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There is almost no reason to limit the manufacturing size unless you are paranoid about burning through scarce resources and you think you'll forget to limit the amount of resources in the input hopper. Choosing this option lets you choose the name of all the items made in the factory run and also lets you set the manufacturing size limit. When making a schematic, you usually need to using a specific crafting tool and be standing next to a crafting station (or your crafting droid) in order to get the "make manufacturing schematic" option. The same applies for subcomponents the serial numbers must be exactly the same. They have to be exactly the same, down to the specific name. A common mistake is to make a schematic with one resource you have on hand, and then try to run it through the factory with another resource.
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These items may be for sale or to be used to create other items some schematics require items created in the same factory run (identical serial numbers). You can use a factory to manufacture crates of identical items from a Manufacturing Schematic.
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