American Manufacturing is still alive and well. There are thousands of precision machine shops across the country with an array of specialties. Most of these machine shops are drawn to the business model of high-volume production runs. Less experienced operators can run the job once its set up correctly, and big dollars come from each job.
As a result, it is getting harder and harder to find the right suppliers for low-volume precision machining when the job requires small batches and short runs. For the purpose of this article, Im mainly talking about jobs of 1-50, 50-300, and 300-1,000 EAU quantities. These quantities are highly prevalent in complex industries such as Medical, Semiconductor, Defense, Printing, and others.
From the manufacturers standpoint, it is incredibly hard to find the right jobs, labor, and equipment to make money at the low-volume end of the business. For OEMs looking to outsource this kind of precision machining work, it isnt easy to find a machine shop that has the capability to efficiently and effectively produce low-volume precision parts at a reasonable price. So, without further ado, I present you with some indicators that can help to identify a good low-volume precision machining partner.
In low-volume precision machining, setup is everything. The setup costs are amortized across the entire batch of parts for that run. Since the parts are essentially the denominator in the equation, the lower the number of parts, the higher the cost per part.
So often the setup has more effect on the overall unit cost than the cycle time! In large production lots, this is rarely the case. But in our special situation of low volumes, the importance of a fast and efficient setup is crucial. There are many times here at PEKO where we see setup times that are far greater than the total run time of all parts. It is the nature of the business and those shops with the fastest setups and the best setup reduction improvements are going to provide the best pricing and lead times.
Inspection is always a difficult bottleneck in any manufacturing process. It is slow, cumbersome, and tedious, but it must be done correctly. Todays CMMs are highly capable but that comes with a huge price tag. Finding a machine shop with a large and capable inspection department is going to help with the cost, quality, and delivery.
Low volume production runs mean that this shop must run multiple parts to stay afloat. As such, the inspection department is running a lot of first articles to ensure production is running smoothly. This creates a bottleneck itself as the CMM must set up and run dozens of different parts per day. Make sure to take into account the capabilities of the inspection area for your low-volume precision machining supplier.
Theres a big difference between running 10 part numbers at 50,000 EAU versus 500 part numbers at 1,000 EAU. In low mix, high-volume production, it is relatively easy to keep processes documented and production running smoothly. In this scenario, purchasing, routing, and logistics are done at rudimentary levels.
However, for high mix, low volume production runs, things change drastically. The low-volume precision machining shop must incorporate a highly sophisticated ERP system. A snowball effect is created when the ERP and team arent correctly prepared for the complicated routing and purchasing procedures for each part.
Having a skilled team to operate the high mix, low volume environment is absolutely crucial to success. The skill level of these employees is typically higher than their high-volume counterparts due to the nature of the work required. This includes most of the above, such as being able to do quick setups, getting parts through inspection, and understanding the ERP system.
Operators and manufacturing engineers must work together to ensure the flow is proper and that no time is wasted. When choosing a low-volume precision machining partner, ensure there is a capable and properly trained team on the job.
Remember, low volume machining is a different animal than its mid-volume and high-volume counterparts. Good precision machine shops for low volume will have similar traits, but there are critical factors that will separate them. Having great setup times, large inspection areas, a robust ERP system, and qualified personnel are the keys to success for these suppliers.
When you have a need for low-volume precision machining, how do you sort the great from the decent or not so good? To help you in evaluating and selecting an ideal partner, weve prepared a list of eight critical questions to ask before choosing a precision machine shop.
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Low volume manufacturing strategies center on creating small batches of products cost-effectively. They require rethinking the traditional focus on rapid production for the mass market and targeting processes that maintain efficiency and quality for every product. Low volume manufacturing strategies arent for everyone, but in some industrieslike medical device creationthey are indispensable.
Of course, not all low volume manufacturing processes are the same. They need cultivation based on whats best for the creators product and their target market. Thats why anyone considering a low volume approach should look at some of the more popular options to choose the best path to market.
Choosing a low volume manufacturing strategy centers on the expense in the creation of the product, the development timeline, and its overall complexity. After reviewing those criteria carefully, the creator should look at some of the most common strategies used in production to define their own individual processes.
High Mix, Low Volume manufacturing may appear to be a chaotic process, as typically, many different products are created together in small batches. This strategy will require many process changes and a diverse set of materials and tools. As such, its not an option thats well suited to an assembly line environment as it requires creativity and adaptivity.
HMLV is typically the right choice when there are a lot of components in a single product, or in cases with product creation aggregationlike with contract manufacturing. Its a favorite in outsourcing as it allows the company to maintain multiple income streams rather than relying on a single product.
Lean principles dont seem designed for low volume manufacturing, at first glance, but there are some useful aspects which are applicable. One such element is about waste reduction. Even in low volume, its good to create a process that will allow the building of a single product in as few steps as possible. By continually striving to improve methods, creators can better scale the operation and make the production stage more cost-effective.
Using an adaptative lean model in manufacturing isnt ideal for every circumstance. This method is typically best used when creating a series of identical products or ones that arent particularly complex, as the process will allow for little deviation. Lean is probably one of the best solutions for creators who are particularly concerned about controlling costs. The standardization will enable them to see exactly where the most significant percentage of their funding goes and then scale back as needed.
JIT can work in low and high-volume environments. Its really about serving demand. Instead of creating products in anticipation of sales, manufacturing occurs after the order. This option allows manufacturers to keep inventory low and save storage space while controlling costs.
JIT is best in areas where the creation of products is very time-consuming or expensive. Its especially useful when the material to develop products is scarce or costly. Thats why its a popular model in the automotive industry. Its also a production method that pairs well with the creation of custom items.
Creators dont have to settle on a single process when choosing their low volume manufacturing strategies. They can pick and choose elements from all the base models and create a solution thats perfect for their unique product. Even things that dont seem like they could work togetherlike HMLV and Adaptive Leancan work when the creator partners with an experienced manufacturer.
Low volume manufacturing strategies work best when the creator keeps the majority of their product development process in the same place. Using a partner who can design products, build prototypes, and create tooling will help to control costs and ensure a simplified manufacturing run. Individuals who specialize in low volume manufacturing will be familiar enough with all the available strategies to ensure success regardless of whether theyre developing ten, twenty, or a thousand products.
Pacific Research Laboratories uses a wide range of low volume manufacturing strategies to help you get your idea in the hands of consumers. To learn more about our processes, visit our contact page or call (206) 408-.PRL is a full-service product development company that specializes in all aspects of production, from design to product fabrication and prototyping. Our experts are here to guide you through the full product development process, including the ideation, design, creation, and management of your product idea.
The company is the world’s best low Volume Manufacturing Service supplier. We are your one-stop shop for all needs. Our staff are highly-specialized and will help you find the product you need.