What is Custom Manufacturing?

Custom manufacturing is the process of manufacturing product lines or products based on a consumer's unique requirements. Each line or product may vary by finish, design, material, or a set of other options.
It is the antithesis of mass production, which is the process of making identical products in large quantities. This form of production allows manufacturers to produce or create any type of item, with the exact design specifications determined by the customer.

There is a clear distinction between the two forms of production based upon the costs involved, lead times, purpose of production, and the business model. In addition, the actual product plays a big role in the type of manufacturing used. Examples of products that would fall under custom manufacturing include furniture, military projects, metal signage, and architectural structures. Those that would fall under mass production include cars, screws, computer chassis, and HVAC ducts for example.

Custom production is often classified as a branch of lean manufacturing. Under this system of production, factories devote resources solely to processes related to manufacturing a product, with the aim of minimizing equipment and waste, and turning inventory over as quickly as possible. To this end, lean manufacturing relies heavily on client orders rather than sales forecasting. Essentially, one can call it “Just-in-Time” manufacturing; where products are made just in time to meet required shipping dates.

To manufacture goods to the specific set of specifications requested by the customer, a factory often uses special production systems rather than standard assembly lines. It relies on custom--built machines, and equipment that can be configured to meet different customer needs. For example, the factory may incorporate custom dies or molds to produce a specific product line, and then dispose of those molds and dies in favor of new ones when the next order comes in.

Though it may not be the best option for all manufacturers, custom manufacturing often requires a relatively high initial investment in equipment and machines. This, in turn, results in higher cost per unit of the product. In addition, factories must be able to keep up with frequent changes in techniques, materials, and equipment.