Disposable Factories are short-lived labor intensive and dedicated facilities designed for temporary mass production. Quantifying the dollar value of the disposable factory approach requires the option value of the flexibility it provides, given the risks of both near-term demand variability and long-term market viability.
The advantages to using disposable factories include –
- Optimization of production with a low-cost and high-throughput.
- Manufacture with fixed specific capacity than to adjust capacity to a range of products.
- Build only for the visible future.
- Jump in and out of fast-moving markets.
- Lean capital for the duration of operations.
- Designed to meet environmental & safety standards is easier.
