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When it comes to manufacturing, there are two main types: low volume and high volume. Low volume manufacturers service smaller projects, while high volume manufacturers service larger projects that offer cost savings with economies of scale.
However, not all businesses are the same, and many may be debating low volume vs. high volume manufacturing. In this blog post, we will discuss the pros and cons of high volume vs low volume manufacturing so you can make the best decision for your business.
What is Low Volume Manufacturing (LMV)?
Before comparing high volume vs low volume manufacturing, we need to understand the definition of each. Low volume manufacturing is the process of manufacturing products in small quantities. This type of manufacturing is typically used for prototypes, custom products, or limited-edition runs.
Low volume manufacturers generally have shorter lead times and can be more flexible with design changes than their high volume counterparts.
What are the Pros of Low Volume Manufacturing?
There are several benefits to low volume manufacturing, including:
- Lower minimum order quantities
- Lower overhead costs
- Less material waste
- Greater flexibility with design changes
Low volume manufacturing is typically a more cost-effective option for small businesses or businesses that are introducing a new product to the market. When comparing high volume vs low volume manufacturing, you need to consider the variety of products needed. Low volume high variety production is possible, giving more flexibility in meeting consumer demands.
What are the Cons of Low Volume Manufacturing?
Despite the many benefits of low-volume manufacturing, there are a few potential drawbacks, including:
- Higher unit costs
- Longer lead times
- Limited production capacity
If you need a large number of products quickly, low-volume manufacturing may not be the best option. However, if you're looking for a more cost-effective solution for a small batch of products, low-volume manufacturing could be the perfect fit.
What is High Volume Manufacturing?
High volume manufacturing is the opposite of low volume manufacturing &#; it's used to mass produce products quickly and efficiently. High volume manufacturing is often used for products that have high demand, such as electronics or car parts.
What are the Pros of High Volume Manufacturing?
The biggest advantage of high-volume manufacturing is that it's fast. If you need a large number of products quickly, this is the best way to get them. High volume manufacturing is also very efficient, so you'll save on production costs.
Pros of high volume manufacturing include:
- Quick turnaround time
- Cost-effective for large orders
- Allows manufacturers to stay ahead of the competition
What are the Cons of High Volume Manufacturing?
The downside of high-volume manufacturing is that it can be inflexible. If you need to make changes to your product, it can be difficult and expensive to do so. You'll also have less control over the quality of your products, as each one is identical.
Cons of high volume manufacturing include:
- Limited production capacity
- Not cost-effective for small orders
- Requires a large number of resources
What is Low Volume High Mix Manufacturing?
Low volume high mix manufacturing, also called high-mix low-volume (HMLV), is the process of producing a lot of different products in small quantities. This is a common technique for producing one-of-a-kind and complex items with specific quality demands. HMLV production necessitates frequent job modifications, material changes, and equipment adjustments.
When it comes to high mix low volume manufacturing lines and a wide range of product demands, operators working in this type of environment are exposed to a lot of change. This can often lead to inconsistency and errors in the scheduling of jobs and materials.
The choice between high volume vs low volume manufacturing processes depends primarily on the market demand for a product. Market testing is often more feasible in low volume, high variety production, contrasting the usual approach in high volume vs low volume manufacturing. If you are bringing a new product to market, then high mix, low volume manufacturing might be most appropriate for you.
High mix low volume manufacturing allows you to conduct better market testing. It&#;s a much more convenient way to introduce and assess new products without the need for high volume manufacturing runs.
By doing so, you can minimize your financial risk and make tweaks to the product as demands change. While this is a more complex manufacturing process, high mix low volume manufacturing gives you adaptability that can give you and edge over your competitors.
What About Products with High Volume but Small Variety?
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For products with high volume but small variety, there are a few different types of manufacturing processes you could use. The first is low volume injection molding, which is a process where molten plastic is injected into a mould to create your product.
With this method, you can produce large quantities of your product quickly and efficiently. However, one downside to this method is that it can be quite expensive to set up. If you have a small budget, this might not be the best option for you. You might initially focus on low volume manufacturing, and later shift your strategy to high volume vs low volume manufacturing based on market demand.
Another option for high volume but small variety products is low volume manufacturing. This is a process where your product is made using CNC machines, which are computer-controlled cutting tools. This method is more affordable than low volume injection molding, but it does have some downsides.
Another option is mass production, which is also known as high volume manufacturing. This is the most common method of manufacturing and it has a lot of advantages. One advantage of mass production is that it is very fast. This method is also very efficient and can produce large quantities of products quickly and cheaply.
The downside to mass production is that it can be quite impersonal. This method is also not well suited for products that require a lot of customization or detail.
Why is Mass Production Preferred for High Volume and Small Variety?
Mass production is often preferred over HMLV for high volume and small variety because it enables manufacturers to keep costs down, while still ensuring quality. This type of production is more efficient and less labour intensive, which often results in significant cost savings.
Distinct approaches are necessary when planning logistics and supply chains for high volume manufacturing vs low volume manufacturing. With low volume manufacturing, you don&#;t have to worry about having excess inventory. However, if you need to satisfy a larger demand, you should opt for high volume production.
That said, businesses looking to manufacture products in low quantities may find that low volume production is a better option. This is because low volume production is typically more flexible and can accommodate a wider range of product designs. Low volume contract manufacturing also allows you to have more control over the design and customization of products.
Low Volume vs. High Volume Manufacturing
So, which is right for your project? Should you use high volume vs low volume manufacturing? It depends on your needs. If you require a large number of parts quickly and can afford the unit cost, high-volume manufacturing may be the way to go.
However, if you need a smaller quantity of parts and have some flexibility on lead time, low-volume manufacturing could be the better solution.
Still not sure which is right for you? RCO Engineering has more than 43 years of experience in both low and high volume manufacturing. We&#;ve worked in aerospace, automotive, defense, and other industries. We can help you determine the best production method for your project, based on your individual needs. Contact us today to get started.
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Low-volume manufacturing can help manufacturing organizations keep costs in mind and focus their production on smaller volumes and batches of finished goods. In this article, we&#;ll go over what low-volume manufacturing is, what types there are, and why it&#;s benefits.
What Is Low-Volume Manufacturing?
Low-volume manufacturing is the prototyping of goods and products in small volumes. Hybrid techniques that combine additive and traditional manufacturing elements help reduce the overhead costs of tooling, labor, and materials while still producing products at a lower volume. It is becoming more popular over time, as it allows customers to invest less time and money while still getting fast access to different markets.
Because many industries have learned that low-volume production allows them to go to market faster, it is becoming more prevalent in factories and, therefore, is important for you to consider. It allows brands to change their designs, offer more customization, and decrease overhead costs.
Types of Low-Volume Manufacturing
There are three types of low-volume manufacturing that can be used to reach minimum order goals and produce goods: injection molding, CNC machining, and 3D printing. Below, we'll dive into each of these categories in greater detail.
Injection Molding
Injection molding processes are production processes that use a custom mold to produce products based on a project&#;s individual specifications. Raw material is picked for the product, heated to a liquid state, then poured into the mold cavity. Once the material has cooled inside the mold, it is opened, ejected, and processed for shipping. Meanwhile, the mold is reused to create a new product.
Injection molding can be used with a wide variety of materials, from plastics to metals and beyond. This process also helps create consistent products with high strength, durability, and weather resistance. For example, plastic parts can be poured into a mold to create an automotive part for a specialty vehicle, and the same mold can be used for the rest of the production run.
Read more: How One Plastics Manufacturer Saves $1.4M a Year Using Amper
CNC Machining
CNC machining uses software to input a pre-planned program that directs the movement of the tools and machinery within the equipment. CNC machining software can create complex products with three-dimensional cutting and forming by using directives and prompts.
CNC machining is another method that is repeatable and easy to accomplish for quick turnarounds and high-quality goods. It&#;s also scalable and can use various raw materials while having minimal investments in the machine's tooling, setup, and preparation.
3D Printing and Manufacturing
3D printing, which is sometimes referred to as additive manufacturing processes, uses the layering of raw materials to create products. Using CAD software, a designer creates a design, and then the software builds it. The software builds the design by building layers on top of each other using the machine's instructions. The process repeats after each product is built.
3D printing and manufacturing is great for products that need to be under a certain weight, as these processes can create very complex and delicate parts. It also uses less labor than traditional machining for mass production and has nearly unlimited customization and design freedom for different goods.
Benefits of Low-Volume Manufacturing
It is still true that high-volume manufacturing has many benefits for businesses who need to produce higher volumes of product and don&#;t have the option of producing smaller batches. However, there are four major benefits to consider with low-volume manufacturing and product development.
1) Gets Products to Market Faster
High-volume manufacturing that produces many units takes time to accomplish, even on the best equipment. This means that the time to market can extend for large-scale products, meaning you spend your time catching up instead of leading the way. With low-volume manufacturing, businesses can go to market quickly and introduce their products before competitors can.
2) Saves You Money
Another benefit of low-volume manufacturing is the money you can save. Especially for plastic injection molding and pressure die-casting jobs, there are much lower overhead costs to consider for tooling, materials, and labor. Over time, low-volume manufacturing can save your business more money for certain products than producing in high volume could.
3) Provides More Product Design Flexibility in Processes
When you aren&#;t making your products in high-volume production batches, you have much more design flexibility to change different parts of your product design, or offer different customization options to your customers. This allows you to have more freedom over the product and create the best product to secure your market share rather than a full-scale production.
Solutions for Low Volume Manufacturers
Low-volume manufacturing has many benefits that can appeal to customers. However, inconsistent demand and changing requirements can make it difficult to run your factory as efficiently as possible.
That&#;s where Amper comes in. Amper is a factory operating system that helps you get control over your operations and automates essential business functions. Amper helps your business run smarter with metrics, KPIs, and real-time data in manufacturing analysis solutions. Schedule a demo with us and get started today to learn more about what Amper can do for you.
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