What is low volume manufacturing?
People build start-up companies or industries nowadays since entrepreneurship is the fashion today. For such inception, low volume manufacturing will be very helpful. Since a start with lesser production will be suitable for the proposed changes to make, these startups prefer to make a lesser investment until then the demand for their product rises. This gives them the time to think about the further additions and provides an extended period to collect venture capital as an investment for their production. By this, the factor of risk production is reduced.
Benefits of the industry:
For bigger companies, low volume manufacturing was done to create demand in the market and to meet them at higher returns for the rising demand. Certain companies outsource small industrial units to bigger companies in smaller numbers by altering according to specifications and according to the capital resources available. And by small production, they can range from 100 units to 1 lakh units.
Since there is a technological change or an innovation on the rise mostly, low volume manufacturing is a blessing in disguise since the innovations can be manufactured now and then with the necessary changes made are also tailored. The design flexibility is the major contribution given by this production along with low-cost services. The other advantage was that it acted as a bridge scaling up to intensive capital-based production once the financial resources soared up.
Examples for this domain:
To point out a few examples in this domain, we have metal fabrication, die casting, CNC machining, etc.
- Metal fabrication: metal fabrication is the process of bending and cutting metallic strictures which will later be assembled according to the proposal made. It involves many raw materials.
- Die casting: this involves shaping motion metal into a specific shape by pouring them into a mold cavity solidifying them under high pressure.
- CNC machining: it is also known as numerical control, automates the control of all the tools and machines with the help of a computer.
- Industrial casting: formed based on the lost-wax casting. It is a type of metal forming in which ceramic is poured to make shapes by using moulds.
Procedural facts and conclusion:
Initially, the making charges and average cost per unit in low volume manufacturing industries can be high but it slowly decreases as the demand rises steadily. The initial set up costs can be challenging since people do not come up so easily to invest or to put in seed capital for the MVP (Model Viable Product) to be made. But once the idea is sold and the MVP is accepted, venture capital is given by the investors or loans will be sanctioned by the bank under various schemes. Until then it is the proprietor who has to flush in the capital on his own or from his friends and family till then he gets the required funding and financial assistance he expects and seeks. But for a new entrepreneur low volume manufacturing is the ideal start-up.