WrightGrid, a company that is part of local Somerville incubator Greentown Labs, is attempting to grow their operations as a startup company. Their core market is providing solar powered cellphone charging stations that can be deployed in remote areas without a well-developed electric infrastructure (You can see a couple photos of their charging stations in this segment on Greentown Labs).
One of the key challenges they are currently facing is thinking about the type of investment they want to make in production capabilities as they consider graduating. This raising an interesting question from an Operations Strategy standpoint for startups. Does it make sense to keep your operations small so you can do small batches or do you invest in larger production capabilities to increase batch size? While small batches have traditionally been viewed as “inefficient,” this could also give WrightGrid the opportunity to iterate multiple times on an order to improve the process. For example, if a company asked for 1,000 units and WrightGrid had to make them in batches of 100, it would give them 10 iterations to improve their process. On the other hand, in today’s market place with supply chains having to respond faster than ever, it could diminish their ability to meet the needs of clients and therefore keep them out of growing their client base.
This is especially challenging for a startup as they must rely on scarce resources to make an investment like this. One other consideration is to consider whether those resources would be better spent on some other aspect of the company. Making the Wright (or right) decision will certainly be important to getting them on the national Grid (or stage.)