Lot size 1 does not sound like the most exciting topic at first, right?
We tell you why you need to know more about lot sizes and why they will be part of your everyday life pretty soon.
Simple and to the point.
Lot sizes in a nutshell
A lot size refers to the amount that is produced before you have to re-equip to produce a new product.
Small lot sizes:
In case the lot sizes are small, you have to re-equip the machines more often.
As soon as you have to re-equip more often, the time to produce to finish the production of the good increases.
The throughput time refers to the time, a product needs to run through all the production steps. From the beginning, to the finished product.
If you have high throughput times, it costs you a lot of time.
In a production, time is money. So this can get really expensive.
Therefore a lot of companies try to avoid smaller lot sizes (individual products) and instead produce rather big lot sizes.
Big lot sizes:
Big lot sizes mean that the throughput time is lower.
Bigger amounts of pieces are produced and put in stock.
The problem: Higher storage costs.
Lot sizes – that counts
The smaller the lot size, the more often you have to change the equipment to produce a new product.
If you change to a new product a lot, you have to re-equip a lot.
This increases production time and costs.
The consequence: The end product is individual, but usually way more expensive.
The bigger the lot size, the less often you have to change the equipment to produce a new product.
The machines need to be re-equipped less often.
This decreases production time and costs.
The consequence: The end product is a mass product and usually cheap.
However, it results in high storage costs.
Alright… You still there? Good.
What does lot size 1 exactly mean?
You can refer to lot size 1 if companies are capable of producing individual products but without having high costs when re-equipping their machines.
This means: Individual products, available fast and for a cheap price for both manufacturers and end customers.
Sounds impossible, right?
How should they make it happen?
In order to depict lot sizes better, we would like to paint you two extremes.
If you go shopping, you can either go to a big store with a big selection and cheap prices OR you can go to a tailor and get bespoke clothes.
Big store – big selection– cheap clothes – big lot size
Here we have a big production and a lot in stock.
Clothes are produced in the same style but in different colors. Usually, the design repeat each year.
The chance that something fits immediately, is rather low.
You need to take quite some clothes with you in the changing cabin and try them on in different sizes.
Or you order a variety of pieces and sizes directly to your home.
As an end customer, it costs you a lot of time to choose the right clothes.
As manufacturer, the production of these clothes costs you barely re-equipping time.
Mass production covers a big group of customers.
Tailor – exclusive selection – expensive bespoke clothes – small lot size
The tailor takes a lot of time to measure you by hand.
He notes every measurement and helps you in selecting the right fabrics.
You decide what your clothes look like and how they should feel.
They are individually tailored to your taste.
The tailor has high throughput times and takes time for each customer individually.
From measuring the customer by hand to the finished product – a lot of time passes.
The clothes are then individual and unique. However, of course more expensive.
The best thing would be having the possibility of buying clothes that really fit, for a rather small price and without having to try them on.
Well, that is the principle behind lot size 1.
Lot size 1 for clothing – what does it look like?
Lot size 1 can only work properly, if the store is designed in the sense of a smart factory.
Step 1: Go inside the 3D Body Scanner and get measured completely automatically.
Step 2: Choose your style and clothes preferences at site.
Step 3: Get your individual clothes some hours later.
Advantages of lot size 1 for companies
Saves precious time and money
Reduced stock costs to a minimum
Increases customer satisfation
Offers everybody exactly what he needs
Connection of measurements to digital clothes
Size recommendations for customers – fast and uncomplicated
Reduces manufacturing costs
Increases hygiene (especially in the underwear and bathing suits area)
Advantages of lot size 1 for end customers
Never again standing in line in front of changing cabins
You do not have to try on one piece in different sizes in order to know whether it fits you or not
You never have to try on clothes somebody else already tried on before you
Frustration-free shopping in stores and online
Of course, there are also other areas than the apparel industry where the principle of lot size 1 can be applied.