Low Volume Manufacturing is the process of outsourcing the production of their product to a foreign country. Singapore is a perfect example of a country full of leading and upcoming low volume manufacturing singapore manufacturers and suppliers who allow businesses like theirs to get started and gain footholds in foreign markets while keeping costs low.
Minimize the risk as much as possible
The difference between success and failure in business is often a matter of a few percentage points of market share, so it's crucial to understand how to decide where to put their money. When deciding where to invest, there are only two things one needs to know: where to invest and how much to invest. Everything else is noise. One can spend years studying a company's balance sheet or poring over its quarterly earnings reports. Still, none of it will tell whether the company is any good or should invest their money in low volume manufacturing singapore. But where to invest and how much money to invest are not the same thing. If one invests $100,000 in a company that turns out to be great, one has made a lot of money — $1 million, to be precise. But one will also risk a lot: one will give $10,000 to the company and get back $90,000.
Now suppose one invest $10,000 in a company that turns out to be awful. One will lose $10,000, but one will also get $10,000 back. It's easy to see the better deal, but it's less obvious that it's a decision between two things. To make a decision, one has to separate two things: the gain and the risk.
The gain is the amount one gets back. The risk is the amount one loses. If one wants to decide whether it's a good deal, one must compare the gain to the total risk. And that's hard. It's very hard. For any given a chance — say, 1 in 100 — the gain and the risk could be equal to each other, or they could be different by orders of magnitude. Most people aren't very good at separating gains from risks.
Perfect for tests and experiments
Low volume manufacturing (LVM) is a method for making identical goods. Each unit is made the same way, and each unit has the same properties.
One problem with mass production is that each machine used to make the product is different. Each machine makes a different part, and using the parts in a useful way requires a different machine.
With low volume manufacturing, each unit is made the same way, and every piece has the same properties. This means that the machine that makes one part also can make any other part. A second problem with mass production is that one can't easily make changes. Making small changes to a product requires making changes to all of the machines that make it. But with low volume manufacturing, making changes to a single part is all that's needed.
Finally, low-volume manufacturing is more efficient. There is always a trade-off between labor and energy, and with mass production, labor is cheap, but energy is expensive. With low volume manufacturing, labor is cheap and energy expensive, so energy is saved.