Top Powerful Factors that can Impact Manufacturing Costs – II

CNC machining is a process, which is involves lots of considerations such as materials, tolerances, sizes, shapes, etc. All these factors contribute to the prices in their own way. In the previous post, we have discussed a few important factors that may lead to high manufacturing costs. In this post, we will be discussion another set of factors that usually contribute to high manufacturing costs.

What are the Major Factors that Impact the Manufacturing Costs of CNC Machined Products?

Apart from those explained in the previous post, there are a number of other factors involved in the manufacturing costs. Understanding these factors will help you a lot in the earlier planning stage of availing the machining services. Here are some crucial factors that count:

1. Lead Times: The lead times refer to the time required to manufacture and make the product available to the customer. Thus, in case if one has an urgent requirement of a product, the production run needs to be time efficient. This can further have a major impact on the cost of manufacturing of the particular product. The manufacturing cost of the time-efficient production run is considerably higher compared to that of a general mass production run. CNC Machines are designed for long-term operations or say 24 hours operations, and provide quick turnarounds. On the other hand, these capacity losses are considerably reduced in longer turnaround times.

2. Order Volume: The quantity of products required is inversely proportional to the cost. This means that when you have a requirement of smaller order volume, then the manufacturing cost is high. On the other hand, when you require a higher quantity of products, then the resultant cost of manufacturing is significantly low. The reason behind this inverse proportion is that running low volume production lines is not of much benefit to the manufacturer. 

3. End Product Quality: The quality of the end product is extremely important for a customer, as well as a manufacturer. Thus, manufacturers focus on the quality, by implementing several quality control methods. Also, they make use of quality materials to make the products durable. The end product is an exact match to the specifications given by the customers. All this leads to increased manufacturing costs. However, investing in a good quality product at an earlier stage will always save you from additional maintenance costs, as well as time. 

4. Equipment and Facility: Just having the required skill, and knowledge is not sufficient for manufacturing precision parts. For that, one needs to have a proper, advanced, and state-of-the-art equipment. The advanced equipment has a capability to deliver the best manufacturing experience, owing to the vast range of opportunities that it offers. These state-of-the-art, and technologically advanced equipment are capable of manufacturing high-quality products, and meet all the specifications and manufacturing needs given by the customers. However, these advanced machinery is purchased by the manufacturers at higher rates. Thus, the products manufactured using these advanced equipment have a higher cost.

The factors that you learned in this and the previous post will help you get a clear picture of what makes a difference in the manufacturing costs of CNC machined parts. When you consult experts and experienced machining service providers, then they can help you get your products at competitive costs. BDE Inc. is one such expert CNC machining service provider in the US, which has a vast experience in manufacturing CNC machined products for various industrial clients. The company can provide you machined parts at competitive rates. 

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