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On-Demand Manufacturing

On Demand Manufacturing

An Ultimate Guide to Understand On-Demand Manufacturing and Start Manufacturing Business from Scratch

We live in the technological era where everything is available on-demand. With the invention of the internet, we can see online movies, play online games, and hire a taxi online through Uber.

Remember when there was no internet, we buy or rent floppy discs for playing games or watching movies. Now, there is no need to buy physical copies of our entertainment because everything is available and stored online.

With this advancement in technology, company are shifting towards an on-demand version of their products or services they are introducing. One such example is on-demand manufacturing.

In this article, you will read all the details about on-demand parts and their advantages. To help you decide whether on-demand manufacturing is the right option for you, let us closely examine Manufacturing on Demand and its benefits.

What is on-demand manufacturing?

Produce as closely as possible to customer needs, reconciling personalization and the fight against waste. 

This concern is skyrocketing among brands. All the more so as production on demand reduces stocks and risks. Artificial intelligence also comes into play to try to produce only what will be sold.

Before defining deeply on-demand manufacturing, let us talk about traditional manufacturing that is now replaced with on-demand.

In traditional manufacturing, product developers search for partner manufacturers to make their products ready. Quotes are decided on phone or email because most of the manufacturers are located overseas. In traditional manufacturing,

Conception is long, and small orders (minimum quantities) cost more for small business startupss. Inventory cost is also included in on-demand manufacturing.

In traditional manufacturing, you have to wait for customers to buy your products. The main problem in this type of manufacturing is a large amount of wastage and dead stock.

On the other hand, Manufacturing on Demand (MOD), also called cloud manufacturing, is a new business trend. It is a manufacturing model where products are only made when or as they are required.

You do not send the order quantities to your manufacturers until the customers directly order the product. A customer orders a product, and you send your manufacturer about an order, and he prepares as per your customer's requirements.

This is helpful because you do not need to fill your inventory and wait for your product sales. In on-demand, you only pay for the item upfront.

In Manufacturing on Demand, buyers had to wait a little longer as the products are not available in the inventory. The manufacturer prepares the order on-demand.

A customer orders products, and you send the quote to your manufacturer. Once you receive your products from the manufacturer or the factory, you will directly send them to the customers. It means that there is no wastage.

You also have the option of sending products directly from the factory to the buyer. It is possible for large-scale and high-cost items to order products on a per-product basis from manufacturers.

In recent years, on-demand process is becoming more influential as product developers get a chance to see the economic trends before doubling down on inventory for a particular product.

On-demand manufacturing fashion

So far, bespoke production on an industrial scale has not been possible and therefore has not been profitable for most fashion brands. This situation has since changed. Many international startups like Xometry have been launched in recent years with this idea precisely, thanks to the new technologies available today.

Personalization is a big trend

Whereas the fashion industry previously considered the consumer goods point of view first and foremost, awareness is slowly gaining that the consumer with their increasingly difficult to foresee needs and wants must be placed at the center of all consideration. 

Personalization is a big trend that can now be better implemented with the help of digital technologies.

 All the major technology startup that have emerged from CAD development, such as:

  • Lectra 
  • Assyst

These are now working on industrial 4.0 solutions that make it possible to digitize and at least partially automate production, from design to sewing and cutting. . This allows the company to save time and human resources and guarantees profitable work.

2- Production Management 

Today's competitive conditions, increasing consumer goods and service prices, shorter delivery times, order manufacturing, and many other reasons lead businesses to improve their production processes. Businesses that can optimize their production processes in a correct and sustainable way to reach their goals faster.

Production Management enables enterprises to combine materials and manpower resources by using limited raw material to produce at the desired quality, at the requested time, at the lowest budget, and with the highest profitability.

Advantages of on-demand manufacturing

In recent years, there is an increase in on-demand manufacturing because customers get exactly what they want, and also a product developer gets exactly what he wants. This means there is no wastage, no dead stock, no excess inventory, a perfect production allocation, and a better profit margin.

There are many advantages to the on-demand production approach that is described below.

No Markdowns

Markdown occurs at the end of the season when a retailer checks its inventory. At the end of the season, there are many products of different colors and sizes, and styles that remain unsold throughout the season. And if these products are of no use in the next season, they will be a burden on inventory.

Many retailers offer discounts and promotions at the end of the season for this unsold stock and offer low prices. They do not want to keep it in reserve or on the selling floor to cover a lot of space. Soit, they offer sales to empty their inventory.

Through offers and sales, the profit margin gets lower, but they have no other choice.

On the other hand, if you choose Manufacturing on Demand, you can eliminate the risk of markdown. In the same way, you don't have to offer sales and promotions at the end of the season.

You will only manufacture your customer demands, which is a more easy and efficient way to save money.

Reduce Wastage

The major advantage of Manufacturing on Demand (MOD) is a reduction in wastage as you order those products to manufacturers that your customers demand and the number of products. So in this way, you have less wastage.

Not every consumer goods sell like hot cake, so traditional manufacturing will only burden your inventory with excessive and dead stock.

On-demand manufacturing does not require products to manufacture before time. Moreover, less wastage means there is more space in your stock and stores to keep popular products. This gives you a double benefit as you don't need to pay the stock cost, and you don't need to offer sales and promotions at the end of the season for excessive stock.

Quick Turnaround

In traditional manufacturing, if a business needs to manufacture its products, one must order earlier and then wait for 6 to 10 months to manufacture the products. Sometimes, the waiting duration became more prolonged if a project is complex, and you are ordering a large quantity.

The on-demand part is beneficial here to reduce lead times. When a customer places an order and further proceeds with your customer's demand, it will take only 1 to 10 days to manufacture that product from the moment the customer places an order.

It means that on-demand part production is more suitable for retailers in terms of lead times as it provides a quick turnaround.

Small Volume Manufacturing

Manufacturing on Demand (MOD) is useful for statup business as there is no limit to minimum order quantity (MOQ). The companies who are looking for prototype and short runs will get benefits through on-demand manufacturing. They can now get prototyping of small volume rather than traditional manufacturing where they have to order a bulk quantity.

It means that no order is small, and there are no minimum order quantity requirements. Manufacturing on Demand will find a manufacturer who is willing to complete this job, whether it's a hundred units or one.

This will work best for startups because they need small amounts of prototypes like 100 units. As the business grows and demands increase, they can continue with the same facility.

Better Cashflow

Businesses has to pay a lot of money on inventory management service. They need to keep stock of products in the stock. In return, they pay money for inventory, and also they need to hire a person for inventory management services.

On-demand manufacturing saves money that businesses spend on stock. The inventory cost can be utilized on other things like sales and marketing. Sales and marketing will increase sales revenue, and your business will grow.

Traditional manufacturing demands a bulk quantity of products, while on-demand manufacturing only manufactures products that buyer order. The cost of the part per unit in Manufacturing on Demand is high, but the margin is consistent.

On the other hand, in traditional manufacture, the cost per unit is low, but the profit margin is less than on-demand. When you have a stock, you have to offer sales and promotions at the end of the season. You offer discounts like 30, 40, 50 or even 70% discounts on different products. So, the profit margin on discounted items is also low.

Let's take an example of this.

If you are selling a jacket for $50 and the cost is $25, you are getting a $25 profit on each sale. On the other hand, if you have a stock at the end of the season, you offer discounts on jackets. Suppose you offer 30% off on each jacket. Now

Retail price ($50) x (30%) discount = $15 (discount on each jacket)

Retail price ($50) - discount ($15) = $35 (retail price after discount)

Now, if you calculate the profit margins after discount, the calculations will be:

Retail price ($35) - Cost = ($25) = ($10) profit margin

If you compare both examples, you will see that you will get a $25 margin on each sale if you manufacture products on-demand. On the other hand, you will not get a flat $25 discount on all sales in traditional business.

Hence, it proves that you can save money on inventory management services and use this money on marketing to grow your business.

Upfront Costs

The biggest advantage of Manufacturing on Demand is its upfront cost. Now everything is available online due to digital sales and marketing. For ant sectors like Designers, business people, and customers can now upload online design or project details to get to know about the upfront costs.

If you have experience hiring online taxi like uber, you will know the estimated rent of a taxi from your location to your final destination. Uber tells you to cost details before your travel and hiring. The manufacturers do the same now.

When a company submits its application (product lifecycle) for the upfront cost, the online tools tell all the details including assembling cost and total manufacturing time. This trend is now becoming more popular in the new business world. Now clients get instant quotes of their production process, and it is easy for them to view and choose the best and economical option.

Short Leadtime

We are lucky that we are living in this age where we have advanced technologies to tackle any situation. The main problems in manufacturing is its lead times. The manufacturer always finds ways to decrease lead time as it has a great effect on business.

If there is increased lead time in a business, it means loss of clients and loss of sales revenue. We should be thankful for additive manufacturing which has now decreased total production time.

With additive manufacturing technologies and a large number of the latest machines, Manufacturing on Demand (MOD) is now offering short lead times or even zero lead times.

3d manufacturing, rapid prototyping, CNC machining, and injection molding, all make short lead time in manufacturing.

Friction-Free prototyping

In traditional manufacturing, manufacturers reject small prototype orders or they charge a heavy cost for these prototypes. Some manufacturers do not offer a sampling service at all. On-demand manufacturing is a great option in this situation you can get an expert to support your production process.

Manufacturing on Demand makes it affordable, possible, and convenient for inventors to create rapid prototyping samples. Manufacturing on Demand (MOD) helps retailers to launch a new product out at an affordable cost.

Easy Sourcing and Material Management

On-demand manufacturing makes it convenient for you to source your parts for PCB. Many on-demand manufacturers offer full services in this regard. They offer a complete package from ordering to stock management, and sourcing all the parts need for PCB to shipment of other items.

It means now you need not worry about sourcing parts or inventory management or other items shipping. The manufacturer will do all this for you.

Vast Opportunities for Manufacturers

On-demand manufacturing is not only suitable for designers or businesses. It is also beneficial for manufacturers as they have less pressure on order fulfillment. Manufacturers face a lot of pressure for seasonal products as a result of wholesale ordering.

With Manufacturing on Demand, manufacturers can now observe and calculate the total process time to prepare items. They can also hire skilled workers for manufacturing rather than seasonal workers. In this way, it will practice a more reasonable and sustainable way of living for all parties.

Scale with one manufacturer

On-demand manufacturing offers a long-term relationship with the manufacturer as you can order small as well as large volumes. In traditional business, manufacturers have minimum order quantity requirements, so if you have to order different quantities, you need to work with different manufacturers.

Now with on-demand, whether you want 100 units or 100,000 units, the manufacturer will prepare for you by eliminating the need to onboard multiple manufacturers.

Start Business at once

One of the major difficulties in business is its start and introducing your product to the early adopter. In traditional manufacturing, you need a large capital to launch a product.

On-demand manufacturing lowers down the risk and makes it easy for you to introduce your parts at a low cost. Manufacturing on Demand (MOD) does not require a large stock of products so you can start your business with a range of 100 units only.

It means that you can start your business at once with your desired quantity and with demands. You can launch the product and see the feedback of the buyer and demand of the market to move further.

On-demand is based on an online instant ordering model, which allows you to build your customer network quickly to grow your business.

Greater Control on Business

Another benefit of on-demand Production Parts is it allows control over your business. and product. In wholesale manufacturing, the businesses have to shift their products as dead stock if market demands fall.

Through on-demand manufacturing, get to know which product is in high demand so they can order and manufacture those products. So company can now fill their stock with high-demand products. It saves companies from deadstock and saves money.

High-Quality Products

On-demand manufacturing provides high-quality products as manufacturers don't rush to complete large orders. The large volume orders put pressure on manufacturers to complete orders in order to lessen lead time.

On the other hand, in Manufacturing on Demand, buyer is well aware of the production time so manufacturers have enough time to ensure high-quality products.

Reasonable Prices

On-demand manufacturing does not require a large number of orders but that does not mean the cost will be high for small volumes. Manufacturing on Demand (MOD) allows vendors to use a process and combine small orders into large ones. This is the reason the prices become low for everyone.

Better Relationship with manufacturers

On-demand manufacturing allows you to develop a better relationship with manufacturers. With on-demand manufacturing, you can order higher-cost products with prior notice and you provide consistent orders to manufacturers.

It means that manufacturers do not need to hire seasonal workers to manufacture their products. They can hire skilled and permanent workers to complete consistent orders. It provides consistent sustenance, a more ethical hiring process, and less pressure of completing orders on seasonal demands.

NO Credit Risk

As discussed earlier, on-demand manufacturing does not require a heavy budget to start your business. So you have no credit risk while starting your business. You can order a single unit to 1000 units for manufacturing, so you can first test with a range of 1 unit to up to 100 units.

You can create a piece and upload it on your website to see clients' feedback and customer demands. You can show it to your friends to determine whether if it's valuable to invest more money and time in this product.

No-Hassle Prototyping

On-demand manufacturing companies always welcome you and your PCB prototyping to work on it quickly. You can then see how it looks, and how it works and you can make changes in design or parts of the product. You can do as many changes as you need to achieve perfection.

Order Fulfillment and shipping

The final step in the parts lifecycle is to ship a purchased item to the customer. Many manufacturers provide these services as well. They have a proper system to track that as soon as the customer places an order, it is packaged and sent to the customer.

This task done by manufacturers provides an obvious benefit to the business and saves shipping costs. Manufacturers have API to integrate with your e-commerce store to ensure timely delivery to the customers. Once the customer places an order, it is processed, picked, packed, and shipped to the customer.

The on-demand manufacturing industry is great for small businesses, designers, engineers, and entrepreneurs. It makes it possible to create new products and launch them as fast as possible with a low budget.

Definitely, it is all because of the internet because it has changed the way we live, the way we connect to our friends and family members, how we entertain ourselves, how we work, and how we shop. The Internet also changed our liking and capabilities, like how the products we order end up in our door.

What is additive manufacturing?

The industrial name of additive manufacturing is 3d printing, a computerized process through which a three-dimensional models of a part is made by depositing material in layers.

In additive manufacturing, compter-aided designs or 3d objects allow the creation of objects. The 3d objects are made in layers, unlike traditional business, which requires machining and other techniques to remove the extra material.

What is production in On-Demand Manufacturing world ?

Manufacturing industery, it is the branch of industry in which raw material are processed by machine or manual labor and transformed into intermediate goods. Heavy industry requires huge investments in hardware and machinery. In addition, it has a very complex work organization and a qualified workforce structure. In the heavy industry branch, investment and intermediate goods are produced and very high amounts of production are made.

  • Oil refining
  • motor vehicle production
  • cement production
  • iron and steel production can be given as examples of heavy industrial production 

The goods produced in light industry are not durable. Also, there is no need to make huge investments in equipment and machinery. The workforce can be either skilled or unskilled. The production of electronic devices needs a qualified workforce. Weaving, clothing, etc. workers in industries do not need any training.

Future of On-demand Manufacturing

The combination of digital manufacturing and cloud high tech not only unleashes data from any source to drive the IoT but also makes it easy to transform it into meaningful and viable information. 

Drive smart manufacturing decision-making. However, no matter how big your data is, it's only valuable if you have the right data for the right people at the right time.

The digitizing process

There are two main problems related to digitization. 

  1. The first is the need to digitize processes manually
  2. And the second is the ability to easily connect and share digital information. 

We all love whiteboards, spreadsheets and post-work notes to know what to do. The problem is that these resources create rows of data, without providing any historical context, and may not be updated in real time.

 The digitization process is beneficial through automation, but a derivative product is that abundant data is collected and can be leveraged without any additional work.

Connect digital assets

Modern demands-driven manufacturing manufacturers are connecting their environments - within the factory, across the enterprise's factories, and across the extended supply chain - in while keeping the data at the server. 

Data is accessed, aggregated, analyzed, and shared by "standardizing" the data (translating it into a common format) for faster and easier access, aggregation, and analysis. This release of data provides modern manufacturers with real-time relevant information to adapt to changes in demand and future business insights to tailor action or predict and prevent breakout events.

On-demand manufacturing examples

Due to the fact that the needs of society are constantly changing, production technologies do not stop developing. The introduction of the latest scientific achievements into production serves as a source for the development of industrial technologies.

It is impossible to imagine modern production without the use of the latest technologies. This also applies to materials and equipment that must comply with international standards.

  • Powerful equipment
  • information tools
  • production automation
  • energy saving and energy supply methods
  • waste disposal methods 

The competitiveness of an enterprise directly depends on these technologies.

Thanks to the automation of production, there is an increase in labor productivity and the quality of products, which has a beneficial effect on producers and consumers.

Among the main technologies in the light industry are the following:

  1. Production automation. Automatic cutting of fabric using a computer-aided models system (CAD) is successfully used in the clothing and leather goods industry. 
  2. Automated processes accelerate the creation of new models
  3. reduce labor intensity
  4. And improve the quality of manufactured clothing and footwear. 

CAD is an integral part of the clothing and footwear industry. A single database allows you to automate production processes with an enterprise management system and helps to reduce the cost of production.

Development of technologies for logistics

  1.  Large-scale supply chains that are focused on consumer demands are the main condition for the successful operation of corporations in the light industry market. 

Instant exchange of information between departments of the company, which are located at a great distance from each other, with suppliers who supply material, takes place using the corporate information system (ICS). The corporate system monitors the current state of affairs, notifies about problems that have arisen in production, supplies or sales.


 Thanks to the computer and modern software, it became possible to take measurements and produce clothes without contact, taking into account the individual characteristics of the figure of any person. Such systems allow remote measurements of a large number of people, which increases the number of consumers.

Application of innovative materials

 The latest technologies have not spared the material from which the clothes are made. Fabrics such as microfiber have unique characteristics and are superior to natural fabrics (silk, cotton) in their properties.

Updating IT high tech in light industry

Automated lines in light industry pay off pretty quickly. Combining Manufacturing Execution Systems (MES) with enterprise management systems helps to multiply the economic benefits of production.

What are the manufacturing techniques?

How to transform raw materials into finished products? This is the question that arises every time you want to design new products. To guarantee quality products, manufacturers invest a colossal amount in research and development to define the most profitable alloys and manufacturing techniques.

Studies of manufacturing techniques and industrial processes

In a process industry, the first step is to study the process to be implemented and to define the most appropriate manufacturing methods. This step is essential before production. At the same time, it would also be necessary to determine the necessary material, the machines to be acquired, the tools, etc.  

Make an object in the rules of the art. To achieve this, you should first draw the part you want to create and write a specification. The latter must include the components.

Example: To make a cosmetic, you need additives, preservatives, perfumes, vegetable oil, etc.

In short, a company must have a production plan to optimize productivity in order to avoid stockouts. What is the goal? Everything must be available at the right time and in the right place: human resources, raw materials and equipment.

What are the advantages of having good planning?

Defining manufacturing techniques from the start allows a company to:

  • drastically reduce the need for manpower: employee inactivity is limited
  • save time and money: by limiting waste, the company will make significant savings
  • Optimize the use of equipment: machines are used optimally to reduce waste and unnecessary loss of time. At the same time, it will significantly reduce energy consumption
  • reduce the amount of stock: this industrial manufacturing process maintains a reliable stock level to limit space requirements

And above all, delivery delays are almost zero, because we control the quality of end products and production time.

What is the point of using a professional engineer?

Do you want to optimize your production line? The use of a process engineer is essential. He will be at your entire disposal to increase productivity and meet customer requirements. Its main tasks will be to:

  • Define the means and conditions necessary for production
  • To detect flaws
  • To foresee and anticipate the adaptations to be made and to facilitate the integration of new technologies.

What are the 4 types of manufacturing processes?

4 types of production processes

Do you often wonder how your everyday objects are made? There are dozens of different manufacturing processes, but most can be grouped into four distinct types: 

  • stock removal
  • deformation
  • Fusion
  • and assembly

In this article, we introduce you to these four ways to get a product, along with some of the manufacturing processes that correspond to them, and the industries in which they are frequently used.

Obtaining by removal of material

As the name suggests, material removal consists of creating the final product by tearing off small pieces of raw material, until the desired object is obtained. Also called industrial machining, this type of manufacturing process includes methods that make it possible to fabricate objects and parts from both wood and metallic materials.

Industrial machining is often used in the construction of prefabricated building structures, hardwood floors, and small metal parts such as gears. Milling, drilling, punching, filing and the various types of cutting are just a few examples of cut-off manufacturing processes.

Obtaining by deformation

The manufacture of products by deformation, on the other hand, is characterized by the irreversible transformation of the shape of raw material to make a part or an object. This involves rearranging the relative position of the constituent elements of material at the atomic level.

To achieve this result, various methods exist, most of them adapted to specific material. To name a few, forging and rolling are commonly used for metalworking, while thermofolding and thermoforming are used to create plastic objects.

Obtaining by fusion

This type of manufacturing process involves the bonding of elements through heat. There are far fewer processes in this category than in the previous two cases: sintering, molding, welding and additive manufacturing (better known as 3D printing) are the four main fusion manufacturing processes.

Sintering involves heating a powder until the grains, under the effect of heat, weld together. Casting (called foundry when it involves metalworking), on the other hand, refers to the act of melting a material before pouring it into a mold of a given shape. Once cooled, the material in question will have taken the shape of the mold into which it was poured.

Ultimately, welding involves the fusion of two separate pieces by applying heat to where they are to be joined. It is a manufacturing technique that can also be considered as an assembly method.

Obtaining by assembly

The final category of manufacturing processes is assembly obtaining, which involves binding two elements together using a third. This is the most common types of manufacturing methods - from gluing to riveting to bolting; these processes are used in almost every industry.

What are examples of a manufacturing business?

Manufacturing business

This is entrepreneurship for the production and sale of various types of goods and services. The manufacturing business includes:

  1. Industrial output
  2. Production of agricultural products
  3. Release of goods for industrial and technical purposes
  4. Production of consumer goods
  5. Construction works;

An entrepreneur who has ideas for a manufacturing small business will constantly need to solve two main problems: 

  1. How much to produce and at what the best pricing to sell?
  2. What should be the volume?

 In manufacturing, the margin is usually a range of 100-200 percent. If the product is in demands, the price can be increased. And if the production capacity allows, then the volume of production can also be increased. But you also need not to overdo it with volume. It may happen that you produce more than you can sell. Thus, one has to constantly think about cost and volume.

What is the easiest thing to manufacture?

The more affordable goods from the mass market, the more valuable do-it-yourself things become - DIY goods. Usually, they are associated with quality, natural material, and individual approach and less efforts. The personal story of the creator adds value to such things.

For a successful business making PET bottles is the easiest thing to manufacture. Here is the method to make PET bottle. 

How a bottle is born from a preform?

One of the main advantages of PET bottles is the ease of production. Therefore, many beverage producers, , have their own blowing lines.

The bottles are blown out just before the drink is filled. The entire production is a single cycle - preforms were poured into the blowing machine, and at the exit they received a finished product with a lid and a label.

And although a bottle of any shape can be blown here, the flight of models ideas is interrupted in the banalest way. 

7 Stages of Pet Bottle Transformation

The transformation of PET resin into bottles, flasks, pots, or other types of packaging takes place in 7 different stages and the last three are those related to the production of the bottle itself:

  1. Drying
  2. food
  3. Laminating
  4. Injection
  5. Conditioning
  6. Breath
  7. Product ejection.

In conditioning, the preform receives a different heat treatment, heating more where necessary - according to the package design - optimizing the blow. This conditioning can be carried out in two different ways, depending on the system adopted for blowing packaging:

a)   A stage (also known as integrated or hot cycle)

b)   B stages (also known as a cold cycle)

In the one-stage system (a) it is possible to vary the production of shapes and sizes for vials and bottles more, although productivity is lower.

In this system, the preform follows from the injection mold directly to the conditioning at a temperature around 100ºC.

In the two-stage system (b) the priority is the production speed, thus, the preforms are injected (first stage) in large quantities and stored, being sent later to the place where the blow will be made (second stage) as needed. In this system, the preform is previously injected. 

To be blown, it arrives cold from the stock and enters the oven, where the region to be stretched will be conditioned. Once ideal temperatures are reached, the preform is prepared and optimized for the next stage.

What is in blowing method?

In blowing, the preform is placed, usually with the help of robots, inside the mold, whose cavity has the final shape of the packaging.

A pin penetrates the neck of the preform to stretch it, and the compressed air is blown into it.   The preform body is inflated in a controlled manner with the help of a stretching rod. In this way, the preform is stretched, orienting the PET molecules in the radial and axial directions, that is, bi-oriented, until it touches the blow mold cavity and acquires its final shape.

 Finally, the blown packaging is removed or ejected from the machine, ready for filling.

How do I get a manufacturer to make my product?

Almost anything can be produced in such factories.

In China you can find foundries and tool production for plastic cases. There are many limitations in tool making. The main ones is the absence of large mold manufacturers and the practice of transferring part of orders to competing partners. In this regard, for example, the production of a set of molds for complex bodies with many parts (for examples, such as a printer or an air conditioner) can take years.

What you should pay attention to when starting production remotely:

  • Be sure to make personal visits to the factories and communicate with the management before the start.
  • Logistic and communication problems are solved by inflating budgets.
  • The cost-saving strategy for launching production in China does not work, so expect that with the lower cost of key resources (tooling, components, and certification), the cost of launching will still be high in the end.

What products should be launched in Southeast Asia?

  • all smart consumer goods: smartphones, smartwatches, smart collars, tablets, and other electronics;
  • all wearable and compact devices: headphones, headsets, body sensors, mini-routers;
  • Everything consumer, which should be massive and cheap: covers, chargers, cables, adapters, flash drives and other spinners.

In addition to all of the above, there remain a huge number of devices for which there is no obvious answer "where to locate production." In the end, a lot depends on the sales and certification conditions. Often there is no choice at all.

How much does it cost to make a prototype?

When developing a new product, you think not only about what function it will carry, but also about how it will look. Such tasks (appearance, functionality depending on human biometrics, compatibility with other devices) are traditionally solved by industrial design studios.

 The customer addresses them, explains the problem and receives a prototype of the product, which may differ significantly from the initial ideas. And also such a prototype costs serious money.

To make a prototype following factors play an important role in cost prediction:

3D Printing

3D printing on modern 3D printers can be carried out using one of four technologies:

  • Fused deposition modeling (FDM) is the most common (deposition of layers).
  • SLA stands for stereolithography.
  • SLS - sintering technology.
  • PLS - laminated sheet build-up .
  • and other high process.


Various materials are used to make prototypes:

  • Liquid photo-polymers that harden in ultraviolet light are most commonly used for prototyping in the jewelry and dental industries.
  • Plastic ABS, PLA, HIPS, FLEX - used in most cases.
  • Gypsum powder - used for SLS.
  • Multilayer paper, metal powder, sawdust, acrylic.

What are the stages of industrial design and how much does it cost?

Conventionally, the development of industrial design can be divided into the following stages:

1) Design research

2) Sketching

3) Creation of a prototype according to the sketch.

Industrial design is usually expensive and very expensive. The costs of manufacturing new process products are almost always much higher than originally planned. And that's why:

  • There are no typical engineering solutions for a new product. An entrepreneur imagines only his function and target parameters, so the development of technical solutions goes through many stages before the desired results are obtained.
  • New products are often made with new material that few suppliers and contractors work with. In addition, it is not clear how the properties of this material will manifest themselves in this product. Therefore, it takes time to master a new competence, which is often nowhere to get.
  • For new products, a design code has not yet been formed - a combination of visual signs that will allow the client to immediately understand what kind of product it is and how to use it. Through trial and error, you have to make new products from which you have to until the result is the desired color combination. Volume, shape, and composition.

Of course, all trial and error cost money, and prototyping is a stage in industrial models that always turns out to be more expensive than planned.

How do you legally protect an idea?

The idea, as it is, that is, only in the form of the author's creative intention, is not subject to legal protection. Therefore, in order to be able to protect one's rights to an idea, it must be expressed in any suitable objective form recognized by the state as an object of intellectual property. So, let's look at the algorithm of actions.

First, formulate your idea correctly. Read how to do it.

First of all, it should be remembered that brevity is the sister of talent.

The practice that has developed in recent years offers the following options for formulating ideas:

  1. Creation of an idea formula, similar to a two-part formula (limitations and differences);
  2. The publication of the description of the idea with the subsequent deposit of copyright.

Registration of rights to an idea - how and where?

You can register the rights to an idea only after giving it the form of the objects of intellectual property:

  • Invention
  •  utility model
  •  industrial design
  • achievement in the field of selection
  • trademark
  • know-how
  • works of literature
  • science or art
  • computer program or database

State registration of the abovementioned intellectual property objects, with the exception of know-how, selection achievements and works protected by copyright, is carried out at the FIPS (specialized department of patenting industrial property).

A non-disclosure agreement (NDA) and trade secret regime

What is it? A trade secret regime is a special regime for protecting commercial information that competitors do not know about. You can protect any information that brings income to the owner, helps to avoid costs, maintain a good position, or provides some other benefits.

How does NDA benefit the owner?

Within the framework of the trade secret regime, the owner of the idea can draw up an NDA (non-disclosure agreement) - a non-disclosure agreement concluded by individual entrepreneurs or legal entities: for example, 

  • Employer and employees
  • Counterparties
  • Investor and entrepreneur

Individuals cannot sign such an agreement. The NDA contains the terms of data exchange, defines who and how is responsible for their security, stipulates how the data can be used and to whom it can be transferred.

How does NDA work? 

An NDA does not work without a trade secret regime. The commercial secret regime does not arise just like that; the entrepreneur needs to take certain actions. 

To establish which information belongs to the commercial secret and which does not; which of the employees is admitted to it, where the documents are stored, put the stamp “Commercial secret” on the documents All these requirements are provided for by the Federal Law “On Commercial Secrets”. If its conditions are not met, the NDA agreement may be invalidated.

What is a Patent?

What is it? A patent is a title of protection that certifies your exclusive right and authorship to an invention, model, and industrial model. A patent lasts from 5 to 35 years - it depends on the country where you got it and what you patented.

Fill out an application, pay the fees, and wait for a decision. The process can take 12-18 months.

The choice of protection method depends on the type of the idea itself. If a new technology for the production of products was created or a new device was invented, it is necessary to submit an application for an invention in complete secrecy, and only then make presentations and negotiate. 

If a new models of the car or furniture is invented, you can apply for a patent for an industrial design.

After submitting the application, the priority is fixed, so even if an unscrupulous investor submits an application after you disclose information, he will be refused.

After submitting the application, the priority is fixed, so even if an unscrupulous investor submits an application after you disclose information, he will be refused.

What is a manufacturing process flow?

The production process is the totality of all the actions of personnel and tools that are required at a given enterprise to manufacture products.

The main part of the production process is the technological process, consisting of purposeful actions to change or determine the state of the object of labor.

A technological operation is a complete part of a technological process at one workplace.

The production process consists of labor and automatic processes, as well as natural processes that do not require labor.

Depending on the purpose, the following are distinguished: main; auxiliary; supporting production processes.

What is the major production process?

The main production processes are designed to directly change the state or form of the material of the product, which is, in accordance with the specialization of the enterprise, a commercial product (for example:

  • the processes of manufacturing cast iron, steel, rolled products at a metallurgical enterprise
  • processes of manufacturing car parts and assembling units
  • assemblies and the car from them) at an automobile manufacturing enterprise, etc.).

What is the Ancillary production process?

Ancillary production processes are those that result in the manufacture of products that are used, as a rule, at the enterprise itself to ensure the normal functioning of the main processes (for example, the production of spare parts for the repair of main technological equipment.

The manufacture of mechanization and automation equipment of its own production, the production of various types of energy for the main production). Serving production processes provide the main and auxiliary processes with the services necessary for their normal functioning (transport or warehouse operations).

According to the principle of division of labor between man and machine, production processes are subdivided into: manual; mechanized; automated; automatic.

Example of Manual process 

An example of a manual process is locksmithing performed by a worker without the aid of machinery; mechanized processes are carried out by the worker with the help of means that reduce the amount of physical exertion on the worker (for example, work on a screw-cutting lathe, etc.). 

Automated processes are partially or completely performed without human intervention (for example, work on a semi-automatic machine).

What are the types of manufacturing industry?

Types and forms of industry 

1. The concept and essence of an industry 

2. Sectoral structure of an industry 

3. Forms of industry

The concept and essence of an industry

The industry is a factor in scientific and technological progress, as well as expanded reproduction. The industry is distinguished by various functions of an integrated and regional-forming nature among other sectors of the economy. 

Manufacturing industery

It is generally called "industry" and is defined as a case (of a business establishment) that meets both the following conditions (1) and (2).

(1) Business establishments that mainly manufacture and process new products

. A new product is not necessarily completed. It does not mean only goods but also includes, for example, as-cast mechanical parts.

(2) Business establishments that mainly wholesale new manufactured and processed products

"Wholesale" in this survey refers to the following operations.

  • Selling to wholesalers or retailers.
  • Selling products in large quantities or in large quantities to industrial users (factories, mines, builders, corporate agriculture, forestry and fisheries, various companies, government offices, schools, hospitals, hotels, etc.).
  • To sell products that are mainly used for business purposes.
  • "Products mainly used for business purposes" are office machinery and furniture, facilities such as hospitals, beauty salons, restaurants, hotels, industrial machinery (excluding agricultural equipment), construction materials (wood, cement, flat glass). , Kawara, etc.).
  • Delivering products to other offices belonging to the same company (other factories, sales offices, etc. of the same company).

Classification of manufacturing industry

There are a wide variety of fields in the manufacturing industry. The world economy is supported by all manufacturing industries, not just automobiles and televisions. In general, manufacturing is divided into three categories. 

On-demand manufacturing market size 

According to TrendForce's Research Institute, the introduction of smart manufacturing will be the key to the survival of enterprises during the new crown pneumonia epidemic.

 In addition to driving the development of AR, remote operation, visual recognition and other related tools and technologies, it also deploys more Transportation machines such as autonomous unmanned vehicles (AGV) and mobile robots (AMR) to reduce manpower to maintain social distance.

Expected Global Smart Manufacturing Size

 It is estimated that the scale of global smart manufacturing will rise to USD 400 billion in 2024, with a compound annual growth rate of 10.1%. The main growth momentum will come from the upgrade of remote and contactless technologies.

An analyst at the Top Industry Research Institute pointed out that in 2020, Global Industry 4.0 will present the Internet of Things, big data, and other elements with a more stable investment rate and more mature technology in collaborative robots (Cobot), Digital twins (Digital Twins) and other solutions.

 They can achieve the purpose of reducing costs and increasing productivity, are highly concerned and adopted by related industries.

What is the concept behind Industry 4.0?

The world-renowned big factory Industry 4.0 is mature, smart factories and peripheral applications help fight the epidemic

Since Germany put forward the concept of Industry 4.0 in 2011, well-known companies around the world have begun to adopt it. Therefore, the development of related technologies has become increasingly mature.

 According to the assessment of Ericsson, the deployment of industry 4.0 solutions based on mobile networks has been averaged over five years.

 It can save about 8.5% of operating costs. The application cases include asset tracking, AR applications, condition monitoring, mobile robots, and networking tools. Its 5G manufacturing plant facilitates remote troubleshooting with AR equipment and supports education and training.

How can smart manufacturing be efficient in a tough epidemic (covid-19)?

Eaton, a major power management company, uses Industry 4.0 solutions to fight the epidemic. It uses Microsoft HoloLens 2 AR glasses to display 3D images in physical factories and supports remote connections, performing core tasks remotely, and ensuring employee safety. 

Hitachi, a major Japanese manufacturer, not only uses thermal imaging cameras to ensure the body temperature of employees in the workplace but also analyzes the use of personal protective equipment with video.

Enterprise transformation to adapt to the post-epidemic era, promote smart machinery cloud platform to accelerate world smart manufacturing flow. 

What is the role of digital transformation of businesses?

Observing the trend of smart manufacturing in USA, the current proportion of small and medium-sized enterprises in the manufacturing industery is about 97%. 

However, the digital transformation often faces bottlenecks such as insufficient information manpower and poor cost-effectiveness. Therefore, smart manufacturing plans are mostly promoted by the government and legal entities. 

Global Politics and Economy

Global politics and economy, industrial trends, and post-epidemic revitalization strategies are the three major entry points for the current government to promote smart manufacturing.

 For example, the current smart machine cloud platform aims to upgrade the value of small and medium-sized enterprises’ products and increase international competitiveness, and accelerate the world overall the process of intelligent manufacturing.

The recovery of the manufacturing companies in 2021 requires a more robust and flexible supply chain. In addition to the existing remote and contactless hight tech tools, deploy more IoT sensors and devices to create virtual workplaces, or through blockchain, 3D Printing expands operational flexibility.

 It is expected that in the post-epidemic era, smart manufacturing will have more application scenarios and business opportunities to be explored, strengthening the survival and profitability of manufacturers in the face of future crises.


One of the most important elements that keep the economy of a nation alive is the manufacturing sector. Today, all countries that have completed their industrialization process, developed or considered to have commercial viability are actively benefiting from the blessings of the manufacturing sector. 

Considering the production process of goods, equipment, chemicals, machinery and many other materials that we cannot count, it is no wonder that the manufacturing sector has spread over a wide area to cover the whole of trade.

The truth is that every industry you can think of owes its ability to operate efficiently. For example, the medical or healthcare industry relies on manufacturing for the production of many materials, equipment, or tools it uses. 

Likewise, the agricultural industry has relied on the manufacturing sector in the production of machinery, chemical drugs, and tools, which are indispensable for the sector.

If you want to get a place in this sector, you also have a chance to start with small scales (machine parts production, home-made materials, etc.). 

Of course, you can choose to enter the sector with a medium-sized business, grow your business over time, and start larger commercial activities.

Large-scale manufacturing enterprises are concentrated capital, but if you can determine your target correctly or choose products with high marketing rates, you will not have much trouble keeping up with your competitors in the industry.

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