What is the market price for precision machining costs? How to think about processing costs and how to reduce costs

When considering a request for precision machining, polishing, cutting, or grinding, we are concerned about the cost of precision machining.

Here, we will explain the cost of precision machining in general, the basic concept of estimation, and the cost of precision machining in TDC.

Cost market of precision machining

In order to know the cost of precision machining, it is of course necessary to know how much each processing manufacturer and processing company charges for precision processing.

Costs often vary by vendor

“Precision machining” requires high precision from microscale to nanoscale.

Such precision processing requires not only advanced technology and experience, but also various processing equipment.

Therefore, it can be said that the contents of estimates and costs vary greatly depending on the manufacturer and each processing company.

It is difficult to explain how much the cost market is

In addition, precision machining involves factors such as the processing accuracy, the material to be processed, and the complexity of the shape. Yes.

However, for people and companies who actually request processing, “I want to request precision processing, but I don’t know how much it will cost, so it’s hard to ask.” I think there are many things you want to know.

When considering the cost of precision processing, it is important to clarify the “estimated cost”

“As a result of keeping the price low, we were unable to guarantee accuracy and quality.”
“We were able to perform high-precision processing by spending money, but the cost was higher than expected.”
“As a result of entrusting the processing as instructed by the supplier, we were not able to achieve what we expected.”

Either way, you end up wasting time and money.

In order not to fail in requesting and ordering precision machining, it is important to first provide an estimate and clarify the cost.

Basic Concept of Cost Estimation in Precision Machining

In many cases, there are three factors that make up the estimated price for precision machining:

• material cost
• processing cost
• special processing fee

In other words, the “estimated amount” is generally calculated from the following.

• Determinants of Estimated Amount
• Estimated price = material cost + processing cost + special processing cost

In many cases, the processing cost will be higher.

Material cost

Material cost is the cost of the machined part itself. The more materials you procure, the lower the cost.

Manufacturing costs include fixed costs, which remain constant regardless of sales volume, and variable costs, which increase as sales increase.

Material costs are often affected by the economy, and because the transaction volume fluctuates, they fall under the category of variable costs. the price goes down.

The material cost is determined by the material mass per kilo unit.

For polishing and cutting, you buy a block of material and machine it down.

The material cost is calculated by multiplying the mass of the material by the unit price per kilogram of the material, not the size.

processing cost

The processing cost is the cost of processing the material, and is also called the processing fee.

Processing costs are generally calculated by multiplying the “processing charge”, which includes equipment usage fees and labor costs for workers, by the “processing man-hours”.

• Calculation formula for processing cost
  • Machining cost = Machining charge x Machining man-hours

processing charge

A processing charge consists of the following three elements.

• Initial costs, operating costs, tool costs, etc.
• Equipment running cost
• Personnel costs and management costs

In other words, machining charges tend to be higher when using the latest machine tools or when highly skilled workers are required.

The processing charge generally starts at 4,000 yen, but it varies greatly depending on the processing method.

Recently, there are more than a few cases where estimates are given for deliverables on a project-by-project basis.

Special processing cost

Special processing costs include the following surface treatment, heat treatment, and special processing (additional processing) related to finishing.

• Plating
  A processing that forms a thin metal film to enhance corrosion resistance and decorativeness.
• Painting
  Processing to increase corrosion resistance or add color using paint, etc.
• Polishing
  Processing that improves precision and aesthetics by polishing with a whetstone, etc.
• Surface hardening
  Processing that changes the chemical composition of the metal surface to improve wear resistance, etc.

How to reduce the cost of precision machining?

When requesting precision processing, it is of course necessary to place an order with cost in mind.
Here’s how to cut costs in precision machining.

keep initial costs down

One of the factors that increase the initial cost is the drawing.

Of course, drawings are required for machining, and in most cases, the cost of creating drawing data is included.

If the drawing data can be created in-house, the initial cost can be reduced.

In that case, creating drawings that reduce the amount of processing and cutting will lead to cost reduction.

Review material costs

If you bring your own materials, there is no material fee.

However, it should be noted that a larger material than normal parts is required because it requires materials that include grinding and shavings.

Flow up to the results of estimating precision processing costs in TDC

1. request for quotation
2. hearing of details
3. quotation submission
4. recieve a PO and start the process

Please feel free to contact us using the chat or inquiry form for confirmation of specific cost band market prices and consultation on quotations.

Contact TDC for consultation on precision machining costs!

So far, we have explained the costs and estimates for precision machining.

The price varies greatly depending on the accuracy, material to be processed, processing method, and the number of productions, and the calculation details vary greatly depending on each processor and company.

TDC also accepts consultations on cost cutting and competitive quotations. If you have any problems with precision machining, please feel free to contact us.