November 21, 2023
On-demand manufacturing, also called manufacturing on-demand and just-in-time (JIT) manufacturing, is a type of production in which goods are made only when there is a demand and in pre-decided quantities. Ideal for small volumes, the process is geared towards high customisation of products for consumers.
A fast-evolving manufacturing landscape – triggered by economic headwinds, technological and logistical progress, and changes in consumer preferences – makes on-demand manufacturing more resilient to difficult situations and disruptions than traditional manufacturing.
JIT manufacturing is said to have originated in Japan in the 1950s and 1960s when the Toyota company developed it as a way to improve efficiency and reduce waste in the production process. Toyota’s success inspired other companies to take up similar initiatives.
There are many reasons why on-demand manufacturing is favoured over traditional manufacturing. Here are some:
In the digital age, on-demand manufacturing has ushered in a new era of transparency in the supply chain, effectively mitigating risks tied to product failure, recalls, and potential damage to a brand's reputation. As a result, manufacturers, suppliers, and retailers are eagerly adopting tools and systems that reinforce their commitment to building a transparent and sustainable supply chain.
Sustainability is at the forefront of the modern industrial landscape, with companies facing increased scrutiny over their environmental impact. Traditional manufacturing methods are resource-intensive, involving significant labor, energy, and raw materials. In contrast, on-demand manufacturing champions sustainability by optimizing the use of these valuable resources.
Data Analytics plays a pivotal role in this transformation too. The rise of technology-driven factories has generated a wealth of data, which is meticulously analyzed. This data-driven approach aids in predicting demand, optimizing production cycles, minimizing potential wastage, addressing production issues, and strategically planning product development. With Industry 4.0 now a reality, traditional manufacturers are recognizing the urgent need to catch up and embrace these technological advancements.
For several industries, the shift to an on-demand ecosystem is inevitable for survival and growth. Aerospace, healthcare, automotive, fashion, and defence industries have adopted latest manufacturing techniques to deliver complex, precise, and customised parts on-demand and in low volumes.
Aerospace: The aerospace industry is at the forefront of innovation and new technologies. It requires high performing, durable, plastic and metal parts with tight tolerances for aircrafts and space shuttles where safety is of utmost concern. That explains its extensive use of 3D manufacturing, CNC machining, and sheet metal fabrication.
Healthcare: The medical and healthcare industries have to respond to major challenges often on a war footing. It needs to research, innovate, and create new, high accuracy, and safe tools to improve medical technologies. Rising to the challenge, CNC machining, 3D printing, and injection molding help innovators accelerate the product-development journey from prototyping to final production.
Automotive: These are interesting times for manufacturers and industry suppliers as digitisation, automated driving, a shift to EV, and shared mobility take hold. Innovation is the key to gain a competitive advantage in the auto sector. With the introduction of technologies like 3D printing and IoT, designing, building or improving a vehicle have undergone radical changes. A flexible manufacturing system, creating customised parts for greater satisfaction of customers and ensuring a steady supply of spare parts empowers an automaker to be in the race for a larger market share without sacrificing speed and quality.
Fashion: The fashion industry has been in the eye of the storm for causing 10% of GHG emissions, producing 20% of global wastewater, and consuming more energy than the aviation and shipping sectors put together. For the purpose of achieving sustainability, brands have resorted to on-demand manufacturing – or, made-to-order, in fashion parlance. They give a go-ahead to manufacturers only after customers have placed the order. This, of course, is applicable to high-cost items.
Major fashion brands are experimenting with advanced 3D printing technology to create unique designs, shapes and geometries, build prototypes and reduce production waste. Moreover, knit innovations like 3-D knitting, semi-automated sewing, and automated logistics are cutting down on labour-intensive work, enabling greater customization, and improving reliability.
Defence: The sector leverages 3D printing, CNC machining, injection molding, and sheet metal fabrication to create standard and distinctive parts and assemblies for defence applications. The industry stands to gain from cost reduction on the production of tools and parts with tight tolerances, design enhancements, shorter time to reach the end-user, and increased technical and commercial competitiveness.
On-demand manufacturing calls for modernization of manufacturing industries in view of the sweeping changes activated by digitization, increasing automation, and new business models. It’s not just the big daddies of the business world who have changed course; even start-ups and small and medium-sized enterprises (SMEs) use the on-demand model as part of their de-risking strategy.
In addition to the above-listed benefits of faster production, lower inventory and storage costs, rapid prototyping, and greater customisation, SMEs can avoid the back-and-forth cost assessment and estimation in the traditional model and use instant quote engines to offer product cost estimation. Sometimes all that the client needs to do is upload the 3D file; select the production process – be it 3D printing, CNC machining, sheet metal fabrication, or injection molding; place an order, and receive parts. The start-to-finish template provides regular status update, quality assurance, and delivery tracking.
Today, cloud-based computing applications have liberated small companies from investing in expensive software to address warehouse, shipping and resource management issues.
While on-demand works well for smaller scale manufacturing and production, it can also step up to the plate when demand and production volumes shoot up. For that, however, it is crucial to maintain production capacity, equipment, and a workforce that can handle big orders and at the same time maintain and deliver consistent quality.
This is the era of smart factories where technologies enable coordination of physical and digital processes within the establishment and across the manufacturing supply chain. Those processes range from material sourcing, logistics, production to delivery. The primary goals of smart, on-demand manufacturing are to improve operational performance and promptly respond to supply and demand fluctuations. The collaborations across departments, borders and industries, catalysed by digitisation, enhance designs and skills and help create an agile and flexible workforce.
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