Starting a production can be quite a challenge. Processes regarding logistics and planning are definitely not a favorite thing ever when it comes to creating a new product. How to make it more simple and innovative?
People commonly think that small batches of production are not cost-efficient. That's not always true! In a lot of cases, this type of production is more profitable. Let's take a look at some facts to prove the thesis.
As 3D Bistro we have been studying a lot of cases to check when it is better to pick low-volume manufacturing. The specific cases when this business model fits best:
1. New products.
When a new product is released it usually requires some modifications after a short period of time. Sometimes even a few changes. It would be wiser to choose a small production batch to make sure the changes can be implemented more easily and applied to the next batch of products. After it's tested, investment in tooling seems more reasonable.
Companies that just started are more likely to invest their capital in something else than tooling. Small batches production is a safer option for this type of business and ensures a better cash flow.
3. Agile environment.
Some businesses have an agile environment. That means it is often needed to change something in the production line or modify the product. Low-volume manufacturing makes it easier to implement the changes without waste of capital. An example is the automotive industry.
These examples show that there are situations in which this type of production generates more benefits than high-volume manufacturing. Even if the unit cost is a bit higher, this option is often safer.