Scales of Production

What are the Scale of Production?

• Decisions on scale of production are influenced by the volume or quantities required, types of materials used to make the products and the type of product being manufactured.
• There are also considerations of staffing, resources and finance.

• The four scales of production are:
• One-off Production
  • An individual (often craft- produced) article or a prototype for larger-scale production.
• Batch Production
  • Limited volume production.
  • A set number of items to be produced.
• Mass Production
  • The production of large amounts of standardized products on production lines, permitting very high rates of production per worker.
• Mass Customization
  • A sophisticated CIM system that manufactures products to individual customer orders.
  • The benefits of economy of scale are gained whether the order is for a single item or for thousands.

Economies of Scale

• Large-scale production, achieved through operational and manufacturing efficiency.
• This helps in reducing the cost of production, reducing the cost per unit (cost of products manufactured).

• The more you can make, the cheaper it costs to manufacture. This results is higher profit margins and/or cheaper retail pricing for the customer.
• If you've ever wondered why larger companies can sell the same products for a lot cheaper than small local firms, it is because they have the benefits of economies of scale.

One-off Production

• In one-off production often a single product is designed and made to a client’s specification.
• Labour and material costs are high, and a high level of design and manufacturing skills are needed.

• The product is often very expensive, but can be customized and is often completely unique.
• Some one-off products might be sold by a professional or master and have unique artistic or functional qualities.
• 3-D printing makes one-off production much more accessible.

• Examples of one-off production include:
  • prototypes / samples (e.g. car or clothing production)
  • hand crafted items (e.g. wedding dress, jewellery, dolls, pottery, Instruments)
  • specialist engineering
  • specialist architecture (e.g. individual homes, skyscrapers, hotels like the Hydropolis)
  • products that are generally unnecessary and too costly to mass produce, such as cruise-liners

Batch Production

• The best method of production depends on the type of product being made and the size of the market.  
• Batch production is used to meet group orders.
  • For example, a set of machines or production lines could be set up to make certain specific shipping containers.

Mass Production

• Mass production is used for products that are needed in very large numbers, for example electronic products.
• Often, products are made overseas where labor costs are lower and assembly lines are used.

Continuous Flow Production

• A production method used to manufacture, produce or process materials without interruption (24/7).
• Robots are used very commonly in mass production as a whole, and especially in continuous flow production.

Mass Customization

• Usually the basic form of the product is constant but by using flexible CAM systems the product can be customized in terms of color combinations, texture, patterns.
• It is a compromise between mass production and on-off/batch customization where customization is limited in order to allow for mass production to take place.
• Generally it results in some increased costs, although it is still relatively affordable.

• The relationship between the manufacturer and customer becomes closer because the individual requirements of the consumer dominate.

• The mass customization process begins at a website where the user has the opportunity to choose aspects of the design.
• The idea is that the manufacturer is meeting the needs of the user although using manufacturing techniques that remain the same.

• The growing phenomenon of mass customization brings consumers into the design process, allowing them to make choices that make a product unique, to make it their own.
• Companies have developed “design stations” in their retail stores where consumers can create virtual 3D models, “try them out” using digital technology and place their order.