How to Make an Order Decision for Low Volume Manufacturing?

Because of the wide range of batch production, it is usually divided into three types: "mass manufacturing", "medium batch manufacturing" and "low volume manufacturing". Introducing small batch production refers to the production of a single product that is a special product for small batch needs.

Single-piece small-batch production is typical build-to-order manufacturing (MTO), and its characteristics are similar to single-piece production, and are collectively referred to as "single-piece low volume manufacturing". Therefore, in a sense, the term "single-piece low volume manufacturing" is more in line with the actual situation of the enterprise. So what is the ordering decision for low-volume manufacturing? Let's take a look.

The following is a list of contents:

* For single piece low volume manufacturing

* For production companies

For single piece low volume manufacturing

Due to the random arrival of low-volume manufacturing orders and the one-time demand for products, it is impossible to make overall arrangements for the production tasks during the planning period in advance, and linear programming cannot be used to optimize the combination of varieties and output.

However, single-piece low-volume manufacturing still needs to prepare a production plan outline. The production plan outline can guide the production and operation activities of the enterprise and the decision to accept orders during the planned year. Generally speaking, when the outline is prepared, there are already some confirmed orders. The company can also predict the tasks of the planned year based on the historical situation and market conditions, and then optimize it according to resource constraints.

The production plan outline of a single-piece low volume manufacturing enterprise can only be instructive, and the product production plan is made according to the order. Therefore, for single-piece low-volume manufacturing companies, the decision to accept orders is very important.

When a user order arrives, the company has to make decisions about whether to pick up, what to pick up, how much to pick up and when to deliver. When making this decision, it must not only consider the product variety that the company can produce but also accept the task and work. Production capacity and raw material, fuel, power supply status, delivery requirements, etc., and consider whether the price is acceptable. Therefore, this is a very complicated decision.

Low volume manufacturing user orders generally include the product model, period, technical requirements, quantity, delivery time and price to be ordered. There may be the highest acceptable price and the latest delivery time in the mind of the customer. After this period, the customer will find another manufacturer.

For production companies

will use its quotation system (computer and manual) to give a normal price P and the lowest acceptable price according to the products ordered by customers and the special requirements for product performance and market conditions. There are task conditions, production capacity, and production technology advancement cycle, product manufacturing cycle, through the delivery date setting system (computer and manual) to set a delivery date under normal conditions and the earliest delivery date in the case of rush work.

If other conditions such as variety and quantity are met, the order will be accepted. The accepted order will be included in the product production plan; when Pmin> Pcmax or Dmin> Dcmax, the order will be rejected.

If it is not for these two situations, there will be a very complicated situation that needs to be resolved through negotiation between the two parties. As a result, it may be accepted or rejected. Tighter delivery dates and higher prices, or looser delivery dates and lower prices, may be concluded. Orders that meet the optimized product portfolio of low-volume manufacturing companies may be executed at a lower price, and orders that do not meet the optimized product portfolio of low-volume manufacturing companies may be executed at a higher price.

It can be seen from the order decision-making process that the determination of varieties, quantities, prices, and delivery dates is very important for low-volume manufacturing enterprises.

Conclusion

TEAM MFG is a rapid manufacturing company focusing on ODM and OEM, started in 2015. We provide a series of rapid manufacturing services such as rapid prototyping services, CNC machining services, injection molding services, and die-casting services to help designers and customers with low-volume manufacturing needs. In the past 10 years, we have helped more than 1,000 customers successfully bring their products to the market. As our professional service and 99%, accurate delivery makes us the most favored in the customer list. If you are interested in low volume manufacturing, please contact us, our website is https://www.team-mfg.com/.