What advantages do small factories have over big factories in China?

By justchinait
January 15, 2021

The large factory is large in scale, standardized in management, and the site, assembly line equipment and staffing are all made in accordance with the mass production. It is difficult for the small-batch orders to meet the needs of the large factory for survival and development. Therefore, the large factory pays more attention to the major customers, production resources are also prioritized on high-quality orders. The production management of large factories is quite standard, the establishment and change of order production often need to go through multi-level approval, the procedures are more complicated.

In contrast, the small factory in the production scale, management, personnel and equipment configuration are less than the big factory, subject to the site, personnel and other factors, small factory production will also form the ceiling. But in some ways, small factories have natural advantages that large ones do not.

On the one hand, in the processing costs of small batch orders, small factories can play more price advantages. Compared with the large factory, the average production cost of a small batch order is lower than that of a large factory because of the lower total cost of site, equipment and personnel.

On the other hand, small factories are more flexible in the regulation and control of order production. In contrast, small factories do not have as many complicated approval procedures as large factories, and production line configuration is more flexible. In many cases, under the direct arrangement and mobilization of the factory director, the production order can be quickly optimized to shorten the production schedule.

In small factories, the boss is often the factory director. For customers who have a good relationship with the company, the boss will be more attentive to personally arrange to help solve technical and schedule problems.

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