Why Production as a Service?
Our unique offering to enable Production as a ServiceKey challenges and requirements for manufacturing
Value proposition
Fast-changing market environment requires producers to improve their value proposition (cost, quality, time)
- Increase capacity utilization
- Automate production processes
Resilience
Uncertainties in global supply chains and trend towards local production yield in investment and cost risks
- Decentralize production networks
- Realize local production beyond low-cost countries
Sustainability
Growing pressure from customers to produce sustainably requires producers to redesign their operations
- Share new production equipment
- Adapt production planning towards circularity
The solution: Production as a Service
A highly flexible factory, owned by external
investors and shared by multiple users
External investor
Provides funding and owns factory
Factory
Produces multiple products cost-efficiently
Multiple users
Use infrastructure on pay-per-use basis
Financial Transformation
Smart structuring enables third
parties to share operational risk
and provide funding
- Access external funds by creating a new asset class for investors
- Reduce risk of owning machinery / equipment
- Diversify financing sources and improve financing conditions
Flexible Production
Factory produces multiple products
efficiently and can adapt to
volume changes quickly
- Produce small lot sizes financially efficient
- Master the complexity of your own product portfolio
- Enable time neutral changeovers and eliminate cycle time losses
Sharing
Multiple users share infrastructure
on pay-per-use basis,
variabilizing their fixed costs
- Optimize utilization of production equipment and reduce costs per part
- Improve resource sustainability
- Reduce dependency on single customers
Achieving Production as a Service is a journey
Four maturity levels towards Production as a Service
target picture – each represents a project archetype
Master own production program
Flexible Production
Open production to in-/external
Sharing
Flexible Production
Reduce burden of ownership
Financial Transformation
Flexible Production
Setup Production as a Service
Financial Transformation
Sharing
Flexible Production
Dimensions from the user's perspective
- Asset Ownership
- Production cost
- Utilization risk
- Plant operations
- IP / knowledge sharing
Own production
- OEM
- Upfront invest & running cost (CapEx)
- OEM
- OEM
- No
Contract manufacturing
- Contract manufacturer
- Upfront invest & pay-per-part (CapEx & OpEx)
- OEM
- Contract manufacturer
- Possible
Production as a Service
- Third-party investors
- Pay-per-part
(OpEx) - Third-party investors
- OEM or external operator
- No
We tailor our solution according to your needs
Production as a Service comes with its own complexity and challenges. We thereby act as an orchestrator that connects the necessary stakeholders and designs a business model which is profitable for all parties. Based on risk adjusted financials and a highly automated production layout, our offering further transforms a new factory into an investable asset.
Our Project Approach
Initiate project
- Starting point and project objective
- Investment teaser light
- Technical, commercial, and financial feasibility assessment
Develop target picture
- Operating model
- Business case
- Technical concept
- Multi user search (if necessary)
Conduct due diligence
- Technical due dilligence
- Financial due dilligence
- Commercial due dilligence
Implementation
- Set up Special Purpose Vehicle (SPV)
- Set up project management to steer implementation
Do you have further questions?
We answer your most asked questions about Production as a Service and FlexFactory.
