Currently, many businesses have chosen a large size factory model to produce on a large scale instead of choosing small factory designs. This form has certain advantages, but every production model has its limit and so is the large scale production model. Let's find out what are the advantages of a large size factory.
Advantages of a large size factory
1. Large size factory increases productivity
In contrast to the small factory design model, the large scale production model requires a large size factory area to allow sufficient space for the use of machinery. Each manufacturing industry needs different types of specialized and modern machines for each stage, so the allocation of production areas is essential. However, depending on the industry and the budget of each enterprise, the large size factory model will work.
2. Large size factory increases work efficiency
In large enterprises, the working model will be divided according to specialization, with each individual in a fixed and intensive position. Therefore, a large size factory is essential to making the best use of workers' work capacity. For SMEs, it is necessary to optimize manpower and production space to meet the actual conditions of the company with a large size factory.
3. Large size factory saves production costs
The management and distribution costs per unit of production in a large enterprise will be much less. Interest rates, bills and other expenses are always the same, even the factory is big or small. Therefore, the same amount of spending is distributed on a larger volume will result in lower cost per unit. And a large size factory allows enterprises to do that.
4. Large size factory with financial situation
A large size factory model can take advantage of the financial economy. With strong economic potential, a large business model can ensure credit facilities at low prices. Low credit costs reduce production costs. These are some of the advantages that a large scale enterprise has over a small scale enterprise. It can produce better goods at lower costs
Source: Large size factory