Improve Product Specification Of H Company In Mass Customization Mode

Mass customization has become the mainstream mode during21st century automotive industry; the intensive competition has forced auto manufacturers to provide more and more models and specs for customers to choose. Automobile companies tend to provide option configurations as much as possible, which will inevitably lead to increased production costs and unnecessary waste. This article first analyzes configuration management and the problems faced by H Company in the situation of mass customization, from study the configuration status of the company; and then give the optimization method based on cost management and value engineering theories.This article focuses on two types of varieties-internal and external, and studies the two issues combined with activity-based costing and value engineering. By research the standard components and spec-related parts, this article provide the detail method to reduce the number of components and improve the model configuration in order to optimize the overall production cost without reducing customer satisfaction, and finally gain competitive advantage in the competition. Also, this article explores the changing of CODP for some parts to give customers more choices without increasing specs. Finally, this paper describes the results obtained by the above methods and put forward the existing problems, in order to give some advises for other manufacturers who want to improve their varieties management.