How to Evaluate CNC Machining Quotes: Understanding the Factors Behind Transparent Pricing
How to Evaluate CNC Machining Quotes: Understanding the Factors Behind Transparent Pricing
Date：2024-03-21 16:00
Precision manufacturing relies heavily on CNC machining, an extremely accurate and efficient process for creating complex parts. Using a computer to control the machine tools of a rigged, automated workshop, the operator forms the desired part. This operation occurs with such a level of detail (almost as if at the nano scale) that the CNC output has proved itself to be not only accurate but also reliable in producing the same kind of part over and over again when needed. And yet the quote that one receives for a job requiring CNC machining might as well be written in Latin (though we are not accusing the ancient Romans of being comic). Indeed, if you think of the document as comic, you are more likely to laugh than to cry. This being said, we have for some time been trying to make sense of this powerful, necessary, but obscure document that is the CNC quote.
For example, take a project called for the 6061-T6 aluminum alloy, which fetches around RMB 25 per kilogram, and a required part that weighs 2 kg. The material cost is thus RMB 50 per part; for 200 pieces, that adds up to RMB 10,000. Now consider the operation costs for the CNC machines. These costs are generally calculated based on how many hours the machine is running. In our case, we assume it takes 2 hours to finish the machining process for one part; the machine runs at RMB 150/hour. The total for 200 pieces? RMB 60,000!
Let's consider a CNC machine that costs CNY 1 million, has a lifespan of 10 years, and a straight-line depreciation. The machine's cost would work out to CNY 100,000 per year, which is CNY 41.67 per hour, assuming 300 days a year and 8 hours a day. Also, to estimate the maintenance cost, we assumed it at CNY 10 per hour. So, added together, we had a cost of CNY 51.67 per hour for the operation of the CNC machine. That would work out to nearly CNY 10,334 for building 200 parts. Labor costs would add to that total. If we paid an operator CNY 40 per hour and the operator took 0.5 hours to machine one part, the labor cost would work out to CNY 20 per part.
A machine's power requirements while cutting a part depend on its efficiency and power rating. From the same formula that predicts necessary power to cut 1D, 2D, or 3D parts, we can derive the riveting power of a CNC machine. This formula is rather complex. Consequently, we can calculate a relatively efficient CNC machine, like the Haas EC-400 or EC-500, which are horizontal machining centers, at approximately $4.88 an hour to operate. That said, the same calculations using the same complex formula for a relatively inefficient CNC machine can yield costs of $49.55 per hour to operate. Thus, we have a savings potential of over $44.67 per hour with a relatively efficient machine.
Imagine that Company A incurs a total of RMB 40,834 for production—this amount covers everything from materials to machining time to equipment upkeep, labor, energy, and quality control. If Company A wants to achieve a profit margin of 20%, it would need to set its price for this project at RMB 49,000.8. If we divide this project price by the number of parts (200), we find that Company A's cost per part is RMB 245.
When it comes to CNC machining, the final price of the quote can hinge upon the tiniest of details. By better understanding the composition of CNC quotes, you can better comprehend their value (or the perceived value of CNC machining) and, thus, position them in a marketplace where they're often considered a comparatively high-value proposition.
For example, take a project called for the 6061-T6 aluminum alloy, which fetches around RMB 25 per kilogram, and a required part that weighs 2 kg. The material cost is thus RMB 50 per part; for 200 pieces, that adds up to RMB 10,000. Now consider the operation costs for the CNC machines. These costs are generally calculated based on how many hours the machine is running. In our case, we assume it takes 2 hours to finish the machining process for one part; the machine runs at RMB 150/hour. The total for 200 pieces? RMB 60,000!
Let's consider a CNC machine that costs CNY 1 million, has a lifespan of 10 years, and a straight-line depreciation. The machine's cost would work out to CNY 100,000 per year, which is CNY 41.67 per hour, assuming 300 days a year and 8 hours a day. Also, to estimate the maintenance cost, we assumed it at CNY 10 per hour. So, added together, we had a cost of CNY 51.67 per hour for the operation of the CNC machine. That would work out to nearly CNY 10,334 for building 200 parts. Labor costs would add to that total. If we paid an operator CNY 40 per hour and the operator took 0.5 hours to machine one part, the labor cost would work out to CNY 20 per part.
A machine's power requirements while cutting a part depend on its efficiency and power rating. From the same formula that predicts necessary power to cut 1D, 2D, or 3D parts, we can derive the riveting power of a CNC machine. This formula is rather complex. Consequently, we can calculate a relatively efficient CNC machine, like the Haas EC-400 or EC-500, which are horizontal machining centers, at approximately $4.88 an hour to operate. That said, the same calculations using the same complex formula for a relatively inefficient CNC machine can yield costs of $49.55 per hour to operate. Thus, we have a savings potential of over $44.67 per hour with a relatively efficient machine.
Imagine that Company A incurs a total of RMB 40,834 for production—this amount covers everything from materials to machining time to equipment upkeep, labor, energy, and quality control. If Company A wants to achieve a profit margin of 20%, it would need to set its price for this project at RMB 49,000.8. If we divide this project price by the number of parts (200), we find that Company A's cost per part is RMB 245.
When it comes to CNC machining, the final price of the quote can hinge upon the tiniest of details. By better understanding the composition of CNC quotes, you can better comprehend their value (or the perceived value of CNC machining) and, thus, position them in a marketplace where they're often considered a comparatively high-value proposition.
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