The word mass production is an abbreviation for mass production, and when you look at the dictionary, there is an explanation that “to reduce the cost of products, make a large number of products of the same standard.” However, in the context where the word mass production is actually used, it is not only the story that there are many and few, but also mass production = launching, it is a product used by consumers. It is used in the sense that.
In other words, mass production is “a premise that the finished product will be used by a third party”, and in a world where it is different from the “prototype”, even five pieces may be mass-produced.
What is the mass production effect?
The effect of mass production is that “increasing the production volume will reduce the cost per piece.”
(1) By purchasing parts in large quantities, the purchase price per part will decrease.
There are many parts required to make a product, and by purchasing them in bulk, you can purchase them at a low price.
(2) The ratio of fixed costs to manufacturing costs will decrease.
Variable cost 700,000 yen
With a total manufacturing cost of 1 million yen, if you manufacture 100 pieces,
Cost per piece: 1 million yen ÷ 100 pieces = 10,000 yen.
If you manufacture 200 pieces with this system,
Variable cost 1.4 million yen
With a total manufacturing cost of 1.7 million yen, 200 pieces will be manufactured.
Cost per piece: 1.7 million yen ÷ 200 pieces = 8,500 yen.
The “mass production effect” is that by manufacturing in large quantities, the proportion of fixed costs decreases and the costs approach variable costs.
In product development that makes things that are not in the world, development costs (design, design, mold costs, etc.) are inevitably incurred and can be considered as part of fixed costs.
To reduce manufacturing costs,
1. Keep development costs down (product development that makes the most of what you can do in-house)
2. Think about the sales channel first and carry out activities that anticipate a certain amount of sales (crowdfunding, etc.)
3. Raise the unit price of the product and raise the profit margin as a product plan with added value.
Such will be considered.
When seeking “mass production effect”, the number is important. Even if you mass-produce about 100 pieces, the effect will not be great. In the world of mass production effect, mass production means “mass production”.
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