What Are the Two Types of Small Scale Production?
Dec 12 2025
When you think of manufacturing insights, practical knowledge gained from how goods are actually made, not just theorized. Also known as production wisdom, it’s what you learn when you walk into a factory that’s been making bricks, snacks, or circuit boards for decades—and ask how they stay alive. It’s not about fancy reports or corporate presentations. It’s about the guy who figured out how to cut plastic waste by 40% using a $200 machine. Or the family-run plant in Surat that outsells big brands because they ship orders in 48 hours. These are the insights that matter.
Small scale manufacturing, producing goods in limited batches with local labor and minimal automation. Also known as cottage industry, it’s the backbone of India’s economy—not the flashy factories, but the ones tucked behind roadside shops making soap, pet tags, or custom furniture. These businesses don’t compete on volume. They win on speed, customization, and trust. Meanwhile, food processing units, factories that turn raw crops into packaged snacks, sauces, or protein bars. Also known as food production facilities,> are quietly becoming the most profitable corner of manufacturing. Why? Because people want shelf-stable, high-margin snacks—not fresh produce that spoils in a week. And then there’s electronics manufacturing, the making of phones, chips, and gadgets, now shifting fast from China to India. Also known as electronic assembly,> India’s government is pouring billions into this, not because it’s easy, but because it’s urgent. The same goes for chemical production, the large-scale creation of dyes, fertilizers, and pharmaceutical ingredients. Also known as industrial chemistry,> where India ranks sixth globally, but still loses out on pricing power because it doesn’t control the raw materials.
What ties all this together? Control. The small manufacturer controls their supply chain. The food processor controls their margins. The chip maker controls their yield. The chemical plant controls its certifications. And the ones who thrive? They didn’t wait for big investors. They didn’t chase trends. They solved one real problem—over and over—until it became a business. You’ll find those stories here: the brick maker who cut energy use by half, the startup that turned leftover grain into protein bars, the engineer who fixed a chip defect using a smartphone camera. No fluff. No theory. Just what actually works on the factory floor, in the lab, or behind a counter in a small town in India.
Understanding the three main types of manufacturers is crucial for anyone interested in production and industrial dynamics. This article delves into the categories of manufacturers: make-to-stock (MTS), make-to-order (MTO), and engineer-to-order (ETO), each with its unique processes and challenges. We explore how these types cater to different markets and production efficiencies, offering insights into choosing the right manufacturing approach. Learn about interesting facts and tips that can guide potential business decisions in the manufacturing sector.
Small scale production is a fascinating process that transforms ideas into tangible goods on a limited scale. This article delves into the key aspects of small scale manufacturing, exploring the steps involved, from idea conception to final product delivery. It offers practical insights and tips for navigating the challenges of limited production, while highlighting unique aspects that make small scale production a dynamic and engaging field. Understanding this process is crucial for aspiring entrepreneurs and small business owners aiming to enter the manufacturing sector.
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