Do the uncertain orders leave you with unsold inventory causing you keeping the cost high? Are you not meeting quality standards? Or you have just started up as a manufacturer? Whatever type of manufacturing business you are running, some problems like cost-cutting, out of capital investment, and many more remain part of the company until you have solutions.
According to a survey, one of the leading solutions to all the problems above is small batch production. Reduction in batch size is one of the eight underlying principles by Donald G. Reinersten from his principles of a product development flow.
We have come up with five favors below to ensure that batch production is more beneficial than traditional mass production.
Manufacturing or assembling products in small batches will allow the labor force to concentrate carefully on the single unit even although the repeated work makes it easier to identify and rectify an error, which in the long run ensures a better quality of the product.
Cut down costs
The Maintenance of extra stock makes the keeping cost high. When you manufacture in small groups, you will order the required quantity, which leads to cut down the cost. On the other hand, if you order more frequent in less time than it would higher your re-ordering cost too, so you need to be very careful while calculating the correct time between each order.
Low Material Wastage
If your manufacturing is heavily labor-intensive, the repeatedly processing by them will low the chances of an error and material wastage.
It is complicated for a mass production manufacturer to fulfilled specialized orders where the small-batch manufacturing companies can entertain customized orders more manageable and smoother.
Are you newly got into manufacturing or assembling business? Or your startup required a pool of capital? If so, start your work with small batches, it would make you learn about your product variants in a very particular way and ensure you whether you are in the right direction.
Approach Austin Trim to get started with the work on-demand with the specialized labor and automation. We have already work with the most famous brands. .we value and motivate the talented young entrepreneurs for their startups, we are here to assist within affordable prices. Visit Austin Trim to know more.