„Digitalization. Automation. Standardization. What if, with further customization and personalization, batch size 1 becomes the norm?“

In a world where technological progress is advancing exponentially, the fundamentals of production have changed dramatically. The digitalization, automation, and standardization of production processes have increased efficiency and precision. But what happens if we go a step further and can individually adapt each unit of a product to the customer’s needs? And what does such a step mean for shopfloor software like DOQ?

In this blog post, we will discuss five questions:

1. The Evolution of Production Technologies: How has digitalization revolutionized manufacturing processes, and what impact does automation have on scaling production?

Digitalization has revolutionized manufacturing processes in many ways, and automation plays a central role in this. Here are some of the most important impacts:

Increased Efficiency: By introducing digital technologies, production processes can be optimized. This can be achieved, for example, by using data analytics to identify bottlenecks, improve process control, and reduce waste.

Flexibility and adaptability: Digital technologies enable manufacturers to quickly adapt their production to changing market conditions or customer requirements. This can be achieved by adapting production lines, rapidly developing prototypes, or introducing new products.

Quality assurance: Digital systems such as DOQ enable more precise monitoring and control of production, which can lead to higher product quality. Automated inspection processes can detect and reduce defects early.

Cost reduction: Automating production processes can lower labor costs and reduce production downtime. Resources can also be used more efficiently.

Innovation and product development: Digital technologies enable companies to develop and bring new products to market faster. Virtual prototypes, simulation-based design processes, and 3D printing are examples of technologies that can accelerate product development.

Connectivity and communication: Digitalization enables seamless communication between different parts of a production process, as well as between suppliers, manufacturers, and customers. This can make the supply chain more efficient overall. This requires data exchange from the ERP system to the individual workstations on the shop floor, where customized production orders are made available by a solution like DOQ.

Automation plays a crucial role in scaling production. By using robots, computer-controlled machines, and other automated systems, companies can ramp up production more quickly and scale to larger volumes. This is particularly important in industries that require high precision and repeatability.

Automation also reduces dependence on human labor, which is beneficial in situations with labor shortages or in regions with higher labor costs. Furthermore, automated processes can often run around the clock, leading to increased production capacity.

It is important to note, however, that automation also brings challenges, particularly in terms of workforce skills and managing social impacts on labor markets. It is crucial that companies and governments develop strategies to ensure that the benefits of digitalization and automation are distributed fairly.

1. Batch size 1: Tailor-made products for every customer: What does it mean for companies to be able to produce products in a quantity of one? How does this affect customer loyalty and competitiveness?

The ability to produce products in quantities of one is often referred to as „mass customization.“ This means that a company is able to produce customized products with the same efficiency and quality as mass-produced products. This has several significant implications:

Customer centricity and individualization: Mass customization allows companies to tailor products precisely to the individual needs and preferences of their customers. Customers can choose from a variety of options and feel that the product was made specifically for them. This significantly strengthens customer loyalty.

Competitive differentiation: Companies that master customization can differentiate themselves from competitors that only offer standardized products. This can be a decisive competitive advantage, as it encourages customers to buy from the company that offers them the most customized product.

Customer retention and brand loyalty: By being able to deliver exactly what the customer wants, a company strengthens customer loyalty. Customers will be more likely to stay with a company that can meet their individual needs and desires.

Reduction of inventory and overproduction: Because products are made to order, the need to maintain large inventories is reduced. This reduces storage costs and the risk of overproduction and unsold inventory.

Expansion of market potential: Customization allows a company to appeal to a broader market, as it can offer products for a variety of customer needs. It also opens up the opportunity to better serve niche markets.

Collecting customer information and analyzing data: By customizing products, companies can gather valuable data about their customers‘ preferences and needs. This information can be used for future product development and marketing strategies.

Costs and profitability: Customization can help reduce production costs because large quantities of standardized products do not need to be pre-produced. Furthermore, customers may be willing to pay a higher price for customized products, which can increase profitability.

It is important to emphasize that implementing customization also requires complex technological solutions and efficient logistics. It is a strategic approach that must be well-thought-out and integrated to realize the full range of benefits.

1. Challenges and opportunities for companies: What technological, logistical, and organizational hurdles must be overcome to implement batch size 1? And how can companies benefit from this paradigm shift?

Technological hurdles:

Flexibility of manufacturing facilities: Production facilities must be able to quickly switch between different product variants while maintaining the desired quality.

Automation and robotics: Automation technologies play a crucial role in making individual production processes efficient and cost-effective. Robots and computer-controlled machines must be flexibly programmable.

CAD/CAM technologies: Computer-aided design (CAD) and computer-aided manufacturing (CAM) are necessary to efficiently implement individual designs and control production.

Logistical hurdles:

Efficient supply chains: Smooth logistics are crucial to ensure that customized materials and components are available on time.

Just-in-time production: This requires precise planning and coordination to ensure that all required parts are available exactly when they need to be integrated into the production process.

Traceability and quality assurance: Being able to trace the origin of all materials and components used is crucial to ensure quality.

Organizational hurdles:

New business processes: Companies must rethink and adapt their business processes to meet individual production requirements. This affects product development, planning, production, sales, and customer service.

Employee qualifications: Employees must be appropriately trained and qualified to handle new technologies and production processes.

Agile organization and culture: An agile organizational structure that can quickly adapt to changing customer needs is crucial.

1. Real-life examples: Here are some inspiring examples from medical technology companies that have already successfully integrated customization and personalization into their production.

Stryker Corporation:

Personalized implants and instruments: Stryker uses 3D printing technologies to produce customized implants and surgical instruments. This enables better fit and performance during surgical procedures.

Materialise:

Patient-specific models and instruments: Materialise offers services for medical 3D printing technology. They create customized models of patient anatomies that support surgeons in planning complex procedures.

Prosthetics manufacturers such as Össur and UNYQ:

Customized prosthetics and orthotics: Companies such as Össur and UNYQ use 3D scanning and printing technologies to create individually tailored prosthetics.

Impacts:

Economy:

Market opportunities and growth: Companies that successfully implement batch size 1 can tap into new market segments and differentiate themselves from competitors.

Higher added value: Customized products can achieve higher prices, which can lead to increased profitability.

Environment:

Reduction of waste and resource consumption: Since products are only manufactured to order, fewer materials are wasted and less inventory is held, leading to a reduction in the ecological footprint.

Sustainable materials and production techniques: Companies could increasingly rely on sustainable materials and production processes to minimize environmental impacts.

Society:

Better care and healthcare services: In medical technology, customized solutions can improve patient care and increase the chances of successful treatments.

Employee qualifications and jobs: There will be increased demand for well-trained specialists capable of manufacturing and maintaining highly specialized, customized products, supported by process-reliable software such as DOQ.

Consumer behavior and expectations:

Higher customer expectations: Customers will expect a wider selection and higher quality of products that precisely meet their needs.

Influence on brand loyalty: Companies that offer customized products and services can build stronger customer loyalty.

It’s important to note that the successful implementation of batch size 1 can also come with challenges, such as higher investment costs in software solutions and manufacturing equipment, as well as the need to employ a well-skilled workforce. Nevertheless, the benefits in terms of customer satisfaction, market differentiation, and environmental impact will contribute to this paradigm shift gaining traction in many industries.

Stay ahead of the curve with us and discover how the fusion of digitalization, automation, standardization, and customization is shaping the future of production. We look forward to hearing your opinions and ideas on this fascinating topic.

With our customer Wavelight from the Alcon Group, we have just created the technical prerequisites to realize production of their eye correction lasers in batch size 1 starting in 2025.