- September 13, 2024
High-mix low-volume manufacturing is a unique production strategy that is enhancing the dynamics of the manufacturing industry. Its focus on concepts like custom manufacturing and product personalization makes it increasingly popular among modern manufacturing enterprises.
This article discusses what HMLV manufacturing is, its benefits, and the reasons why manufacturers opt for this model.
What is High-Mix Low-Volume Manufacturing?
High-mix low-volume manufacturing is a production approach where a company manufactures a wide variety of products in small quantities. It differs from the traditional mass production model, where a small number of products are manufactured in large quantities. Consequently, there is a lot of fast-paced activity in businesses following this model due to the variety in the pool of products, client expectations, and production requirements.
HMLV manufacturing presents unique benefits and challenges regarding production management, business agility, and profit-making, which we will discuss in this article.
Key Characteristics of HMLV Manufacturing
HMLV manufacturing has a few defining characteristics that give it its distinct identity as a production strategy.
High Mix
A diverse product mix is one of the key characteristics of low-volume high-mix production. This means that the manufacturer produces several different products in their facility. These may be completely different products or different variants of one product, but each piece is unique in terms of design features and manufacturing requirements.
For example, an automotive manufacturer following the HMLV model can offer its customers different body interior designs to choose from. Although the raw material and manufacturing equipment may be the same, each product would be different and require special attention.
Low Volume
Another key feature of high-mix low-volume manufacturing is low-volume production. This means that while the product mix is diverse, these products are not manufactured in large quantities. Most products are tailored to meet the specific requirements of a niche market or a specific customer.
Customization of Products
One of the defining characteristics of an HMLV manufacturing company is its capabilities in product customization. These companies usually specialize in providing products with unique features that may not be in high demand but are useful to a specific group of consumers.
For example, orthopedic implants generally do not come in a standard form. While the main design features may be similar, several adjustments are necessary to ensure an effective and painless experience for each patient. Therefore, customization across all steps of the product development process is key in high-mix low-volume manufacturing.
Flexibility and Adaptability
HMLV manufacturing requires a company to be very flexible in its operations. Due to the high product mix, there is a lack of standardization and consistent change in production operations. Most of the time, several projects may also run in parallel. Since there are multiple clients, each of whom expects undivided attention, simultaneously managing this also requires adaptability.
Therefore, the management structure of HMLV companies is such that it supports such shifts in production requirements while maintaining efficiency in business operations.
Benefits of High-Mix Low-Volume Manufacturing
By now, we understand what is high-mix low-volume manufacturing. Now, let us discuss the benefits of high-mix low-volume manufacturing.
Proactive Approach
A major benefit of high-mix low-volume manufacturing is that it allows companies to be agile and proactive in their business decision-making. The ability to rapidly switch between different products and processes enables faster turnaround times in production and reduces risk.
Moreover, companies can offer shorter lead times to customers, improving customer satisfaction. This proactivity also promotes a positive work environment and boosts employee morale. This in turn further drives productivity.
Innovation
Innovation is another core characteristic of low-volume high-mix production. HMLV environments often participate in all steps of product development, from prototype to production.
Due to the high product mix, the company’s workforce regularly works on innovation cycles of product development. This also leads to more opportunities to incorporate real-time feedback in their products.
Less Inventory
The cost of maintaining inventory is significantly less in HMLV manufacturing than in mass production. The main reason is that most production is just-in-time, where the small batch of each product leaves the premises as soon as it finishes, with no need to manufacture more units.
The concept of inventory is to have enough product units in storage to tackle events like surges in demand or market shortages. These events become irrelevant in the context of HMLV manufacturing where each product is unique to each customer.
Challenges in High-Mix Low-Volume Manufacturing
There are some limitations as well to adapting the HMLV manufacturing model.
Complex Scheduling and Planning
Flexibility and adaptability are among the benefits of high-mix low-volume manufacturing, but these benefits can become problematic if not managed properly. HMLV companies deal with numerous manufacturing orders simultaneously, which makes production planning a very complex task.
Imagine producing different amounts of numerous products, using different techniques, different machinery, and for different clients. There is a risk of mix-ups in manufacturing procedures and employee burnout, which can deteriorate quality and increase cycle times.
Quality Control Across Different Product Lines
Maintaining the same standards for quality control for all products is a significant challenge in HMLV manufacturing. Not only is there an additional burden of different quality definitions and equipment requirements for each new product but implementing quality control procedures can be hectic.
Generally, manufacturers perform quality checks both during and after production. With different designs under production, the quality team needs to be very vigilant and updated with the production schedule.
Lead Times vs. Variability
For a manufacturer, low lead times and high product variability are both desirable. Low lead times attract customers as they want their orders completed as early as possible. Variability (high mix) decreases business risk and enhances market reach.
However, for an HMLV manufacturing enterprise, balancing these two is often a challenge. While the high-mix aspect of manufacturing is attractive, taking on the responsibility of numerous projects means that more time is spent on designing, planning, and producing. This increases lead times.
Strategies for Efficient HMLV Operations
The previous sections highlighted the main challenges and benefits of high-mix low-volume manufacturing. Manufacturers have come up with various strategies to tackle production issues specific to HMLV manufacturing.
Lean Manufacturing
Lean manufacturing is an efficient production management philosophy for high-volume manufacturing environments. However, its principles can be adapted to a low-volume high-mix production setup with a little creativity and agility.
Let us discuss waste reduction, the cornerstone of a lean approach. Granted that there are not many units to produce in low-volume production runs, waste reduction is still possible. For example, production managers can study the transition process from one product to another see what causes the most waste, and tackle that. It can be excessive movement of employees, time wastage for fixture installations, or unnecessary paperwork.
Similarly, other lean manufacturing strategies like continuous improvement, value stream mapping, and lead time management can all be implemented in an HMLV manufacturing company with some planning.
Standardization
Standardization of production processes is difficult to practice in HMLV manufacturing. A production line with several products, tasks, and quality procedures is understandably not easy to standardize. However, despite this situation, standardization of production processes is a great tool for increasing efficiency.
By developing standard operating procedures (also known as SOPs) for menial or repetitive tasks, manufacturers can improve the quality of results and decrease the possibility of mistakes. In a high-mix low-volume manufacturing environment, these tasks may include changing dies, preparing documentation, and quality testing routines.
In an HMLV production line, the workflow through which a new product passes through is also a strong candidate for standardization. Production managers can streamline their work by defining personnel roles and responsibilities, as well as timelines for production tasks like design for manufacturing, CAM programming, manufacturing, and quality. This way, everyone knows what to do, who to report to, and how much time they must complete their work, boosting organizational efficiency.
Communication
Communication is key to efficient production operations, regardless of the manufacturing model. It is, however, even more critical in low-volume high-mix production environments due to the immense activity on production lines.
There is a wide range of problems that are avoidable with seamless communication between production team members. For example, an equipment breakdown on one of the production lines causes delays. In a high-mix environment, a lack of communication can be very damaging as multiple projects are at risk due to one machine malfunction. With quick communication, however, it is easy to minimize this delay, and the management can plan workarounds in time.
Multi-Skilled Workforce
A high-mix product low-volume manufacturing production line requires a wide skillset for efficient management. Managers, engineers, and workers need to make a lot of decisions in short time frames to meet deadlines.
For example, the line manager not only supervises the production activity, but might also pitch in during design meetings, contribute towards DFM analyses, and participate in quality procedures. That too, is for a variety of products simultaneously.
Therefore, in order to keep up with the speed and diversity of HMLV manufacturing, business owners try to hire a multi-skilled workforce. Additionally, arranging training sessions for employees is another strategy that is good for upskilling your workforce.
Use of Automation and Digital Tools
Smart manufacturing technologies are very useful for enhancing the efficiency and flexibility of HMLV operations.
Incorporating tracking technology to monitor the movement of products, for example, can help in planning and scheduling production. Similarly, manufacturers use automated guiding vehicles or robotic arms to accelerate the movement of equipment and products between production lines.
How Does HMLV Compare with LMHV Manufacturing?
HMLV manufacturing is a great production strategy, but it is not the only one. Let us present a brief comparison of High-Mix Low-Volume vs Low-Mix High-Volume manufacturing.
| Information | HMLV Manufacturing | LMHV Manufacturing |
| Product Variety | High | Low |
| Production Volume | Low | High |
| Flexibility in Operations | Production operations and teams are very flexible and switch between different projects frequently. | Manufacturing operations are relatively inflexible. Standardization is the focus and product changes are implemented at a slower pace. |
| Customization | Products are very customized and tailored to suit the exact needs of a small group of target consumers. | Products have a standard design with very little opportunity for personalization. |
| Lead Times | Lead times are high due to complex scheduling issues and multiple product variants. | Short lead times due to process optimization and standardization. |
| Cost Structure | High costs due to low production volumes prevent economies of scale. Moreover, each product variant demands additional work. | Low costs per unit because of bulk manufacturing, stable supply chain, and standard production operations. |
| Workforce | Multi-skilled, versatile workforce to manage different tasks in a fast-paced environment. | Labor tasks are less varied and more repetitive. Therefore, the workforce does not need to be highly dynamic. |
It is clear that both production strategies have their pros and cons. It is up to the investors to decide what markets they aim to target and how they want to build their brand.
Applications of HMLV for Various Industries
Low-volume high-mix production is a great manufacturing model, but it does not fit well in all industries. Here are some industries where adapting HMLV manufacturing is a good idea.
Automotive
The luxury automotive market is a great example of the HMLV model. Customers demand vehicles with personalized specifications in engines, body shape, paint color, decorative features, and dashboard options, which makes each product unique.
Medical and Dental Implants
Medical implants need to be personalized for each patient for maximum comfort. Products like dental crowns are patient-specific, so there is mostly only one unit per customer (low volume). However, due to many people having different types of dental problems, a dental crown manufacturer still produces thousands of units (high mix).
Aerospace
There are various customizable systems in aviation products that make it a low-volume high-mix production industry. For example, an Unmanned Aerial Vehicle (UAV) has multiple purposes like surveillance, military, research, recreation, etc. Each of these requires small changes in the main design, creating an opportunity to practice HMLV manufacturing.
Automation and Robotics
Robotic arms are used for a variety of purposes like pick-and-place, welding, machining, etc. For each application, the robotic arm’s end actuator is different. For pick-and-place, it is a gripper with specific dimensions and strength. Thus, each customer is likely to have a special demand for their robotic arm design but will not buy a huge number of units.
WayKen’s Custom HMLV Manufacturing for Your Projects
WayKen offers comprehensive machining capabilities, including CNC machining, vacuum casting, 3D printing, and rapid injection molding, for your HMLV projects. HMLV allows for producing a variety of parts in small batches, making it perfect for industries needing unique, customized solutions. WayKen’s approach focuses on quick turnaround times, high-quality results, and the ability to handle complex designs with ease. By combining advanced technologies and a highly skilled team, we ensure that each project, no matter how complex or simple, is completed to high standards, meeting the specific needs of your business.
Conclusion
HLMV manufacturing is a highly efficient production strategy with a unique set of features, benefits, and challenges. It is a suitable strategy for manufacturers dealing with a diverse product mix in low-volume markets.
FAQs
Is HMLV suitable for prototyping?
HMLV manufacturing is perfect for prototyping as it involves rapid design changes and small production batches, which is best done in a flexible production environment.
What kind of business model is HMLV manufacturing suitable for?
HMLV manufacturing is quite successful with small-to-medium scale enterprises. They are generally more flexible and versatile and have a business need to diversify their product range to manage risk.
What role does technology play in HMLV manufacturing?
Technology is vital to the success of HMLV manufacturing operations. It is useful in streamlining communication between employees, improving quality and efficiency.
