on to ten workers entirely responsible for the assembly of complete products; these approaches tend change specific the role given to workers by qualities recognizing their and result in improved rate and quality of output. 101 2 CYBERNETICS The application of control theory to the whole factory been studied by the cybernetician Stafford Beer (5). has Beer views today's industrial organization as "dinosaurs", which, as analyzed by Galbraith in the "New industrial state"(21), to try adapt. Beer, But cybernetics where the controlled as the more optimistic than firm by will behave as an firm's production and era organism, adaptive regulating a board room or "nervous system" the not thinks Galbraith, can enable us to reach a post-industrial automatically (5). can the world's variety to which they reduce organization its He describes the structure of the "cybernetic factory" in a five level hierarchical system that he compares to human nervous system, while viewing company's divisions as the body's major organs: REW~ 3 2 x 11 M y -The first control devices, temperature, determined be taken stage consists of simple relays and used pressure to measure such position parameters or position, which, checked as against values, can cause possible corrective actions to (vertebral segments). 1 2 -The to second stage uses techniques like proportional control keep the process in a steady state, but manual interventions and supervision still require (spinal cord). -The third stage includes monitoring and coordination of the and functions is models cost-effectiveness and sympathetic including system nervous (autonomic on based parasympathetic trunks) -The conditions the determines stage fourth operating optimal for the process and uses models of marketing and finance. -The fifth stage serve the firm's board of directors research on the long term future based on operation decide to models (cortex cerebral). Thanks a computer thus mechanism using control can be automatically solved research operation designed the formalization of of the firm, problems function by the mathematical to a constitutes methods. The decision perfect support system for managerial choices in terms of the firm's be processes, to the role of workers in team assembly similar to by managers to Beer expects the role played behaviour. require more generalist's skills in order to appreciate more globally conceived problems through cybernetics. 3 UNIVERSAL MACHINES FOR SPECIALIZED MARKETS Mass-production implies limitation of and variety standardization in order to achieve quantity production. But according to intellectual (...). the case and Peter Smithson "Today, for standardization as such can be no made For machine processes can now make to the profile and degree rather machines to Alison than of use smoothness or hardness that needing to match production processes". (NC), computers, cybernetic methods satisfy requires, enable to a larger extent the diversity of a New firms market, while being more efficient than batch production. 1 C)5 potential for variable production and responsivity of firm to its environment through cybernetics are the This the of post-industrial production: cornerstone standard universal "rather than the a and the one-product machine aimed at general market, we have the universal machine, and by "machine" we now include the factory as a whole, capable of tame specialized markets" (1). adjusting to the vagaries of new tools and organizational techniques mentioned above modify the framework of application of standardization it If naive be would to entirely will think they its erase "Instead of tuning the consumer to the machine , now tune the machine to the consumer", says Chris necessity: we can Abel. But this credo announcing the best of possible worlds sounds to manicheist too be true. production Variety standardization. expensive (not in It cannot requires more as economical as be and sophisticated tooling, higher development, set-up, stockholding the case of NC machines), and distribution costs. Those draw-backs, however, can be balanced by gains achieved from a best-fit of the product itself (less material, better of satisfaction technical Though improvements feasible (prototypes, considered labor customer requirements), by and special from benefits and by access to larger markets. even items), worthwile in certain complete variety realistic from a resources cases cannot be viewpoint (material, and capital). Hence, the problem is, in the building arena, to determine how variety should be allocated. degree of variety and standardization will be different according to the type of component or process of production The considered. roof trusses Some components like windows, ready-cut are already offered in a wide variety glass, range can even be supplied to customers' requirement at short notice. Their production methods incorporate new control and 1 C.4 variety. A collaboration to accomodate controlled capacity a generate products. production and product between its less rigid and prove make standardization that tools designers process can better allocation of the degrees of freedom in variety should be the potential for Hopefully provided where it is most likely to be used or valued, while standardization should be focused in those aspects which are of less significance to the user. Anderson Laury States", "United society, technological which could be applied to many other in her vision of a countries points out the visual poverty and the absurdity of "my house is the yellow one with a suburban lanscapes: porche pool"; a and worshiping be to supposed any serious a society the individual as a source of richness, certain characteristic, reference signs, those in environments do such have not obviously constitute a maze-like surrounding. In reached an homogeneous almost variety equal to no variety at all. Galbraith's similar views on the social state, triming the industrial machiavelism of to serve its own purpose can be challenged by the possibilities of post-industrial systems of production more diversity responsive to social their environment and benefiting the system, instead of adapting it to industrial constraints. " "Would here?" said you tell me, please, where I ought to go from "That depends a great deal on where you want to get" from Lewis ".(Alice and the Cheshire Cat, the Cat" Carroll's "Alice in Wonderland"). In this work some tools and methods were presented to better people and industrial systems involved in the understand production of housing; the purpose here was neither to fall the desperation of dead-end prophecies, nor to advance society, changes as solutions for the ideal technological into but to increase our awareness of the actual possibilities of producing a richer environment. 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