[VIEW NOW] Types of production in businesses 2024

In the context of the 4.0 industrial revolution taking place at a rapid pace, businesses are facing challenges and also opening up many new opportunities. Understanding and applying modern manufacturing methods is key to improving performance, optimizing processes and staying competitive. Let's find out with 1C Vietnam in the article below to understand important trends and business development strategies for each type of production applicable to businesses in 2024.

1. Single production type

1.1. Features of single production

Single-unit production is the form of single production of each product, usually products with special properties or requiring detailed refinement. The outstanding feature is the diversity of product types, which in turn have distinct advantages and disadvantages.

Advantage:

• This type allows the production of many different types of products, and the number of products of the same type is often very small or even only one product unit.
• Single-unit production is highly flexible, quickly adapting to market changes by creating products according to specific customer needs.
• Quality control is more effective than with mass production processes.

Defect:

• Producing single items requires highly skilled workers to ensure the quality of the finished product.
• Classifying products of many types while the number of products of the same type is quite small, this is a challenge in production management.
• The technological process does not require meticulousness, usually focuses on operations, all work is performed on one machine, so the machine is arranged as a multi-purpose machine.

1.2. Example of single-piece production

Single-unit production is often applied in fields such as shipbuilding, architectural construction and mold manufacturing.

As an example of single-unit production, a boatbuilding business can create each fishing boat with a unique design based on the customer's specific requirements. Each product is a unique masterpiece, reflecting the hard work and high quality of our highly skilled workers.

2. Type of mass production

2.1. Mass production characteristics

Mass production, also known as mass production, is one type of goods production performed on a large scale, using repetitive processes and assembly lines. With the application of standard components and line techniques, this type offers both unique advantages and disadvantages.

Advantage:

• The production process is strictly monitored, resulting in high precision because the machines are pre-set with specific parameters.
• Mass production results in lower costs because automated assembly line production processes require fewer workers.
• Creates high levels of efficiency as products can be assembled at a faster rate through automation.
• Rapid assembly supports rapid distribution and marketing, creating a competitive advantage and higher profits for the company.

Defect:

• It is capital intensive and requires a significant investment of time and resources to build an automated assembly line.
• If there are errors in the production design, it may require a large investment of time and money to adjust and rebuild the mass production process.
• Although it does not require labor intervention, it still requires management and supervision from a manager, requiring greater expertise.
• Compared to single-piece production, mass production is less flexible, and process adjustments may be necessary for reasons other than technical problems.

2.2. Example of mass production

Mass production is widely applied in many fields such as mechanical industry, textile and garment industry, specialized electronics, and furniture production.

A typical example is the automobile company Ford Motor Company founded by Henry Ford. In 1913, Ford pioneered the application of the moving assembly line to produce the Ford Model T automobile. This process reduced production time and reduced costs, making the automobile a popular product that could be sold. can be purchased for the majority of people.

3. Type of production on request

3.1. Production specifications upon request

On-demand manufacturing is one of the types of intermittent manufacturing, where production work only takes place when there is an order request from the customer. This model brings great benefits in terms of profits, avoiding inventory, excess raw materials and labor. Below are the pros and cons of this type of production.

Advantage:

• Production to order helps optimize costs, avoid excess inventory and use raw materials and labor effectively.
• The production of rare products with specific orders adds to the reputation and value of the product, especially in the case of luxury and unique products.

Defect:

• High level of coordination from the manufacturing enterprise management system is required to ensure that the process runs smoothly and efficiently.
• Sophisticated management systems capable of planning and forecasting based on production line and material availability are important.
• Because product value is often high, customer information becomes important and needs to be managed with a high level of security.

3.2. For example, on-demand production

Production to order is often applied in special, high-value manufacturing fields such as the supercar industry.

A typical example is the Hybrid Lamborghini Revuelto supercar, which is only produced when there is an order, and is currently sold out until 2025. Production when there is an order not only helps optimize costs but also increases Add value and reputation to the product. A manufacturing enterprise management system, such as 1C Vietnam's mini ERP system, can be the optimal choice to manage customer information and optimize production processes.

4. Type of production for storage

4.1. Production characteristics for storage

Make to Stock, also known as Make to Stock (MTS), is a traditional method that many businesses use to produce inventory that matches customer product demand forecasts. This is a strategy with unique characteristics.

Advantage:

• Production for storage helps businesses be more proactive in providing products to suppliers and distributors, avoiding unexpected shortages and wasting time finding replacement sources.
• This method increases the opportunity to sell goods because there is always a source of goods in stock ready to supply, helping businesses earn more profits and not be passive to fluctuations in market demand.

Defect:

• The main disadvantage comes from incorrect prediction of market demand. If forecasted quantities are not accurate, inventory can build up, slowing down liquidity and product turnover.
• In fast-growing industries, excess inventory can become obsolete quickly. This method requires frequent adjustments, causing costs and increasing prices.

4.2. An example of production and warehousing

Make-to-stock is often used in industries with stable or predictable product demand.

For example, confectionery manufacturing businesses often plan to produce more during the holidays. Products will be produced and temporarily stored, waiting for the right time to be released.

5. Criteria for choosing the type of production suitable for the business

To choose the appropriate type of production, businesses need to consider factors such as product type and market size. Small and medium-sized enterprises, especially in the service sector such as furniture manufacturing or tailored clothing, often favor on-demand production due to the unique characteristics of each product.

On the contrary, companies with large production scale and strong finances often choose mass production to optimize costs and reduce prices. This is especially suitable for standardized products such as soap powder, canned drinks or toothpaste. Each workshop in a mass production system is responsible for a specific stage of the production process.

Deciding on the appropriate type of production not only meets the needs and standards of the product but also creates a solid basis for businesses to improve productivity and achieve quick results. In the context of digital transformation, applying technology solutions to production management not only helps comprehensive monitoring but also optimizes costs and resources.

Thus, 1C Vietnam has introduced in detail and given examples the types of production in businesses in 2024. For businesses, deciding on the appropriate type of production is an important key to improving performance. and meet market needs. To optimize the process, 1C:Company Management software is the best choice. The software is specifically designed for manufacturing businesses, with many comprehensive production process management features. For more detailed information, please contact 1C Vietnam immediately for detailed advice.