ADVANTAGES OF SHORT-RUN AND LONG-RUN PRODUCTION MANUFACTURING

advantages-of-short-run-and-long-run-production-manufacturing

The most known types of production cycles in the manufacturing processes are short-run and long-run production. Of course, there are many in between, even longer ones, but it all depends on internal and external company factors.

The different factors that can show up determine the selection of production cycles. For example, an external factor includes regulatory changes. However, a regulation change isn’t something a company can control, so having a backup with other manufacturers can help any company meet lead times. Another example is internal factors including market conditions, which are also not under your direct control.

The best a company can do is to be prepared for whatever comes along. If there’s no demand for what you’re producing, then you’ll have to adjust accordingly or find another product line.

Advantages of short-run productions

Creators who use this type of prototyping have an opportunity to make improvements before committing to large-scale manufacturing. They can test new designs with smaller quantities of materials and components. The ability to quickly change prototypes makes it easier to create better versions of existing products.

In addition, there’s no need to invest in expensive machinery. Instead, creators can focus more resources on product development. In short, the advantages of short-run production for companies are:

  • Cost-effective
  • Fewer usage of resources
  • Less investment risk
  • Shorter production time

 Advantages of long-run production

On the other hand, companies deciding to use long-run production can accurately predict how many units of each product their customers will consume, making it viable to commit to a manufacturer that provides good results and VIP treatment. Allowing time to make their internal production be concentrated on new products or in other production lines they would like to have in-house.  

It’s when all costs are considered for each unit produced, including both direct and indirect costs. Variable costs include those that vary with quantity. For example, if your company produces widgets, it will incur more material costs per widget during peak season compared to the off-season.

In addition, the investment in the machinery will be making a long-term process of obtaining bigger profits. Instead, the focus on product development will only be on maintaining the quality. In short, the advantages of long-run production for companies are:

  • Gain higher profit margins
  • Continuous production 

Count on a trusted group of engineers and technicians with many years of experience in manufacturing

The ability to produce high-quality products at competitive prices might be the goal. Still, to lead times, and meet expectations and the company’s goals, you need a partner that’s directly aligned with your success.

ARRK North America, Inc. already has the team with the knowledge, the machinery, the reliability, and the specialized team to handle the requirements of your project. 

We can help you get started by providing an initial quote. Then, we will work closely with you throughout the design process to ensure we meet all your requirements.

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