How to Estimate the Cost of Manufacturing a Product Using a Per Unit Formula
15 February, 2021
July 24, 2016 at 8:15 am
To manufacture a product you first need molds. If you don’t know how or where to get one made don’t sweat, we do!
There’s much more to the manufacturing process than getting all the raw materials and tools in a single place and creating a production line. If it was really that simple, then everybody would have their own production lines in their garages! In theory, while mass manufacturing might look very simple and easy, it actually is not. This is because there are tons of steps involved in order to manufacture even a small item like an iphone case.
Therefore, if you are thinking of setting up your own manufacturing line sometime in the future, you’ll benefit from reading this. While we recommend outsourcing to professionals (like us!) who know the manufacturing process inside and out and have partners around the globe who run factories with cutting edge technology, by knowing the process you will have a good grasp of what happens when, and how long it might take to go from concept to large scale production of your next idea or invention.
One of the first things you need to do is research the idea or the product that you are thinking about launching. Many people seem to overlook this step, thinking it is not that important, but it is actually crucial. This is because if a sufficient amount of research is not done prior to producing a product, it can be doomed right from the beginning.
Therefore, in terms of market research, you will need to go out and talk to your target customers. Is there a need for your product idea? Who are your competitors? Has someone already created what you thought was an original idea? In addition, it would also be a good idea to get an opinion from experts in your area. We have helped clients with many design projects, so feel free to ask us for advice on your project (we’re happy to sign an NDA first). Based on the advice you get, you may want to make some minor tweaks before getting the product on the road.
After positive feedback has been received from market, it’s now time to begin developing the product. This means that the specifications would be discussed in more detail. In addition, you would also decide what features the product will have included. The design would also need to be looked at in detail in order to make sure it appeals to your target customers.
After finalizing all the product details, your idea will be designed in a CAD program and sent for the production of a prototype. Since this is being done on a test basis, it would only be produced in small amounts.
In this stage, CAE (Computer Aided Engineering) and 3D printing is often used. These technologies allow high quality prototypes to be produced cheaply. Once prototyped the product will be sent to you for approval. After that, you make any necessary changes and approve the product for mass production.
After the product becomes more or less finalized, it would then be released into the market. However, this would only be done on the basis of test marketing. This means that the product would only be available to a handful of people. The sole purpose of getting this done is to garner the reaction of the people, getting feedback on how well the product works for its specific purpose.
If the product has been found to be favorable in test marketing, then it would be sent for mass production. This means that molds for your product will be made, and the product will be produced in large amounts in order to be distributed throughout the whole country.
After the production is done, the products are subjected to an inspection process. If the manufactured products successfully pass inspection and are seen to be without flaws, they are then sent for shipment and delivery.
Some people skip to the bottom of articles to see what the summary is. If that’s you, welcome! 🙂 To be honest you don’t need to know how to get a product manufactured. All you need is the idea. Our clients are frequently surprised how easy it is to bring their idea to us, have it designed, prototyped and mass produced, all in the same company!
While mass production can be expensive, we also have a service helping our clients run crowdfunding campaigns to get the start up capital needed to get your idea out to the world! Get in touch today and we’ll answer questions you have about the production process.