Advanced manufacturing is a flexible technique that produces products on demand, tailored to changing needs. It requires specialized training and is suitable for industries like computers and televisions. Layoffs can be avoided by shifting staff to other products. Some industries may find it difficult to adapt to this technique.
Advanced manufacturing is the process of mass-producing products on demand, using the latest technology to maintain efficiency. While most manufacturing processes can easily be performed by what has traditionally been referred to as “unskilled labour,” this higher level of manufacturing requires specialized training. Another name for advanced manufacturing is advanced planning and scheduling (APS).
Production is highly dependent on order volume. As demand increases, production must also increase to meet demand. In traditional manufacturing, the producer, wholesaler or retailer may rely on stored quantities to meet temporary fluctuations in demand. However, a large increase would require an increase in production by adding extra shifts, extra assembly lines or even opening new facilities. This allows the traditional producer to keep its overall operating schedule intact, but such changes are both costly and risky, as layoffs and plant shutdowns could be required if demand were to decline again.
Advanced manufacturing is a more flexible technique that can be specifically tailored to changing needs. Instead of accumulating orders to put products in stock for later sale, advanced manufacturing takes a different approach. Builds for immediate, or near-immediate, sale. This means that products in production are not months or years out of the box. Rather, they may only have days or weeks, depending on how far they have to travel to reach their final destinations.
While it may seem like this type of arrangement is more susceptible to personnel changes, there are ways to avoid layoffs. First, advanced manufacturing facilities are often suited to making more than one thing. Therefore, when demand slows down for one product, staff are shifted to manufacturing another. Secondly, the reliance on machines and electronics means that almost the same amount of staff is needed, whether they are busy or slow. Naturally, the greatest efficiency in any business is achieved when working at the highest production levels.
There are some industries which are very suitable for advanced manufacturing techniques. The computer and television industries are able to handle this type of production very well. Many computers are made to order, or at least built to order. This allows the client to have a little more input than it normally might have regarding hardware features and components. In other words, advanced manufacturing isn’t for everyone.
Other industries and products may be more difficult to adapt to an advanced manufacturing technique. Some things, like air conditioning units or ovens for example, require a significant amount of infrastructure and machinery specifically designed for the process. Therefore, finding something else to make with that machinery without significantly altering it, or the line, would be very difficult.
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