The manufacturing industry is evolving at an ever-increasing pace and is experiencing the inevitable shift from traditional production to on-demand production. This manufacturing technique has become a modern phenomenon that most companies use to produce small batches of their products. In many aspects, it replaces traditional production processes and overcomes the limitations of the traditional production model.
In this article you will learn everything you need to know about on-demand manufacturing, from its definition to its creation and the different technologies used in the product development process. We will also cover on-demand production applications to provide a complete overview.
What is on-demand manufacturing?
On-demand manufacturing is a system that allows manufacturers to produce products based on customer demand. The manufacturer produces a product in the required quantity and within a certain period of time. It is similar to cloud manufacturing or custom manufacturing. This production model is different from traditional manufacturing, which involves producing large quantities and storing them in warehouses.
The emergence of on-demand manufacturing
Thanks to the development of IT and logistics systems, most of the things we need are now available on demand. As a result, production has shifted from traditional production to on-demand production.
The Internet and cloud-based technology, products of Industry 4.0, are the main factors that influenced its emergence. These technologies help manufacturing partners develop advanced communications platforms that enable customers to upload design models for their projects and receive automatically generated DFM feedback and highly accurate quotes.
Furthermore, the cost-effectiveness of functional prototypes and end-use products with on-demand manufacturing technologies such as 3D printing and CNC machining is significantly contributing to the emergence and growth of on-demand manufacturing across the world.
On-demand manufacturing versus traditional manufacturing: what are the differences?
On-demand manufacturing and traditional manufacturing are often compared. Here's a look at the differences.
1. Flexibility
On-demand manufacturing gives companies the flexibility to place orders when needed and in the exact quantity needed. Therefore, companies can order a product on a small scale without increasing production costs.
Additionally, CNC machining, 3D printing, and other similar technologies help produce multiple parts and part variants faster without the need for machine adjustments or retooling. They allow economical production of small series. On the other hand, the traditional production model does not allow companies to order small quantities.
2. Personalization
On-demand manufacturing also allows customers to customize their orders regardless of the complexity of the specifications, an advantage that traditional manufacturing does not offer. Various industries such as the medical sector are adopting on-demand production as it requires customized manufacturing to meet diverse medical needs.
3. Storage and storage costs
On-demand manufacturing offers customers the advantage of producing exactly the quantity needed without storing excess product in a warehouse.
Traditional production is based on the principle of economies of scale, which means that parts are only profitable if they are produced in large quantities. As a result, companies are often attracted to ordering large quantities to achieve competitive prices.
However, businesses need warehousing facilities to store large amounts of inventory and accurately predict consumer demand. As a result, a company's profit margin can be negatively affected due to an order forecast that is too high.
4. Greater opportunities for small and medium-sized technologies
Due to the large number of products manufactured using the traditional process, the cost of installing a production unit is enormous. However, the on-demand model is a cost-effective process for handling small quantities that can be produced using less expensive equipment. Consequently, small and medium-sized companies can create small production facilities to adapt to new market needs.
5. Technological progress
Consistent interaction between on-demand production service providers and consumers, cost efficiency, operational transparency and short delivery times are characteristics of custom on-demand production that have driven innovation. Inventors and innovators can design and produce a single prototype quickly and at significantly lower costs.
Product manufacturers or designers often use this prototype to correct product deficiencies and thus reduce time to market. However, traditional production does not offer the capabilities of on-demand production. Therefore, traditional production contributes less to innovation than on-demand production.
Different processes in on-demand manufacturing
An extensive list of technologies are supported and commonly used in on-demand manufacturing. Some of these technologies are:
CNC processing
It has been around for a while and has influenced the progress of on-demand manufacturing with its enormous advantages. CNC technology works well with many materials and offers uncompromising precision.
Various CNC machines with horizontal or vertical machining centers produce high-precision parts upon request. Each of these machines has its specialization and design specification. They are typically automated, allowing for efficiency and faster production cycles.
3D printing
3D printing is a standard manufacturing technology used by product manufacturers and designers to produce small batches of products at the prototype stage. The process allows for cost-effective production and allows the manufacturer to test the functionality of a designed product before custom manufacturing it.
Sheet Metal Processing
In sheet metal processing technology, functional parts are made from a flat sheet of metal. This process is often used in the automotive industry to produce end products such as brackets, panels, housings and more on demand. This process is also widely used in other industries such as robotics and aerospace. Standard metals used in this process are copper, zinc, stainless steel and aluminum with thicknesses between 0.006 and 0.25 inches.
Injection molding
Injection molding is another standard manufacturing process suitable for high-volume production. This involves injecting plastic-based resin into a mold to create the desired shape of the part. Although injection molding is a cost-effective manufacturing technique, it has relatively low precision.
Benefits of On-Demand Manufacturing
1. Small batch production and customization
Customers often approach manufacturers with different needs and preferences. This method helps manufacturers to offer products according to the specifications and quantities desired by customers.
Traditional manufacturing facilities have a fixed hardware model, making it nearly impossible for customers to order customized products. Changing hardware in conventional manufacturing facilities is expensive. However, on-demand manufacturing can deliver a single prototype to customers regardless of its complexity. Therefore, small batch production and custom manufacturing are essential in many industries.
2. Economical production
Fast production times and small series orders help companies save on warehousing and logistics costs. These companies usually have minimal inventory. Therefore, they do not need to store excess processed products in warehouses. Whenever goods are manufactured, they are delivered directly to customers. It also reduces processing costs associated with eliminating excess inventory and waste.
3. Faster processing
On-demand production offers reliable overall turnaround time, and this is due to the single point of production and shorter quote and delivery times. On-demand manufacturers can receive and deliver orders within days because they can quote CAD models instantly. However, traditional manufacturers require several weeks or months to approve an offer.
4. Rapid Prototyping
One of the many benefits of on-demand manufacturing is rapid prototyping. When manufacturers produce on demand, it allows individual parts to be manufactured and delivered quickly and cost-effectively. Likewise, you can easily create variations of the same product because the technologies used do not require any reformulation. Rapid prototyping allows companies or business owners to take their ideas to market quickly to meet customer needs.
5. DFM Feedback
6. Encourages innovation
Various factors, such as low production costs, flexibility, relationships with customers and manufacturers, and reduced lead times, common in custom production, have significantly influenced the speed of technical innovation in various industries. Product designers and engineers today design products and have prototypes manufactured in hours or days at minimal cost.
7. Market Testing
Manufacturers benefit from on-demand manufacturing because they can take consumer feedback into account and make changes to the next production batch. Market testing continues to be a significant advantage, making it the ideal production process for consumer-focused companies.
Limitations of On-Demand Manufacturing
Although this production model offers enormous advantages, some disadvantages must also be taken into consideration. Here are some of them:
1. High production volumes cannot be achieved in a short time
On-demand manufacturing offers an ideal solution for small volume production, as is required when introducing new products. However, it cannot guarantee sustainable production when consumer demand increases. Therefore, traditional manufacturing is the best choice in these cases to reduce production costs and achieve better viability.
2. Intellectual property theft
Intellectual property theft is one of the most common disadvantages of on-demand manufacturing. This is because you need to provide the service provider with the model design, blueprint, and CAD files for your part. Therefore, there is a potential risk of intellectual property theft if you work with an untrustworthy service provider.
3. Dependence on the supply chain
Traditional manufacturers intentionally produce products in large quantities to avoid disruptions in the event of a supply chain crisis. On-demand manufacturing, on the other hand, relies on the supply chain to fulfill orders promised to customers. Therefore, if a supply chain disruption occurs, it will be difficult for manufacturers to deliver ordered products to customers, making them appear unreliable.
4. Quality Challenge
Some on-demand manufacturers finalize the details of a manufacturing project with a customer and then outsource the production phase to a small contract manufacturing company. This subsequently leads to significant quality defects in the product.
On-Demand Manufacturing Service Applications
Most global manufacturing industries now produce on demand as this offers optimization to their business. Here are some of the uses of on-demand manufacturing services:
1. Aerospace industry
The aerospace industry typically requires high-precision components with tighter tolerances and the manufacturing of components in small batches. However, on-demand manufacturing offers the best solution for these needs.
The aerospace industry benefits from a wide range of technologies, including 3D printing and CNC machining. Additionally, the aerospace industry uses on-demand manufacturing technology to save costs and quickly develop innovative designs. In-demand parts in the aerospace industry include wind tunnel and UAV components, spare parts and composite materials.
2. Automotive industry
Parts manufactured in the automotive industry tend to vary, requiring a shift to on-demand production. This change helps reduce production costs by avoiding the production of excess components. The automotive industry produces high-quality parts to test them in extreme environments and ensure they are safe for use.
To build more efficient vehicles, lightweight components must be manufactured on demand. Custom interiors, grilles and models made from elastomeric materials are examples of components manufactured on demand.
3. Health
Most products used in the healthcare sector require rapid order processing and requirements that traditional manufacturing cannot meet. Therefore, on-demand manufacturing replenishes the required product inventory. Parts are produced on demand, enabling innovative solutions for research institutions, doctors and patients.
The healthcare sector uses technologies such as urethane casting, injection molding and 3D printing with biocompatible materials to produce realistic models in small quantities. Examples of components that the healthcare industry produces on demand include medical carts, surgical instruments, and anatomical models.
4. Robotics industry
The robotics sector is still in its initial phase and is driven by the full force of innovation. Therefore, manufacturers cannot produce parts in large quantities as there are constant improvements and preferred technologies. On-demand manufacturing offers the ideal opportunity to meet the needs of these innovation-based areas.
5. Electronic Commerce
E-commerce is one of the leading sectors that has driven the growth of on-demand production in the manufacturing industry. Large companies with a significant customer base are adopting this model because it allows them to meet customer demand without needing to maintain a warehouse for each item they produce.
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Graduation
On-demand production is revolutionizing the manufacturing industry with increasing rates of innovation, making production flexible and affordable for businesses and individuals. It has become the preferred manufacturing technology that companies turn to when they need to produce parts in small quantities. Medium and large manufacturers now practice on-demand production as it offers efficiency to their businesses.
Common questions
What are common challenges in traditional manufacturing?
Longer production times, difficulty producing undercuts, thickness uniformity and draft angles are common challenges manufacturers face in traditional manufacturing processes.
What are the 3 types of manufacturing?
The three types of manufacturing methods include Make-to-Assemble (MTA), Make-to-Stock (MTS), and Make-to-Order (MTO).
Is traditional production expensive?
Traditional manufacturing uses processes that require the construction of molds, which increases the cost of processing the product. As a result, these methods involve huge investments in production, storage and logistics, which affects the final price.
