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Microfactories in Japan: The Future of Mass Customization and Agile Manufacturing

Japan once taught the world how to build big. Long assembly lines. Massive factories. The Toyota Production System became a global blueprint. Bigger floors meant faster output. Efficiency came from scale. That model shaped modern manufacturing. And now comes the twist. Japan is walking away from size. The same country that mastered scale is choosing small. Across Japan, factories are shrinking. Not in ambition. In footprint. Microfactories are taking shape. These are compact, highly automated facilities designed for high mix, low volume production. They do not chase millions of identical units. They handle variety. Different models. Small batches. Custom orders. Speed matters more than volume here. This shift is not about cutting costs. It is about staying alive. Labor is scarce. Supply chains break easily. Demand changes fast. Microfactories answer…