Effect of producing varity of small volume products, Business Management

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Effect of producing Varity of Small Volume Products:

As you know that each new variety of products will require new set-ups for all processes involved and hence consume precious time. As described above even at the optimum of efficiency each new product type will minimal of  22 minutes in total to come out with final product which is 7 minutes more than normal one product setup. Even if each time new product set-up are synchronised as is done for single product then also efficiency will be much lower than single variety production and hence if such changes does not monetarily compensates for the time lost is does not make sense to go ahead with it.


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