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Running a successful business in the 21st century involves making agile decisions and keeping up with the market. In this article, we discuss the benefits of short-term manufacturing, a modern form of entrepreneurship that has been adopted by companies for today’s dynamic marketplace.
Short-term production is a bold approach to production that favors short-term trades over long-term production. It enables entrepreneurs to diversify their risk portfolio by taking ownership of different product lines and managing every project down to the last detail to maximize profitability.
In economics, the term short-term production refers to production in which at least one resource is fixed. This fixed resource can be machinery, labor, supplies, or time. Consequently, the total output is limited. The goal then is to optimize performance within this boundary.
Although this approach may seem unproductive at first glance, it nevertheless promotes the efficiency of business operations. In particular, through the use of cutting-edge technologies such as Industry 4.0 and CNC rapid prototyping, significantly higher yields can be achieved with products than with conventional mass production.
Product development is always an iterative process. A rigorous prototyping process is critical to good product lifecycle management, as initial designs always have errors. In such situations, quick design updates are of great help.
One of the benefits of low-volume manufacturing is the added flexibility to update product designs at any time. Due to batch production, updates can always flow into upcoming batches.
For example, customer feedback may indicate that a particular product is too heavy after the first batch delivery. The product designers can quickly fix this problem by using a lighter material and making the next batch accordingly. This simple measure can prevent the defective product from reaching a larger audience, sales figures do not decrease, and customer satisfaction and trust in the brand increase.
Companies that operate small series production are often more involved in the production process.
Because a proactive approach is better suited to meet short-term goals, most manufacturers choose to manufacture in-house rather than outsource. This gives them direct control over product prototyping and manufacturing. Therefore, it is easy to quickly incorporate changes that the client or customers want.
Among the many benefits of a short run prototyping process is the opportunity to develop a personal relationship with customers. Customers’ needs can be better met and they can make valuable contributions to production planning if they have direct access to employees such as product developers and general managers. This not only improves product quality but also helps build a loyal customer base.
The serial production approach mentioned above can be used to provide proof of concept for product ideas. Companies can develop a product and test its performance by offering it to the market before actual production begins.
Once proof of concept is provided in the form of a tangible product and customer feedback, customers are more willing to take risks and invest in a larger production.
Start small batch production with Winsun Proto
Winsun Proto is a leading provider of world-class low-volume manufacturing services such as CNC machining, sheet metal fabrication, injection molding, 3D printing, and more. Our short lead times and competitive pricing, complemented by our rigorous quality assurance standards, give us an edge over our competitors.
With Winsun Proto, you get 24×7 technical support for your manufacturing needs. Our talented team of engineers with years of manufacturing experience is always available to answer your questions.
We also provide a user-friendly online quotation platform on our website. Simply upload your CAD design files and receive fast DFM feedback and a quote from our experts.
Bonus: See the advantages of short-term production over long-term production
In this bonus section, the advantages of short-term production over long-term production quickly become apparent. Let’s go through the main points:
Cheaper and more efficient inventory: If your production is geared only toward fulfilling the next delivery and not to mass production and warehousing, inventory control is not an issue. Your business will spend less on storage space and management.
Dynamic product development: There is a greater chance of improving your product’s design when you produce in small, measured batches and monitor performance from batch to batch. Through the intelligent use of rapid prototyping and agile management, design updates can be introduced iteratively with each product batch and their lifecycle extended.
Stronger customer relationships: You can get regular feedback from customers after each batch is shipped. When their feedback is incorporated into future batches, customers are more likely to remain loyal to your brand. It’s also a good technique for staying in touch with your customer base, a subtle form of marketing.
More control over business spending: You can make decisions about your short-term investments. If production targets are low in a given period, you can redirect investments to other areas, avoiding losses due to redundant resources. Need to produce more? Use the investment reserves and benefit from the economies of scale! Micro-managing corporate finances is more profitable.
This guide provides an overview of the benefits of short-term production. If you need a small series, Winsun Proto can provide you with an offer for your individual production on request in seconds. Contact us or learn more about our prototyping and manufacturing services.
If you have any questions, please feel free to contact Winsun Proto