Commercial Production Guide

Capacity Expansion: Compare the Options Neutrally

Capacity can grow four ways: add another machine, buy a larger machine, improve the workflow, or reduce cycle bottlenecks. Each costs different money and different effort, and none is automatically right. This guide lays out the neutral comparison framework.

Category: Scaling Up

Frequently Asked Questions

Is adding a machine always the best expansion?

No. Workflow improvements and bottleneck fixes often deliver the same throughput at a fraction of the cost and risk. Compare on the same axes before choosing.

What is the risk of one larger machine?

Concentration: when one machine is down, the whole operation is down. Two machines spread the risk but duplicate surrounding work. Both trade-offs belong in the comparison.

How do I compare options without perfect data?

Use ranges and label them as estimates. The point of the framework is that every option is judged with the same honesty, not that the inputs are precise.

Key Takeaways

  • Four neutral options: another machine, a larger machine, workflow improvement, or bottleneck reduction.
  • Compare on capital cost, ongoing cost, risk, lead time, operational fit and payback, with no prescription.
  • The workflow-only option belongs in every comparison; the cheapest capacity is often already paid for.

Related Guides

Continue through the Commercial Production Center with these related guides.