High-Volume Production vs. Low-Volume Production

Welcome to IDEAL's ultimate guide to High-Volume Production vs. Low-Volume Production!
Our blog is a comprehensive resource for anyone interested in learning more about this versatile and affordable surface finish option.

What Is High-Volume Production?

In essence, high-volume production is the ability to mass-produce products or parts quickly and efficiently.

Low-Volume Production

• 1-10,000 parts per year

• Short lead times and low setup costs

Mid-Volume Production

• Less than 10,000 or 50,000 parts per year

• Moderate lead times and setup costs

High-Volume Production

•  Greater than 50,000 parts per year

• Moderate lead times and setup costs

Difference Between High-Volume and Low-Volume Production

Context is important when defining what is considered to be low-volume or high-volume production. It boils down to the fact that different manufacturing processes are more cost-effective at a certain level of production than others.

Other important factors that impact production cost at volume are:

• Setup time

• Adaptability to implement design changes

• Precision and accuracy of producing the part at volume

High-Volume Production

High-volume production is ideal for products that are in high demand, such as commodities. Companies trying to make a prototype or product and quickly mass-produce it to meet market demand will find the most use (and resource savings) from manufacturing in high volumes.

Unit costs are significantly less expensive than low-volume production unit costs. For example, you may be looking at $700 per unit for low-volume, but only $0.02 per unit for high-volume.

Pros of High-Volume Production

Quick turnaround time

Ideal for large orders

Manufacturers can meet more of market demand

Greater ROI due to saving on production costs

Cons of High-Volume Production

Inflexibility with things like design changes

Limited production capacity

Not ideal for small orders

Require a large amount of resources with traditional manufacturing

Low-Volume Production

Low-volume production is excellent for small businesses or businesses that are introducing a new product slowly into the market. This production volume is generally used for prototypes and custom or limited-edition products.

Pros of Low-Volume Production

Lower minimum order quantities

Lower overhead costs

Less material waste

Greater flexibility with iterative changes

Fast prototyping of different designs

Cons of Low-Volume Production

Higher unit costs

Longer lead times

Limited production capacity

Inability to respond to high market demand

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?

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.

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Conclusion

At IDEAL, we excel in providing top-quality custom machining services tailored to meet your project needs. Our advanced technology and skilled team ensure your specifications are met with exceptional accuracy and efficiency.

Contact IDEAL today to see how we can assist with your next project!