logo
Kingsun & Top CNC Machining Service supplier from China
Ultimate Guide to CNC Machining
Plastic Machining *
Metal Machining *
Ultimate Guide to CNC Machining Surface Finish

Unlocking the Secrets of High-Mix Low-Volume Manufacturing

Unlocking the Secrets of High-Mix Low-Volume Manufacturing
Facebook
Twitter
Reddit
LinkedIn

Organizations that produce a high variety of products in limited quantities, also called HMLV (High Mix Low Volume) manufacturing, are a growing segment that gives modern industry the answer to the ever-increasing problem of fierce competition and inefficient short production runs of customized products. As industries appreciate high production economies, customers are shifting towards high levels of customization to meet their various specifications; HMLV manufacturing strategies play a significant role in keeping production costs reasonable and flexible enough for the existing market. The current blog aims to investigate the background of HMLV production, its characteristics, and the incredible possibilities of HMLV production through the development of technologies with rapid prototyping. These are the points that the readers will understand as to why HMLV manufacturing differs from conventional manufacturing systems and why the importance of manufacturing is positioned on the increase.

What is High-Mix Low-Volume Manufacturing?

What is High-Mix Low-Volume Manufacturing?
image source:https://www.fastems.com/high-mix-low-volume-automation/

High-mix low-volume (HMLV) manufacturing is a production setting that consists of a wide variety of goods (high mix) with only a small number of each item (low volume). It is the style of manufacturing that serves industries that can respond rapidly to the needs of the markets and require more advanced customization. In contrast to mass production, which is concerned with producing vast quantities of a single product, HMLV manufacturing is characterized by the need for flexibility in the design and production processes to compact variable order quantities and changeovers. Such flexibility is necessary for industries like aerospace, automobile, and electronic industries where clients are used to commission particular products or variations of product lines. Since companies strive to satisfy the tastes of individual customers without losing their competitive edge, the use of HMLV manufacturing models becomes unavoidable. This blog will deal with HMLV manufacturing and understanding its value. It will investigate the problems of its implementation and the means of its mitigation.

Defining HMLV Production

High-mix low-volume (HMLV) production involves making several different products in smaller quantities, catering to individual customers. Rather than mass production, which seeks economies of scale, HMLV prioritizes flexibility and accuracy. Critical components include adjustable production systems, fast turnover of processes, and versatile management of employees to meet different market demands. In the case of HMLV production, the motivation is to make products more complex and bulky and improve turnaround time and cost without compromising standards.

Key Characteristics of Low-Volume Manufacturing

Low-volume manufacturing practices allow for more efficiency, accuracy, and quickness during manufacturing. One of its main features is the quick responsiveness to the changes in product design and the production of a large assortment of goods with minimal idle time thanks to modular systems and techniques of quick changeover. Technologies such as 3D printing and CNC machining are also fundamental, as they allow for high-precision work at lower volumes on customizable parts. In addition, low-volume manufacturing most often works on lean principles to cut inventory holding costs and reduce waste, employing production methods like Just in Time (JIT). In such environments, the workforce is often trained to perform various tasks to increase flexibility and responsiveness to market requirements.

Understanding High-Mix in Manufacturing

High-mix manufacturing is a technique of production in which companies manufacture a plethora of products but in small amounts. This approach applies advanced scheduling and materials management in response to various product attributes and frequent market fluctuations. High-mix production specializes in adopting a multiple-product selling strategy that entails flexibility to change from one type of product to another with minimum idle time of production lines. Flexibility in the systems is facilitated by the use of flexible machines and adjustable workforce policies, which help the producers retain complications from extensive customization. The main problems are variability in product lines, leading to supply chain complexity and maintaining quality across these numerous product ranges. Further, successful high-mix production is expected to contribute positively to customers through improved product offerings even as the business remains agile.

How Does High-Mix Low-Volume Compare to High-Volume Manufacturing?

How Does High-Mix Low-Volume Compare to High-Volume Manufacturing?
image source:https://medium.com/@LeanSixSigmaUniversity/lean-in-high-mix-low-volume-hmlv-manufacturing-does-it-work-ddcfbeb36884

Differences in Production Method

The processes in high-mix, low-volume (HMLV) production are designed to provide basic flexibility and adaptability. This requires, among other things, the installation of manufacturing equipment that enables quick changes in production processes for a range of products  and smaller quantities of such products. Therefore, such HMLV environments often use universal machines and complex software for fast production, switching from one item to another. However, in high-volume manufacturing, the focus is on optimum efficiency and bi-lateral consistency instead of flexibility. Dedicated production lines for mass production of similarly designed goods like this are known to take advantage of scale economies. This is an approach that utilizes automated and special production machinery to achieve maximum profitability through fast and low production costs per unit. For this reason, efforts in the mass production of goods that fit into the high-volume class are not cost-effective for changes in demand.

Comparative Analysis of Production Volumes

When considering production volumes for high mix low volume (HMLV) and high volume manufacturing, some salient differences can be noted according to the leading industry sources. This HMLV manufacturing process is characterized by producing many different kinds of products in small volumes and is thus helpful in situations where the market demand and customer needs are dynamic and complex. However, it is labor-intensive and utilizes both flexible tools and machinery to contain the intricacies of different production designs. High-volume manufacturing integrates more efficiency in the bulk production of the same products, thanks to decreasing costs as more units are produced. This is done at the cost of implementing automated procedures and explicit machines, which assist in fast and repeated production. This is appropriate for stable market conditions where future demand patterns are known and predictable. At the same time, HMLV provides the flexibility necessary for more personalization and quicker pacing of the order fulfillment process, but usually at a higher cost per unit. This explains why every firm should carefully evaluate the tradeoffs of each of these methods, especially in terms of market needs, product diversification, and budget.

Impact on Supply Chain Management

High-mix, low-volume (HMLV), and high-volume manufacturing contain inherent differences in production processes that affect and frame their manufacturing supply chain management strategies. In HMLV environments, the strategy of a supply chain has to be agile enough and responsive to be able to cope with different types of product lines and fast changes in demand, which is why there is usually a close interaction between the company and suppliers as well as sophisticated demand planning technologies to reduce time delays. However, high-volume manufacturing relies more on adopting a straightforward approach to the supply chain, whereby the focus is on cost cuts through bulk buying and just-in-time inventory systems to support uninterrupted production schedules. Despite the differences, both require relevant logistic approaches to achieve the maximum performance. HMLV logistic solutions are flexible and dynamic in this case, while high-volume types are cost-centric and static.

What are the Benefits of High-Mix Low-Volume Manufacturing?

What are the Benefits of High-Mix Low-Volume Manufacturing?
image source:https://www.fastems.com/high-mix-low-volume-automation/

Advantages of Flexible Production

Flexibly mechanized production systems have several benefits, which are primarily seen in current manufacturing systems. First, they improve the firm’s responsiveness since they can quickly respond to changes in customer preference and market trends. This response flexibility is facilitated by advanced automation technology and modular machinery, which supports the quick changeover of the production lines with little or no idle time.

Further, mass customization of products under flexible production does not adversely affect efficiency. Manufacturers can escape low volume, and high diversity production runs with intelligent process control and monitoring software. Another significant benefit is reducing risk by offering various products, thus minimizing reliance on one category that bears the weight of market risks.

Concerning the technical aspects, security is guaranteed by the optimal solution of geospatial production line arrangement aided by the application of virtual twins and simulation systems. They expect improvement in operational metrics, including short lead times, high throughput, and first pass yield, to worsen in the flexible production setting. This improvement in performance makes sense as there is a possibility of process modeling and design stage repetition before any physical movement takes place, leading to an increase in accuracy level and reduction in waste.

Reducing Lead Time with HMLV

High Mix Low Volume (HMLV) approaches have been helpful in shortening process lead times due to their potential flexibility and agility. One of the working plans is the proactive scheduling and control of inventory systems. For low-volume production systems, this alignment of production with customer demand is achieved by implementing short production lead times in HMLV manufacturing.

Moreover, another essential feature is implementing a modular production approach that allows quick changeover and coping with the different processes at hand. An increasing number of these systems combine machine learning with the timely analysis of data, which assists in operationalizing practices by predicting outcomes based on available data. These rigid innovations improve technical indexes like cycle time and machine utilization, which will, in turn, reduce the time to deliver goods and increase throughput. Also, some optimization tools work in conjunction with the digital approach to the production process in the manufacturing industry. With the help of these tools, they can test all production options, and only the best ones are forwarded for execution, especially where quick turnaround times are anticipated.

Innovation in Niche Markets

In certain market sectors, modifying products and services and constructing unique ones is common, drawing from another isolated market because of the high specificity outside of substitutes. The top three search results on any search engine site suggest these strategies: technology use, quick adoption of the system development cycle, use of advanced development strategies, and close interaction with customers.

  1. Adoption of Technology Analyzes: On the increasing volume and operational purposes in the manufacturing processes, particularly high mix low volume stand out as follows.: In most cases, companies tend to diversify their products by embedding advanced features like artificial intelligence (AI) and the Internet of Things (IoT) in them. These technologies are excellent in allowing and supporting differentiation strategies. These include the growing need for increased capacity and high speed in information processing and increased speed in transmission of information as these make possible informed decisions.
  2. Agile Development Practices: Various agile principles and practices help to promote an innovative mindset among target insights in specific market areas. If new products experience modification due to the customers’ changing needs, the company collects and employs new ideas generated by the clients and aims to respond to the changing market needs, which is common in high-mix, low-volume settings. This element minimizes the lead time in bringing new products into the market. And efficient Responsive-At the-Edge.
  3. Customer-Centric Design: Direct engagement with primary users, in this case, end customers, can help generate creative solutions for a given problem. Companies are improving as the approach is based on customer feedback to make gradual refinements. These may include technical modifications such as access improvements and aesthetically enriched contour changes that aim to provide ready satisfaction to the end user.

These strategies bring new strategies and even more changes to the organization since they are well supported by current technology and market trends, enabling companies to break new innovative paths in those niche markets effectively.

How to Optimize High-Mix Low-Volume Production Processes?

How to Optimize High-Mix Low-Volume Production Processes?
image source:https://www.amper.xyz/post/5-ways-to-improve-high-mix-low-volume-manufacturing

Implementing Lean Manufacturing Techniques

To effectively incorporate lean manufacturing principles in high-mix, low-volume production processes, corporate waste, workflow processes, and flexibility must be emphasized. Key strategies include the application of lean principles and a safe focus on lower-volume production to improve efficiency.

  1. Value Stream Mapping: This involves a review of all the activities that go into the production of a product in order to seek waste and inefficiencies. This is useful in knowing what aspects management should target in order to bring about change in manufacturing operations.
  2. Just-In-Time (JIT) Production: Choose neither to keep nor to produce components or products until absolutely necessary to reduce inventory levels. This is constructive in preserving wastage and in avoiding the waste of resources.
  3. Cellular Manufacturing In lean manufacturing, Small production areas that accommodate one assembly unit per workstation are used. This achieves proper workflow since minimal time is spent during movement and setting up. It also inspires fast responses to fluctuations in the product’s demand pattern.
  4. Multiskilled Workforce: Employees should be competent in performing more than one role within the production cycle. This enhances this organization’s versatility in its operations and also ensures there is somewhat sustained productivity even when actual production schedules vary from planned ones.
  5. Continuous improvement (Kaizen) is extremely important in enhancing processes in high mix low volume manufacturing: Squelch A continuous improvement culture is created where employees are empowered to find problem areas and remedy the situation. Processes and outcomes should be controlled periodically in order to continue making efficiency improvements.

By utilizing such practices, companies can respond to the challenges posed in high-mix, low-volume production and help increase productivity, quality, and customer satisfaction.

Utilizing Flexible Automation

Flexibility in the industry implies flexibility in applying such systems, which can easily be modified to suit any task and accept changes in production requirements. This enables the process to shift between different types of products in production without incurring huge idle downtimes or expensive changes in equipment. With flexible automation, organizations will respond promptly to changing product demand levels and increase their capability to introduce new products without interruption, especially in high-mix situations. This is particularly useful in a high-mix, low-volume production setting where many products and customization are required for the production activities to be productive. Because of this, flexible automation improves workflow efficiency and stabilizes product quality.

Managing Inventory Effectively

Inventory management aims to balance supply and demand through the conscious effort to reduce inventory holding costs. Planning methods encompass:

  1. Just In Time (JIT) – Inventory: With these systems, it becomes feasible for a company to plan production by demand, which helps eliminate unnecessary inventories. This technique will save overhead costs and minimize vices only if there is a proper supply chain.
  2. ABC analysis Inventory is categorized based on its degree in the system, its advancement, membership A, B, and C, and management resources directed to the ABC inventory system from a lean perspective. ‘A’ class of these items is very important and should be more watched while the ‘C’ class less restrictions are imposed.
  3. Inventory Management Software: Investment in good inventory management systems enables instant visibility to existing levels and patterns and future stock demands. That helps in scheduling orders on time with the right amount of goods, which is necessary for overall stock management.

More such strategies provide an efficient company with the ability to manage its resources and use the available resources effectively, cut down on costs, and improve the company’s ability to satisfy its clients, improving the business’s performance.

What Challenges Do High-Mix Low-Volume Manufacturers Face?

What Challenges Do High-Mix Low-Volume Manufacturers Face?

Addressing Production Line Complexity

It is possible that the high-mix, low-volume manufacturers have unique complexities in their production lines that might be detrimental to their efficiency. The complexity is caused by the interruptions caused by various product changes, which may lead to prolonged setup time and increased errors. On the other hand, operational flexibility is very important and sometimes may necessitate complex scheduling and resource allocation to allow for multiple product variations while maintaining the expected quality. More so, there is a need to have a workforce that can be flexible to different types of manufacturing processes. Incorporating modern technology solutions such as robotics and automation would bring the necessary flexibility to minimize the changeover time while still keeping the productivity levels higher against the overall complexity of the manufacturing processes.

Balancing Production Environment Flexibility

To achieve cohesive flexibility in a production environment, it remains critical for high-mix volume manufacturers to adopt flexible manufacturing strategies that embody lean concepts. Due to this, Scott et al. (2010) assert that lean manufacturing practices can change the organizational setup without technological investments. With lean principles in high regard, waste reduction is achieved simultaneously, putting the total production style in motion, which aids in flexibility without suffering from the effects of wastage. It is also conducive to performing changes in product configuration promptly and with less time loss by applying modular design and production policy. Furthermore, implementing advanced manufacturing technology components, including digital twins and intelligent factory systems, improves the ability to monitor and analyze processes in real-time, which means faster ownership and more effective responsiveness to changes in production. Furthermore, the organizational state guarantees that employees practice the principles of Kaizen and that their productivity can meet different lean manufacturing requirements. These approaches enable manufacturers to find the right efficiency in operating the factory even in changing environments within and outside the organization.

Overcoming Supply Chain Disruptions

To thoroughly mitigate the impact of supply chain disruptions, one strategy that manufacturers can capitalize on is the combination of resilience with visibility across their operations. With advanced technology, it is also possible to perform predictive analytics, and thus, it foreshadows challenges that may arise. Building close ties with many suppliers and searching for different channels lessens the chances of being over-reliant on one supplier. In addition, procurement of supply chain mapping and risk management tools provides clarity and insight in high-mix volume situations, making planning for contingencies easier and faster. In addition, incorporating advanced digital tools may prove to be instrumental in achieving the required levels of efficiency and even traceability of supply chain transactions, particularly in improving the overall resilience of the supply network. These strategies are essential in effectively managing today’s supply chains in an environment characterized by many uncertainties to guarantee that production does not stop for any reason.

Reference Sources

Inventory

Manufacturing

Lean manufacturing

Frequently Asked Questions (FAQs)

Frequently Asked Questions (FAQs)

Q: Which is high mix low volume (HMLV) manufacturing understood to be?

A: HMLV manufacturing determines the way of production whereby there is a wide variation in the product range though limited in quantity. This is a manufacturing high product mix low volume production system, which is quite unpopular with high volume manufacturing systems of the previous generations.

Q: How is Low-mix High-volume manufacturing not the same as HMLV Manufacturing?

A: While HMLV manufacturing is adequate for the diverse safety and safety-related merchandise at lower production volumes and hence costs, low-mix high-volume manufacturing is appropriate when high volumes and costs for a limited number of products are to be manufactured. This is developed in low-mix, high-volume, new optimal efficiency measures with low cost that also do not call for much change from mass production systems through much-dedicated assembly lines and automation.

Q: What drawbacks are running a facility in an HMLV environment said to have?

A: Many operations in an HMLV environment also present difficulties, such as numerous changeovers, complex stock management, higher costs per unit, and flexibility issues in manufacturing processes. These make it difficult to realize the same economies of scale associated with high-volume production.

Q: Can lean manufacturing principles be applied to HMLV manufacturing?

A: Yes, lean manufacturing principles can also be applied in HMLV. Although some of the activities may require some level of modification, concepts such as waste reduction, continuous improvement, and value stream mapping can still be effectively applied to promote efficiency in HMLV production environments.

Q: What types of industries typically use HMLV manufacturing?

A: HMLV manufacturing can be found in industries that require high customization or the production of specialized goods, such as aerospace, medical device manufacturing, industrial equipment, and unique electronics. These industries often face challenges from diverse products and customer requirements, thus making HMLV an ideal method of production.

Q: Where is automation in HMLV manufacturing?

A: Automation is usually challenging to incorporate in HMLV manufacturing because of the high product variety and numerous changeovers. However, productivity-enhancing technologies such as collaborative robots and programmable equipment with built-in flexibility can be embedded, enabling versatile production processes to be maintained.

Q: What can be taken to enhance the productivity of low-volume production?

A: Efficiency in low-volume production can be improved by manufacturers emphasizing fast changeover methods, designing the products in modular forms, training employees to be more flexible, and using various digital technologies to enhance the planning and scheduling of the production processes. For example, involving cellular manufacturing layouts will help achieve a faster workflow in an HMLV setting.

Q: What aspects of inventory management in HMLV manufacturing are absent in high-volume manufacturing?

A: Inventory management and forecasting techniques are more complicated in HMLV environments than in high-volume manufacturing due to production and management concerns. HMLV manufacturers need to hold a broader range of materials and components to fulfill different product requirements while still trying to limit unnecessary stock.

Q: What is the role of customization in HMLV manufacturing?

A: Customization is usually an essential factor in HMLV manufacturing. Manufacturers’ capacity to produce items in small quantities enables them to provide more precise product solutions to customers. This level of customization can constitute a competitive edge but implies effective procedures to deal with the diversity of product characteristics.

Q: How do companies move from low-mix high-volume to high-mix low-volume manufacturing?

A: Switching from low-mix, high-volume manufacturing to high-mix, low-volume manufacturing calls for a complete overhaul of the production strategy. In such situations, high-mix low-volume manufacturers need to invest in flexible manufacturing technology, a multi-skilled workforce, agile planning systems, and possibly redesign their products to be easier to customize. When setting up high-mix low-volume manufacturing, it is also equally important to rethink inventory management and supply chain partnerships to enable the new manufacturing strategy.

Main Products
Recently Posted
Blog Categories
logo
King Sun Precision Products Co., Ltd.

Kingsun offers outstanding Precision CNC Milling, CNC Turning, Swiss Turning, 3D Printing Rapid Prototyping services for the automotive and medical industries. Also, providing cost-effective high-quality custom services. Make your product work by collaborating with Kingsun!

Scroll to Top
Get in touch with Kingsun company

Kindly complete the form below to reach out to us. We aim to get back to you within 12 hours. Best of luck!

Contact Form Demo