When the engineers and the accountants put their heads together

Started 3 months ago | Discussions thread
Chris R-UK Forum Pro • Posts: 21,042
Re: When the engineers and the accountants put their heads together

I am not an expert on the very latest production techniques, but I think that both of your production models are rather out of date.

Current thinking is to have the shortest possible manufacturing lead time and the lowest possible investment in inventory - "Just in Time" manufacturing. An extreme example would be a modern car assembly plant that has a throughput time of, say, 6 hours for each vehicle with components and sub-assemblies coming in from suppliers for each day's production, often in kits There are no batches and each car is built for a specific customer order and gets shipped to the retailer almost immediately. There is no finished goods inventory at the manufacturer.

Whether you can do that for a $7500 lens, I don't know, but I bet that Canon, Nikon and Sony manufacture that way for most of their products. I would imagine that they manufacture is small batches for specific orders.

Of course, such a system requires a high investment in robotics, suppliers capable of daily deliveries, very good manufacturing engineering, modular design, very high quality control standards, etc., but it has a minimal investment in inventory and very short lead times.

If anybody knows more about this than I do, please correct me.

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Chris R

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