So You Want a Bicycle! Most major bicycle manufacturers-including Taiwan-based G

Question

So You Want a Bicycle! Most major bicycle manufacturers-including Taiwan-based Gi-ant, the world's largest bike maker, and Specialized Bicycles-are offering some form of "limited edition" or personalized model bikes that are produced in limited quantities, have frames signed by famous designers, come with custom paint jobs, or fit your body. The custom strategy is the latest attempt by bike makers to extract more dollars from a shrinking pool of riders. Still, bike makers were able to keep sales and profits up by adopting this limited-edition strategy. These bikes are made in small batches and are priced as high as $ 10,000 each. What type of process is needed to make these custom bicycles?^4

Explanation / Answer

The manufacturing system used in manufacturing of these “limited edition” model bikes is ‘assemble-to-order’. In assemble-to-order, the products are a composition or assembly of standard parts and subassemblies that can be selected by the customer from a limited set of option available. For example in case of bikes the customer can chose form a set of paint jobs for his bike to suit his needs.

For assemble-to-order products the process that is generally used is Job Shop Process. In job shop process the manufacturing process is organized around certain kind of equipments that are flexible and capable of customization for customer needs. In his process a variety of goods are produced in small quantities, where the orders are generally processed in batches. In the case of limited edition bikes, job shop process is used, where limited quantities of assortment of bikes are produced, but the production is basically organized around the basic equipment of bikes. Here to ensure customization in the final product, like having frames signed by famous designers, custom paint jobs, or fit as per body, etc. the bikes are produced in batches, in small quantities and sold as limited editions at high prices.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.