Executive Briefings

Boosting Profitability of High-Mix/Low-Volume Production

Historically, low-variation/high-volume production has been tweaked to gain optimal efficiencies and quality. Unfortunately for many manufacturers in the United States, manufacturing is now done in high-variation/low-volume environments.

However, the market advantages of the former are clear: better tailoring to specific customer demand, improved responsiveness and lower inventory requirements for finished goods. Nevertheless, this production scheme has traditionally yielded lower quality output because of variation. This is a fact of life for modern manufacturers, but there is still a need for improved quality and lower operational costs.

Despite changing needs from customers, manufacturers can make their processes so robust that in fact, they seem like low-variation processes and thus yield the optimization opportunities of high-volume production.

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However, the market advantages of the former are clear: better tailoring to specific customer demand, improved responsiveness and lower inventory requirements for finished goods. Nevertheless, this production scheme has traditionally yielded lower quality output because of variation. This is a fact of life for modern manufacturers, but there is still a need for improved quality and lower operational costs.

Despite changing needs from customers, manufacturers can make their processes so robust that in fact, they seem like low-variation processes and thus yield the optimization opportunities of high-volume production.

Read Full Article