In the manufacturing industry, High-Mix Low-Volume (HMLV) production is a special type of capacity that has been designed to produce high output with low lead times. It should be used in situations where there will always be insufficient inventory and at least one significant high-order opportunity coming up in a relatively short span of time. HMLV production is also called ‘fast turn’ manufacturing or ‘just in time’ production.
What is HMLV manufacturing?
HMLV manufacturing is used to produce specific high-mix items that are either difficult to predict and cannot be produced on an ‘as needed’ basis. In other words, HMLV manufacturing is a production method that is used by production planners who know that all of their products are needed in a given period but do not know in advance when they will need them. HMLV manufacturing is based on the ability to meet just-in-time delivery requirements by putting out products that are required soon enough to still match the planned period.
Significance of HMLV Manufacturing:
The significance of High Mix Low Volume manufacturing, as compared to other manufacturing methods, is that it can reduce the average inventory level and lead time. In industries where shipments are infrequent, but demand varies significantly from month to month or year to year, a relatively high level of inventory and long lead times may be ‘justified’ for a period whose actual demand is unknown. In such cases, the benefits that HMLV production provides in reducing cost and improving response time may outweigh the cost of carrying higher inventory levels than would be necessary if there were no uncertainty in demand levels.
HMLV production is one tool that can be used to reduce inventory levels within a time-based system. It does not, however, represent a solution to the uncertainty challenge. To manage uncertainty, the benefits of HMLV production must be balanced against the cost of keeping more inventory than would be needed when actual demand is known.
The main benefit of HMLV production is that it can reduce lead-time levels significantly. In addition to short lead times and small quantities, another benefit is that many high-mix/low-volume producers do not have capacity constraints, as they produce only specific products and do not use set production runs or make components for other products.
Conclusion:
HMLV production is a manufacturing method used to produce High-Mix Low-Volume production. The significance of HMLV production is that it can reduce the average inventory level and lead time. HMLV manufacturing has been used in situations where there will always be insufficient inventory and at least one significant high-order opportunity is coming up in a relatively short span of time.
RPWORLD offers a full line of HMLV equipment for various applications including Automobile spare parts production, medical equipment, automation equipment, aircraft manufacturing, robotics, scientific instruments, etc.
