A microfactory either refers to a capital-light facility used for the local assembly of a complex product or system[1] or a small (normally automated) factory for producing small quantities of products.
The term was proposed by the Mechanical Engineer Laboratory (MEL) of Japan in 1990 and has recently been used to describe the approach of manufacturers like Local Motors and Arrival.
Typically the manufacturing processes of microfactories take advantage of digital fabrication technology such as 3D printing and CNC machines in order to accomplish this.
At least one proposed microfactory is being designed to make many of its own parts, i.e., a partially self-replicating machine.
[4] The microfactory's main advantages are saving a substantial amount of space, energy, materials, time, and upfront capital costs.