What is a Focused Factory?

A focused factory is a highly efficient manufacturing facility that is designed to create a limited set of products at minimal cost and a high rate of throughput. It also tends to operate with a relatively high proportion of fixed costs.

Characteristics of a Focused Factory

The typical focused factory is designed to produce a narrow range of products in high volume, and may have a substantial fixed asset base. It may also be a relatively small facility. Given these characteristics, a focused factory is likely to have a fairly large amount of fixed costs, which means that it will lose money unless it can produce in high volume; lower volumes will drop the facility below its breakeven point.