Developing a product takes months, if not years, of research and development. And one important step is deciding what kind of manufacturing to use.
There are two primary choices: process and discrete manufacturing. Though both yield final results, they target different types of products and serve distinct markets.
Learn about the nuances of these methods and discover which is best for your needs.
What is discrete manufacturing?
Discrete manufacturing involves assembling separate, countable items to make a final product that can be turned back into its base components. A computer is an example of discrete production because it has many removable and replaceable parts.
Most companies using discrete manufacturing rely on automated processes to assemble complex goods. Automation minimizes the risk of human error, reduces the need for reworking, and promotes speed and efficiency. But many industries, like fashion, still rely on human involvement for quality control and detailed processes.
Here are some discrete manufacturing examples.
Automobiles
Cars and trucks are classic examples of discrete manufacturing, comprising thousands of individual parts that make up a single functional whole. Vehicle manufacturing depends on intermediate goods, which are the individual items that make up other, more complex products.
Furniture
Chairs, tables, and desks are made from individual components like wood and screws. Many types of furniture, such as sectional couches and desks, require customization. Discrete manufacturing can adjust specifications for certain orders, while process manufacturing can’t.
Toys
Many toys, including playsets and board games, are composed of various parts such as cards, rope ladders, and dice. Despite being sold as part of a unit, each component is distinct and identifiable.
Smartphones
Smartphones are a prime example of high-tech discrete manufacturing involving individual components like screens, batteries, and circuit boards. They also offer some degree of customization. For instance, the same facility can produce phones with different storage capacities.
Airplanes
Aircraft manufacturing represents one of the most complex forms of discrete manufacturing.
Airplanes require intermediate goods — and many of the inputs in an airplane represent the final product of another entity’s discrete production process. For instance, a company that produces plane seats uses discrete manufacturing. While these goods are the company’s final deliverable, the airplane company treats them as inputs.
What’s process manufacturing?
Process manufacturing combines raw materials or ingredients through chemical, physical, or biological processes. With just a few exceptions, once produced, these items can’t return to their original inputs. For example, you can’t transform shampoo or a loaf of bread back into its ingredients.
Here are a few examples.
Soft drinks
Companies make soft drinks by combining water, flavorings, and other raw ingredients. Like many process manufactured items, soft drinks are measured volumetrically.
Laundry detergents
Manufacturers formulate laundry and dish detergents through chemical processes, blending various inputs to create the final product. Companies generally package and sell them based on weight or volume.
Rubber and plastics
Not all process manufacturing products are liquids. Chemical processes alter the structure of raw materials to produce rubbers and plastics. This creates polymers with specific characteristics, and they’re particularly difficult to separate.
Condiments
Ketchup, mustard, and mayonnaise are produced by mixing ingredients in precise proportions to achieve consistent flavor and texture. Like soft drinks and detergents, these products are typically sold based on volume or weight.
Pharmaceuticals
Pharmaceutical companies create medications using chemical or biological processes to ensure each dose is identical. But some pill and capsule-based medications blur the line between discrete and process manufacturing. While each pill represents a distinct unit, the inputs can’t easily be separated.
Discrete versus process manufacturing: 4 key differences
Here are some differences to know.
1. Nature of the products
Discrete products are tangible and countable, like cars, electronics, and toys. Each unit is identifiable and distinguishable from the others, making inventory management relatively straightforward. Serial numbers or barcodes also simplify inventory tracking.
On the other hand, process manufacturing creates goods that aren’t distinct and measured in volume or weight units. While you can count the containers, like bottles of kombucha, you can’t count “one kombucha.” Oil, paint, and food items are all examples of indistinct goods that you can’t count until they’re in containers.
This fundamental difference impacts how to manage, store, and inventory different products. Since process manufacturing products are usually in small containers, storage is similar — if not the same — to discrete manufacturing. You just have to put items on the shelf. But before packaging, most process manufacturing products only fit in vats or larger storage containers, which take up space.
2. Production processes
During discrete manufacturing, the manufacturer gathers all the individual components needed to produce a finished item. Then, they assemble those components using an established order of operations. Each part has a specific design and function, and the manufacturer often uses assembly lines to put parts together. And if a customer orders a modular design, the manufacturer can easily swap out certain components for similar inputs to enhance the finished product’s performance.
Process manufacturing involves the transformation of raw materials through physical, chemical, or biological means. These processes rely on heating or mixing the inputs to permanently combine them. Their nature makes it challenging or impossible to extract and reuse the individual raw materials later.
3. Product differentiation
Discrete manufacturing enables the production of highly customized and differentiated products. Since items have individual components, manufacturers can easily alter features, colors, and designs to meet specific customer requirements. For instance, an automaker can modify a vehicle’s paint color to fulfill a custom order. This flexibility lets the company meet a wide range of consumer preferences.
Meanwhile, process manufacturing usually uses a recipe to ensure consistent output. A company could adjust the volume and packaging, but not the product itself. Any customization has to happen at the ingredient or formula level before the production process begins. For example, a medicine company can’t adjust product formulas without rigorous testing beforehand, but it can change its packaging or kit items together.
4. Inventory management
With discrete manufacturing, inventory management involves tracking and overseeing individual parts and components. The more parts involved, the longer lead times might be. Manufacturers need to count parts accurately to ensure smooth production runs and prevent stock outs.
Process manufacturing deals with raw materials and bulk substances, so inventory management strategies have to focus on large-scale storage. Companies must optimize storage conditions to prevent spoilage or degradation.
Combining discrete and process manufacturing
Some products fit neatly into discrete or process manufacturing. But many involve a combination of both processes.
Consider bismuth subsalicylate — also known as Pepto Bismol, the pink liquid that relieves upset stomachs and indigestion. The company uses process manufacturing to produce the medication itself. But creating the bottle that contains it requires discrete manufacturing.
The final product includes:
- A label
- A dosage cup
- The liquid medication
- The bottle
- Plastic packaging to keep the cup and bottle together
You could disassemble the bottle, label, and dosage (discrete). But the medication consists of inseparable chemicals (process). Break things down further and consider how the label, dosage cup, and bottle were made. Both the dosage cup and bottle are probably plastic, which requires process manufacturing.
Most products require a combination of both processes rather than one or the other. Virtually all process manufactured goods require packaging, produced using discrete methods. And many parts that make up discrete products require process manufacturing.
Ready to streamline your manufacturing processes?
Whether you’re managing modular workflows, using process manufacturing strategies, or overseeing a more traditional operation, you need the right tools. Try Fishbowl, the all-in-one inventory management solution that unifies your data.
With Fishbowl, you can maximize the visibility of raw materials and product inventory. The configurable platform adapts to any production workflow — discrete or process. But that’s not all. Thanks to Fishbowl’s QuickBooks integration, you can unify your organization’s inventory and financial data, achieving true end-to-end visibility into your business. Schedule a demo today to learn more.