Fertigungstiefe (EN)
ConceptThe proportion of in-house production in the total product
Definition
The manufacturing depth describes how many production stages a company performs itself. It indicates to what extent a company realizes value-adding stages in its own operations. A high manufacturing depth means more control over the production process, but also higher investment costs.
Example
- High manufacturing depth: An automobile manufacturer that processes raw materials, manufactures components itself, and performs final assembly
- Low manufacturing depth: A company that only performs final assembly and purchases all components
Architecture
flowchart TD A[Raw materials] --> B[Intermediates] B --> C[Components] C --> D[End product] style A fill:#f9f,stroke:#333,stroke-width:2px style D fill:#f9f,stroke:#333,stroke-width:2px subgraph High manufacturing depth A --> B --> C --> D end subgraph Low manufacturing depth A -->|Purchased| C --> D end