Image courtesy of Bern@t
The Factory
Alex Hornstein et al.
It is extremely difficult for small businesses in America to transition from a polished design of a product to low-volume production of that product. The process of finding, vetting and co-ordinating all the manufacturing capacity needed to produce low volumes of a finished good takes prohibitive amounts of time andmoney, presenting a significant obstacle to small businesses producing competitive products. American manufacturers do an excellent job offering rapid prototyping services to produce single units, and manufacturing becomes viable once more in larger volumes, starting around a thousand units a month, but the space in between those two service, which spans three orders of magnitude, is a gaping hole in American manufacturing capability.
To fill this hole, we propose a general-purpose factory that specializes in producing small volumes of products designed by small businesses. The goal of this factory is to be an enabler at every step of the product development cycle, helping small businesses get cost- effective, quality products into the hands of customers. In order to attain this goal, the factory will implement an innovative, well-designed strategy that incorporates elements of just-in-time manufacturing, value-added production, operations, social engineering and interface design, as detailed below:
Just-in-time manufacturing: There have been a great deal of advances in just-in-time manufacturing in the last decade, allowing a factory to respond quickly to market need for a number of different products. By using cutting-edge technology that has fast setup times and tool changes, as well as continually refining job setup procedures in-house, we can bring setup time to a minimum and be able to cost-effectively produce a wide variety of parts on short notice. This manufacturing style fits very well with low-capital businesses, allowing for flexible, responsive production and many opportunities to iterate and perfect a product’s design.
Value-added production: A common problem for product designers is that existing low- volume manufacturers are too specialized. One manufacturer might make plastics, while another makes printed circuit boards and another does electronic assembly. Coordinating many manufacturers to produce many components of a product is a logistical nightmare. Low-volume manufacturing follows an 80-20 rule: 80% of a set of consumer goods can be produced with 20% of the machinery. Under that rule, we plan to offer a number of popular manufacturing processes under one roof, offering tight control over logistics and a one-stop shop for the production of most consumer goods within our scope. Additionally, we will offer value-added services such as design for manufacture consulting, rapid prototyping, and factory drop shipping. The goal is for a client to be able to give us a design for a product, a list of orders and a credit card number, and we’ll get those products into customers’ hands.
Operations: Part of the product development cycle is developing a robust supply chain, ensuring that production will not be interrupted or delayed if one supplier has a glitch. We will find primary and backup sources for all components used in a product we produce, as well as partnering with contract manufacturers, should our own production equipment malfunction or be over-utilized. We will be completely transparent about our sourcing and production practices, as a means of ensuring our clients of our reliability as well as maintaining what we believe to be the best, most effective business practices.
Social Engineering: Social engineering has a number of implications for this model of factory. In the most literal sense, it’s possible to bring together many small businesses that are independently producing small volumes of similar products and combine their orders,
producing economies of scale on material costs. In a related vein, there is a significant market in the US for consumer products released under an open-source hardware license, a license that makes the design of the product freely available and allows others to use and modify the design for commercial purposes. Businesses designing open-source products fit perfectly into our target client demographic. As we develop a repertoire of open-source products, we’ll be in a position to support designers using simple open-source products as building blocks for more intricate products.
In a broader sense, we strive to create a positive social environment in our production facility. We plan to recruit capable designers and builders to work in our production environment, and strongly push principles of worker-controlled production, feedback, and redesign of production methods. We believe that by hiring workers who are themselves designers, promoting constant education in the factory environment and maintaining a sane, social culture around production, we can develop and improve in-house techniques for effective manufacturing in our business model.
Finally, we aim to recruit a very different set of workers than most manufacturing facilities. We’d like to attract and foster a culture of budding designers and entrepreneurs who will benefit greatly from the hands-on manufacturing experience they’ll get by working at the factory. We can offer subsidized manufacturing time, worker-led education and shared-risk funding on products workers design (on their own time) to attract top talent in our area. We believe that the factory’s potential as an educational facility and incubator for budding entrepreneurs is as great a social benefit as the service it provides to existing underserved businesses.
Interface Design: A major limitation of the current model of manufacturing is how designers interact with manufacturers. Communication in manufacturing hasn’t changed much since the 80s, and as a result, the process of getting a product produced in 2010 involves looking up a manufacturer in a large directory, calling or emailing a salesperson, going back and forth for several days over product details or price or lead time, ordering a sample, possibly visiting the plant, and then finally ordering a production run. We believe from the bottom of our hearts that this must change. We will dedicate a great deal of effort towards developing a suite of tools to simplify and streamline the process of going from a computerized design to a finished part, with the ultimate (and most likely unattainable) goal of making production of a hundred units as simple as printing a hundred copies of the design.
Every one of the elements described above is instrumental in making high-quality, low volume products viable in America, but not a single idea in this document is new: the philosophy, the machinery, the market–they all exist, and they’ve been explored and tested by pioneers far more ambitious than us. All we’re suggesting is a synthesis, bringing cutting-edge ideas and innovations in manufacturing into a single factory and focusing them on the needs of the expansive, under-served world of small product-based businesses. We believe there’s huge potential for growth, for social good, and for improving the way manufacturing is done in America, and we hope to God we’re right.