Standardization Or Customization

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Organizational Process and Structure Q: What would you suggest, Standardization or Customization and why? Give advantages of the one you suggest and disadvantages if any. A:“Standardization is formulation, publication, and implementation of guidelines, rules, and specifications for common and repeated use, aimed at achieving optimum degree of order or uniformity in a given context, discipline, or field.” The above is the meaning of the word standardization from a business dictionary. The process of standardization caters to a number of advantages to the organization. Standardization is an efficient method to reduce costs and increase quality. By minimizing the differences in your products, you are able to rapidly increase production, streamline distribution, decrease raw material costs and reinforce product branding. The best product standardization strategies allow you to balance the need for targeted adaptation with the cost savings of standardization. The goals of standardization within an industry have to do with survival and growth of products and manufacturers in that industry. If each manufacturer creates a product that only works with their existing products, then consumers are limited in what they can choose from. In addition, the industry suffers if there is no possibility of overall growth due to monopolizing the market. Standardization is used to ensure safety, quality, compatibility, repeatability, integration and commodification*. Every phenomenon in the real world not only has advantages but also consists of certain flaws. Therefore it will be inappropriate to say that standardization does not have its disadvantages. Standardization eliminates or diminishes the progress through technology, as changing the standards would be time consuming. Application of standardization varies from industry to industry; similar standards cannot be used

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