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Home 9 Design Guide 9 Exploring On Demand Manufacturing: Process, Benefits & Uses

Exploring On Demand Manufacturing: Process, Benefits & Uses

Published on: 2023-03-03

Manufacturing is as old as civilization but manufacturing on demand is relatively a new concept. This model has quickly infiltrated various fields of practice and has even gone ahead to replace the traditional modes of production. Thus, to understand the concept of on-demand manufacturing, it is necessary to determine its features, the principles of its functioning, the benefits and drawbacks. This article focuses on demand manufacturing describing how on-demand manufacturing functions as well as comparing it with traditional manufacturing.

 

What is On-Demand Manufacturing?

On Demand Manufacturing

On demand manufacturing is a process of manufacturing products where products are produced only, when they are needed, often in small quantities. This model is also known as custom or cloud manufacturing and is not the same as the traditional manufacturing that takes place when products are produced and stored in anticipation of the market need.

The Mechanism of On-Demand Manufacturing

On-demand manufacturing is a production strategy that aims at producing goods that will meet a particular customer at a certain time. Manufacturing on demand is relatively different from conventional manufacturing where products are made in bulk and then stocked for sale, in on-demand manufacturing products are made and shipped as soon as an order is placed. It is based on the use of digital tools to control processes, prevent possible problems, and introduce improvements that are to be made permanently, without having extra inventory. This method is very essential in the current world of business where there is flexibility and the ability to order in small quantities is not mandatory.

The Workflow of Custom On Demand Manufacturing: A Case Study

An example of a business that can be classified under this category is a business that sells shoes that are made to order. 

  1. Order Placement: The consumer defines the specifications of the product they want in the market. Products can be purchased from the stores, or ordered by phone or through customization websites such as Kickflip. These tools assist the customers to have an idea about the appearance of the particular customized product they want hence placing an order. This feature assists in eliminating mistakes and ensuring that the customers are satisfied.  
  2. Quotation and Option Selection: The company then assesses the design that has been created by the customer and they then give the price depending on the material used, the design, and size. In a custom shoe business, when one is using a product configurator, one is in a position to give the price instantly and also change the price. According to the options chosen, the customer can observe the change in the price and then order the product on the website.  
  3. Manufacturing Process: After the order, the item goes through production with the use of technologies like 3D printing, CNC machining, injection molding, die casting, or urethane casting. For instance, in a custom t-shirt business direct to garment (DTG) printing is used. DTG entails the transfer of the design on the fabric and this makes the final product to be of high quality and also relatively durable.
  4. Quality Control and Shipping: The final product is checked to see if it has achieved the quality of the customer. After the above checks, it is packed and sent directly to the customer as it is ready to be used.

 

Emergence of On-Demand Manufacturing?

Several key developments have contributed to the rise of on demand manufacturing companies.

Advancements in Manufacturing Technology 

First, In the past, the manufacturing process was established on assembly line concepts that were not appropriate for customization or small-batch production. But with the improvement in technology like On-Demand Manufacturing and Rapid Prototyping, this approach has been greatly improved. These technologies are suitable for the development of small quantities and to meet client’s strict needs effectively. 

Evolving Logistics Networks 

E-commerce has also brought changes to the supply chain and transportation networks for the improvement of international and domestic transport. Improved supply chains and shortened time to delivery have in some way minimized the need for large-scale production hence allowing for production on order. 

Digital Manufacturing Techniques 

The issues in production are identified through the use of digital manufacturing tools, quality is enhanced and the needs of the users are met. These enhancements lead to better efficiency and customer satisfaction, and therefore on-demand production becomes more feasible and effective. 

Industry 4. 0 Innovations 

The onset of Industry 4.0 has further enhanced the on demand manufacturing concept. Cloud solutions and collaboration technologies enable one to manage processes and be prepared for changes, which is beneficial for on-demand strategies.  

Related To: Navigating the Future of Production: What is On-Demand Manufacturing?

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On-Demand Manufacturing vs. Traditional Manufacturing: Main Differences

There is always something that can be argued concerning the difference between on-demand and traditional production. The following is a comparison between the two strategies and the gaps that are likely to be found between them. 

  1. Flexibility 

The benefit that comes with on-demand manufacturing is that it enables organizations to manufacture goods when there is a need to manufacture them and in the necessary quantity. This model is especially appropriate when the production run is short and the company can produce the product with no extra cost of production. CNC machining and 3D printing are common in the rapid manufacturing of different parts and different designs that do not require frequent changes of tools. On the other side, traditional manufacturing is sometimes not considered optimal for small orders but rather suitable for large batch production.

  1. Customization 

On demand manufacturing also has the benefit of being able to work on distinct orders. This is especially useful in the health industry where products are expected to be made to measure the market. On-demand production suggests that specific and specific requirements can be fulfilled, unlike the traditional production systems that are difficult to satisfy the complex customization requirements. 

  1. Storage and Inventory Costs 

The on demand machining does not require the accumulation of the products since they are produced when they are required. It also does away with the cost that is incurred in holding stocks that the business is unable to sell. Traditional production however relies on economies of scale whereby large amounts are produced to make the cost per unit low. This approach calls for large warehouse space and has some risks associated with stocks, namely, loss resulting from a wrong forecast of demand. 

  1. SME Accessibility 

The conventional model of production is capital-intensive regarding structures, which hinders SMEs’ market entry. These are reduced by on-demand manufacturing because small operations can afford cheaper equipment and work with small production lots. It also breaks down manufacturing and provides the chance for SMEs to control and meet the demands and desires of the market conveniently. 

  1. Innovation and Technological Advancements 

On-demand manufacturing is considered to be innovative because it can produce a prototype and alter it at any time. Some of the factors that lead to the development of new products include; the relations between manufacturers and clients, cost and time effectiveness, and fast pace of product development. Designers can progress through the prototypes quicker and get the products to the consumer quicker. Manufacturing many items where more time is spent in setting up is not as effective as manufacturing a few items with less time spent in setting up.

Pros of On-Demand Machining Over the Conventional Manufacturing

On-demand machining has several advantages over traditional manufacturing. These advantages are to the manufacturer, the customer, the end user, and so on. The following are some of the advantages. 

Customization and low production volumes. 

End-users’ requirements are dissimilar, and therefore their desires and preferences are also different. On-demand manufacturing is a practice that enables manufacturers to provide customers with exactly what they need in terms of quantity and manufacturing specifications. The traditional model of manufacturing, on the contrary, makes it fairly impossible for a customer to request a particular product. This is because the layout in the traditional manufacturing facilities is rigid and any major alteration would be very expensive. Moreover, it would be unprofitable to produce a limited number of products with a conventional manufacturing system. 

On the other hand, with on-demand manufacturing, a customer can order even a single prototype of any design and difficulty and get it manufactured and shipped to him in a very short time. This kind of manufacturing is important in almost all fields, but especially in the medical field. 

Logistical Facilities

The conventional manufacturing process entails various logistics processes. Once a manufacturer has produced a large quantity of a product, they must have a complex and insured storage/inventory. This is in addition to a wide sales network for marketing and selling of the products. The manufacturer also has to supply, control, and sustain transport/logistics facilities. All these go a long way in exponentially raising manufacturing costs. 

Manufacturing on demand also helps in cutting down transportation expenses since there is no need to stock, insure, advertise, or distribute ready-made products. Someone may say that mass production in the conventional production system is economical since it reduces the cost of production through economies of scale. However, the on-demand model, which is very versatile, can accommodate one-off orders and production of thousands of items.  

Storage facility: Greater control of products and less wastage 

In traditional manufacturing, the quantity of products produced is based on an assumption or the market demand. This estimate is not without its errors and therefore the supply can easily outstrip the demand. Products that are stored are also at risk of damage, fluctuations in demand especially during certain times of the year, and other events that are beyond our control. An example is the coronavirus pandemic of 2020, where forced global lockdowns left some manufacturers with their goods. Situations like this lead to losses and produce waste which can be a threat to the environment. It is impossible to have supply greater than demand in the manufacturing on demand concept since supply is only produced when there is a demand for it. 

On-demand manufacturing also conserves a lot of resources that would have been used in producing goods that may not be consumed. Manufacturers can be assured that they will sell all the products manufactured because they can only produce products that have been sold.

Limitations of On-Demand Manufacturing

On-demand manufacturing is a feasible approach, even though it has certain drawbacks that should be taken into account. Here are some of the main drawbacks:

On-demand manufacturing is best suited for a context where a firm needs a few products such as in the early stages of a new product category or to meet a customer’s demand. However, it cannot meet the need to produce a high number of units in the shortest time possible. But, for sustaining the production rate at higher levels consistently, conventional techniques are more useful because of the reasons related to economies of scale. 

Intellectual Property Risks 

The next threat that is inherent to on-demand manufacturing is the threat of piracy of intellectual property. If they are not fully reliable, the detailed designs, blueprints, and CAD files that are provided to a manufacturing partner can be utilized by the service provider. 

Dependence on Supply Chains 

On-demand manufacturing is a process that heavily depends on the supply chain to be able to satisfy the customers’ demand. Contrary to the conventional manufacturing systems where inventory is stocked in large quantities to avoid any disruption of supply; the on-demand systems are prone to disruptions and shortages of supply; thus, the reliability of delivery is affected. 

Potential Quality Control Issues 

It’s important to note that at times the on-demand manufacturers may outsource the production to other third-party production facilities. This can be a problem of quality since the subcontractors may not possess the same quality as the original manufacturer, this may lead to some issues with the product such as defects or quality differences.

 

Different Techniques Applied in On-Demand Production

On-demand manufacturing has various technologies that are considered fundamental to the process. Below are some of the key methods:

CNC Machining

On Demand CNC Machining

Computer numerical control machining has been one of the primary technologies of manufacturing for many years and is essential for on-demand manufacturing due to its flexibility and precision. CNC machines come in two categories, horizontal and vertical and they are used in developing parts with exceptional precision. These machines are normally operated automatically, which makes the production process to be efficient. For this reason, they are ideal for developing components that are accurate and detailed in a production line when the need arises.  

3D Printing

On Demand 3D Printing

On-demand manufacturing especially in prototyping and short-run production, 3D printing also known as additive manufacturing is widely applicable. This technique is valued because it is cheap and it is possible to review the designs and make corrections before going to the production of large quantities. It allows for fast prototyping which means that designers and engineers can evaluate and design their products at very little cost.

Sheet Metal Fabrication

Sheet Metal Fabricated Parts

Sheet metalworking is a technique of producing useful parts from metal sheets. This process is widely applied in manufacturing parts such as brackets, panels, and enclosures for automotive, robotics, and aerospace uses. The common materials that are used are copper, aluminum, stainless steel, and zinc and the thickness is from 0. 006 to 0. 25 inches. This technique is quite special and effective for the manufacture of components that are used on demand. 

Injection Molding

Injection Molded Component

Injection molding is applied widely in large production volumes because it is fast and cheap. This technique entails the use of molds where the molten plastic is poured into a mold to create the intended shape and the part. Although it is cheaper when it comes to large-scale production, it is usually accompanied by less accuracy as compared to other techniques. Because of the high production rate of large volumes of parts, injection molding is suitable for extensive production.

 

Applications for On-demand Manufacturing Services

On-demand manufacturing becoming popular in different industries to incorporate on-demand manufacturing because it offers customized services. Let’s take a look at how various industries can benefit from this approach to flexible manufacturing: 

Automotive Industry 

In the automotive industry, the expensive parts and the inventory have made the manufacturers adopt on-demand production. This way they can reduce the costs of holding large stocks of inventories as parts are produced as they are demanded. 

Fashion and Textile Sector 

The fashion industry has a challenge of waste because of the ever-changing fashion and the four seasons. This issue is tackled by on-demand manufacturing because textile firms can produce products when there is a demand, and not before, thus eliminating wastage. 

E-Commerce 

For those firms that are in the e-commerce industry, on-demand manufacturing has become mandatory. It also assists the organizations in meeting the needs of the customers without necessarily having to stock the products. This model is advantageous in that there is no need to stock many products since they are produced as the orders come in. 

Robotics 

Robotics as a field is active and is recognized to experience high levels of technological change and advancement. This sector is most appropriate for on-demand manufacturing because it involves the production of small lots of customized components and parts because of the frequent changes and improvements. 

Healthcare 

In the healthcare industry, the timely delivery of the products is very crucial. The conventional methods of production fail to adequately meet the needs of an emergency. On-demand manufacturing eliminates this problem by ensuring that critical medical devices and parts are produced and shipped in as and when they are required. 

Aerospace Industry 

The aerospace components often have special requirements and the production is normally in small batches. This industry is ideal for on-demand manufacturing, which means that the company can produce high-quality and unique parts as and when required without having to store large stocks. 

These industries utilize on-demand manufacturing to enhance productivity, reduce cost, and meet particular needs which is a testimony to the efficiency of the model in different industries.

 

Conclusion

There is still traditional manufacturing, but more and more manufacturing is going to on-demand manufacturing which is a good thing and changing the manufacturing industry for the better. One of the companies that are already leading this revolution is Proleantech, which has great on-demand manufacturing services. 

Now, more than 2000 manufacturing companies work together through the Proleantech platform to get CNC machining, sheet metal work, injection molding, and on-demand 3D printing services. They also have more than 130 options of post-processing of the manufactured products which ensure variety and non-omission of the solutions offered. Contact us now, and get a quote for your on demand machining project.

 

FAQs

What are the Examples of On Demand Manufacturing?

Technologies such as 3D printing and CNC machining are typical examples of technologies commonly used in the on-demand manufacturing space.

What are the Examples of On Demand Manufacturing Companies?

Various manufacturing companies offer on-demand services. A good example is Prolean Manufacturing Company.

 

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