**1. Introduction**

The digital transformation of the manufacturing process has been underway for a long time, as seen in innumerable examples [1–3]. In the high-tech sector—for example, in the electronics industry—digitization is rapidly progressing, as demonstrated by the advent of 3D printers [4, 5].

© 2016 The Author(s). Licensee InTech. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. © 2018 The Author(s). Licensee InTech. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

However, digital transformation in low-tech and traditional industries is progressing more slowly. The human factor is greater in the food manufacturing industry, which retains many more labor-intensive elements than other manufacturing industries [6]. This is because regionality is a major factor when differentiating foods from each other. Traditionally, the development of foods was customized to the climate and cultures of particular regions, so many foods were not suitable for mass production (except for certain kinds of foods that were consumed globally), which has led to the high level of personal skills in the food manufacturing industry.

discuss is the very medium-sized manufacturer. SMEs and even large companies could learn from the case about how the traditional manufacturer created a new manufacturing system

Manufacturing Transformation toward Mass Customization and Personalization in the…

http://dx.doi.org/10.5772/intechopen.72312

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The structure of this chapter is as follows. In the next section, we summarize the theoretical background of process innovation, which has changed from mass production to mass customization, along with the transition of the traditional Japanese food industry. Next, we conduct a case study of sake breweries that have attempted to develop new manufacturing processes and provide added value. Finally, we discuss the prospects and problems of this

**2. Theoretical framework and social background of manufacturing** 

The manufacturing paradigm has always experienced ongoing shifts. The first paradigm was that of the handcraft in which core processes were executed by highly skilled craftsman. When tools were required, the master of those tools generally possessed the needed skills. As wealth accumulated and market demand increased, the manufacturing paradigm changed to a wholesale handicraft manufacturing system. However, in the wholesale system, it was difficult to manage the equipment which was distributed to each manufacturer. Later, this system changed to employ hand-based factories that brought the equipment and the laborer together. On the other hand, there are cases that have retained a household-based handcraft industry. Typical cases include traditional crafts industries across the country. The following three items are common aspects of such industries: (1) manufacturing regional products, (2) requiring skills that are difficult to mechanize, and (3) manufacturing products with a low price elasticity. Sake brewing, the main target of this chapter, is a traditional craft industry that features all

Society then entered the Industrial Revolution. Important examples of this revolution include technical innovations in the process of cotton fabric, economic growth in the iron and steel industry, and reform for power source from the development of the steam engine. This revo-

Both manufacturing and selling were limited to local geography during the age of handcraft manufacturing, as the steam engine had not yet been invented. Since it became possible to deliver products further, the industrialization process moved to mass production achieved through the rapid development of a production system. Factory-based industry realized mass

Nevertheless, the product types available were limited, and in the latter half of the 1980s, society had seen a change from an era in which many people wanted the same products to an era in which people expressed a diversity of interests; as a result, manufacturing industry competition evolved to provide high product variety, known as mass customization. Mass customization is a flexible manufacturing system that creates custom-made options. It is a system that combines the mass production process of low cost with flexible personalization.

and realized a new business model.

three of these aspects.

transition and consider its effects on the industry.

**transformation and mass customization**

lution also established factory-based industry.

production at a lower cost than before.

The existing literature has noted that the food manufacturing industry is not deploying innovation activities as actively as other manufacturing industries [7–9]. Moreover, the industry's research and development intensity is also low [10–13]. In the traditional Japanese food manufacturing industries producing miso, soy sauce, tofu, sake, etc., quality control based on sensory-oriented skills continues to be performed by professional craftsmen. In some cases, the skills of these craftsmen, known as Takumi ("artisans"), have been handed down unchanged for hundreds of years.

In this chapter, we focus on new trends in the sake manufacturing industry. The head craftsman at a sake brewery, known as Toji, manages the entirety of the manufacturing process and determines the length and timing of each process, all of which greatly affect quality. Therefore, sake quality, including taste, scent, and texture is determined by the skills of the Toji.

However, in these circumstances, some sake breweries have started to make sake in a new way that breaks with tradition. This new approach represents a transformation from traditional production to mass customization and personalization. Some breweries are implementing smart manufacturing and customization to respond to diversified customer needs without altering the product price through the digitization of the manufacturing process, the formalization of personal skills, and the strengthening of the customer relationship.

After considering several advanced companies, we conducted a case study of the Sekiya Brewery Co., Ltd. (Sekiya), in the Aichi Prefecture of Japan. This pioneering company has developed a mechanized integrated system at the head factory and a custom-made sake-brewing system at its workshop. This company also switched from the external head Toji system to an internal Toji system. In the old Toji system, most Toji had a part-time contract. If the Toji changed, the taste of the sake might dramatically change. However, in the company's internal system, regular employees serve as Toji, thus enabling the long-term production of sake of a consistent quality.

This chapter makes two contributions to previous studies: one is for academic communication and the other is for the food industry. First, it shows and discusses the advanced customized manufacturing process. As mentioned below, the manufacturing paradigm has been shifting to mass customization; but the speed is different from industries. The most advancing industries for the paradigm shift are chemistry, automobile, and electronics, which have been driven by digitalization and remarkable innovations such as a 3D printer. And now, we can see that the traditional food industry also challenges the manufacturing paradigm shift, and they succeed.

Second, if the traditional food industry achieves the new manufacturing paradigm, it would be a great opportunity for SMEs in this industry because the case study this chapter will discuss is the very medium-sized manufacturer. SMEs and even large companies could learn from the case about how the traditional manufacturer created a new manufacturing system and realized a new business model.

However, digital transformation in low-tech and traditional industries is progressing more slowly. The human factor is greater in the food manufacturing industry, which retains many more labor-intensive elements than other manufacturing industries [6]. This is because regionality is a major factor when differentiating foods from each other. Traditionally, the development of foods was customized to the climate and cultures of particular regions, so many foods were not suitable for mass production (except for certain kinds of foods that were consumed globally), which has led to the high level of personal skills in the food manufacturing industry. The existing literature has noted that the food manufacturing industry is not deploying innovation activities as actively as other manufacturing industries [7–9]. Moreover, the industry's research and development intensity is also low [10–13]. In the traditional Japanese food manufacturing industries producing miso, soy sauce, tofu, sake, etc., quality control based on sensory-oriented skills continues to be performed by professional craftsmen. In some cases, the skills of these craftsmen, known as Takumi ("artisans"), have been handed down unchanged

In this chapter, we focus on new trends in the sake manufacturing industry. The head craftsman at a sake brewery, known as Toji, manages the entirety of the manufacturing process and determines the length and timing of each process, all of which greatly affect quality. Therefore,

However, in these circumstances, some sake breweries have started to make sake in a new way that breaks with tradition. This new approach represents a transformation from traditional production to mass customization and personalization. Some breweries are implementing smart manufacturing and customization to respond to diversified customer needs without altering the product price through the digitization of the manufacturing process, the

After considering several advanced companies, we conducted a case study of the Sekiya Brewery Co., Ltd. (Sekiya), in the Aichi Prefecture of Japan. This pioneering company has developed a mechanized integrated system at the head factory and a custom-made sake-brewing system at its workshop. This company also switched from the external head Toji system to an internal Toji system. In the old Toji system, most Toji had a part-time contract. If the Toji changed, the taste of the sake might dramatically change. However, in the company's internal system, regular employees serve as Toji, thus enabling the long-term production of sake of a consistent

This chapter makes two contributions to previous studies: one is for academic communication and the other is for the food industry. First, it shows and discusses the advanced customized manufacturing process. As mentioned below, the manufacturing paradigm has been shifting to mass customization; but the speed is different from industries. The most advancing industries for the paradigm shift are chemistry, automobile, and electronics, which have been driven by digitalization and remarkable innovations such as a 3D printer. And now, we can see that the traditional food industry also challenges the manufacturing paradigm shift, and

Second, if the traditional food industry achieves the new manufacturing paradigm, it would be a great opportunity for SMEs in this industry because the case study this chapter will

sake quality, including taste, scent, and texture is determined by the skills of the Toji.

formalization of personal skills, and the strengthening of the customer relationship.

for hundreds of years.

60 Digital Transformation in Smart Manufacturing

quality.

they succeed.

The structure of this chapter is as follows. In the next section, we summarize the theoretical background of process innovation, which has changed from mass production to mass customization, along with the transition of the traditional Japanese food industry. Next, we conduct a case study of sake breweries that have attempted to develop new manufacturing processes and provide added value. Finally, we discuss the prospects and problems of this transition and consider its effects on the industry.
