Alternatives to mass production

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Chapter 22 in Sustainable Consumption, Production and Supply Chain Management, 2021, pp 135-143 from Edward Elgar Publishing

Abstract: Manufacturing itself will also change. In addition to new technologies like additive manufacturing, a version of micro factory retailing could become one of the dominant business models for the supply and use of motorised personal mobility and other goods and services. MFR would be based on networks of small dispersed, combined assembly, retail and aftercare or lifetime management (e.g. maintenance and repair, parts supply, upgrade, vehicle management and takeback) facilities that could operate car use under a product-service system (PSS) whereby ownership is retained by the company and users pay for their use. About 70-80 million cars are produced worldwide each year, a practice that is clearly unsustainable. In the longer term, if car making is to survive, then all car manufacturers will have to move towards a business model closer to that of low volume manufacturers. Lower volumes would be produced, but the business would survive by helping keep the cars on the road after the initial sale, extending the life of the automobile. The inherent flexibility of small-scale manufacturing provides better customer care, as well as shorter lead times, and late configuration. In addition, this model builds stronger worker commitment to the product and to customers. This results in more satisfying work for staff and is likely to result in better quality levels with all the benefits this entails. It also builds higher skill levels in local communities as people are trained locally in these technologies.

Keywords: Business and Management; Economics and Finance; Environment; Sustainable Development Goals (search for similar items in EconPapers)
Date: 2021
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