Manufacturing isn’t a one-size-fits-all process. Different products require different equipment, speeds, and levels of customization, making it tricky to choose the best method for your business.
If you need to quickly produce large amounts of product with slight variations, batch manufacturing is the way to go. Here’s a guide to this method and tips for success.
What is batch manufacturing?
Batch manufacturing, or batch production, is a method of producing groups of products. All items in the group complete each manufacturing step together before moving on to the next production phase. Once that batch is ready, another starts.
This process lets you make adjustments between batches to suit your business’s needs. Take newspapers, for example. They print once a day or once a week, using the same equipment and materials but with different content. Once one batch is out for delivery, the company starts on the next paper.
Another good example of batch manufacturing is when a bakery produces cookies. The staff mixes the dough, distributes it on baking sheets, and then puts all the cookies into the ovens. After the cookies finish baking, they’re decorated and prepped for sale. The cookies are all ready at the same time, and the bakers can start using the equipment for a different product, such as cupcakes.
When is batch manufacturing the right method?
Batch manufacturing is best for producing similar products using the same equipment. Consider the bakery. It uses the same bowls and ovens to produce cookies, cakes, and breads, and a cosmetics company creates the same lipsticks in different colors.
This manufacturing process also lets you respond swiftly to shifts in demand. Since you make separate batches rather than continuously producing the same product, you can adjust their attributes seasonally or make more when demand increases. For example, a chocolate company that makes Santa-shaped chocolates for Christmas then uses the same process to make batches of bunny-shaped chocolates for Easter.
What’s the difference between batch production, continuous production, and job shop manufacturing?
Batch manufacturing might not be the right choice if you need to continuously manufacture one product or entirely unique items. Continuous production and job shop manufacturing are both possible alternatives, depending on what you’re producing.
Continuous production
Also known as process production, continuous production moves goods through an uninterrupted production line. All goods are the same or similar, and the process is usually highly automated.
Continuous production maximizes efficiency, results in more consistent goods, and keeps labor costs low due to automation. But it isn’t flexible. Machines run constantly, and it’s difficult to alter production numbers.
Job shop manufacturing
Companies use job shop manufacturing for bespoke or made-to-order products. They have the tools and machines to produce products in small batches customized to customer needs. For example, a small business that makes furniture might use job shop manufacturing to create different models of couches and armchairs in customer-specific fabrics.
Production and products aren’t standardized, and different pieces of furniture might not have the same manufacturing steps. This approach allows greater customization and flexibility but is often costlier than batch manufacturing or continuous production. The non-standard process doesn’t allow for bulk ordering, support automation, or split production costs over large quantities of items.
4 advantages of batch manufacturing
Here are some of the biggest advantages of this manufacturing method.
1. Cost reduction
Batch production reduces expenses because you can buy production materials in bulk and use the same equipment over and over. This also distributes the costs of setting up the production process. And since you finish one batch before moving on to the next, you’re not running machinery continuously, further cutting operating costs and extending equipment’s productive life.
2. Waste reduction
When you produce groups of items in response to demand, you can expect to sell every item and avoid overstocks. And if you identify a problem in a production phase, you can correct it before moving to the next phase or making the next batch. This lowers waste because you’ll likely discover an error before producing too many items.
3. Increased flexibility
Since you produce a group of identical products in every batch, it’s easy to produce different variations. Books are a good example. Publishers print copies of one book before moving on to the next, using the same equipment for each SKU. It’s also easier to respond to demand and make changes for the next production cycle, like gearing up for a new cover or fixing a typo in the first batch.
4. Lot tracking
By manufacturing distinct groups of products, you are able to easily distinguish them by their lot numbers. Each product batch will have a lot number attached to it. This helps with product recalls, government oversight, and other situations in which you need to know where particular products are located or when they were manufactured and sold.
3 disadvantages of batch manufacturing
There are also some downsides to this production method. Here are the most significant disadvantages of producing products in batches.
1. Extended production
Because all products must finish each production phase before starting the next, batch manufacturing takes longer than continuous production. In the bakery example, the first several bowls of cookie dough may sit idle as staff members mix up additional batches because all of the cookies must be ready to bake at the same time. With other production methods, the dough would move to the next phase and bake sooner.
2. Increased risk of human error
You lose the entire batch if an error occurs in batch production, putting it at a disadvantage over smaller-scale production methods. If too much salt goes into one small bowl of cookie dough, only a few cookies go to waste. If it goes into the entire batch of dough for the day, you lose more supplies, time, and labor.
3. Costlier than mass production
More manufacturing stages mean higher costs. Batch manufacturing is typically more expensive than other methods because it includes more steps. It also doesn’t take full advantage of your equipment, leaving some unused at different stages. Continuous production is cheaper because it streamlines manufacturing and makes the most of your resources.
3 tips for using batch production in manufacturing
Here are three ways to make the most of your manufacturing process.
1. Generate batch numbers
Identifying each batch with a unique lot number or serial number helps track the origin and composition of each product group. Batch numbers also make monitoring when perishable items expire easier because you can include expiration dates in your serialization. And if an item is defective, the specific production batch is traceable, increasing accountability and fixing production issues faster.
2. Streamline production schedules
Monitor sales patterns to decide when to produce a new batch of a specific item. If you increase production with consumer demand in mind, you avoid making too much of certain SKUs, help prevent overstocks, and save on storage costs. Products are also ready when consumers want them so you can meet their needs.
3. Embrace the right software solutions
Optimizing batch production requires a lot of moving parts, and inventory tracking software can do a lot of the work for you. Use Fishbowl’s inventory management tools to track product availability and sales so you know when to start another batch. It also lets you monitor the status and location of each product for maximum transparency and more informed decisions.
Ready to optimize your batch manufacturing process?
Fishbowl facilitates efficient batch manufacturing by managing stock and production in a single platform. Its QuickBooks integration makes tracking inventory movements effortless, letting you streamline batch production, match output to demand, and maximize quality control. Try Fishbowl today to make complex manufacturing simple.