How to Build a CNC Machine Shop - Part 2 (Quoting - Learn the Secret)

Summary

In this video, Titan from Titans of CNC discusses the art of quoting for CNC machining, emphasizing its importance in securing work in a competitive industry. He walks viewers through a detailed example of quoting an aerospace project, explaining the considerations involved, such as part analysis, material costs, and labor rates. Titan highlights the significance of precise time estimation for operations and the impact of quoting the right price, factoring in setup, programming, and additional costs. The video encourages machining professionals to refine their quoting process to stay competitive and succeed in the industry.

Takeaways

• 😀 The importance of branding and marketing in setting your CNC machine shop apart from competitors is essential for success.
• 😀 Quoting for a project is an art, and offering a good price combined with a great reputation creates a winning formula.
• 😀 Understanding the part you're quoting is crucial; analyzing the model, tools, and operations involved helps you accurately estimate costs.
• 😀 Experience in machining allows you to estimate the time it will take for each operation and create more precise quotes.
• 😀 Adding handling time for tasks like washing and packaging parts is essential in your quoting process to avoid losing money.
• 😀 Properly calculating the total time for programming, setup, inspection, and machining ensures you're accounting for all aspects of the job.
• 😀 Material and processing costs should be included in the quote, and adding a markup on outsourced processes like anodizing is common practice.
• 😀 Understanding raw stock costs and calculating material usage is necessary for providing an accurate quote for material expenses.
• 😀 Once all time and material costs are calculated, using an hourly rate allows you to determine the labor costs for each part.
• 😀 Analyzing the competition and adjusting your quote based on your efficiency and reputation is crucial to secure the job without underpricing yourself.

Q & A

What is the importance of quoting in the CNC machining business?

Quoting is crucial in the CNC machining business because it ensures that a company can remain competitive while maintaining profitability. A good quote combines an accurate assessment of time, labor, and material costs with a strong reputation, leading to long-term success.

How does Titan approach quoting a job for CNC machining?

Titan approaches quoting by first analyzing the part's design and considering various factors such as material type, tool sizes, and machine setup. He breaks down the entire process from programming to machining, setup, and inspection, factoring in all costs and time estimates to determine a fair price.

What role does experience play in quoting accurately?

Experience is vital in quoting accurately because it allows the machinist to anticipate potential challenges, estimate time requirements, and calculate costs with precision. This ensures the job is profitable and that all steps, such as programming, setup, and quality control, are factored correctly.

Why does Titan factor in a 15% markup on material costs?

Titan adds a 15% markup on material costs to account for his time and effort in sourcing and managing materials. This ensures that the business covers all associated expenses beyond the raw cost of the materials themselves.

What is the total runtime for producing 100 parts in Titan's quote?

The total runtime for producing 100 parts is 2,540 minutes, which includes the 1,700 minutes for machining the parts and the 840 minutes for setup, programming, and inspection.

How does Titan calculate the labor costs for a CNC machining job?

Titan calculates the labor costs by determining the total time required for programming, setup, and machining, then multiplying that by the hourly rate for CNC machining ($75 per hour). The total labor cost is then divided by the number of parts to arrive at the per-part labor cost.

What is the final cost per part after all expenses are factored in?

The final cost per part, after including labor, material, and anodizing costs, comes out to $8.79 per piece for the 100 parts.

Why does Titan consider dropping the price in his quote?

Titan considers dropping the price if the competition is strong or if he feels that a lower price might give him an edge in securing the job. He balances his costs, the market conditions, and his confidence in his ability to deliver the job efficiently.

What does Titan mean by 'lifting up our youth and our shop' in the context of CNC machining?

By 'lifting up our youth and our shop,' Titan emphasizes the importance of investing in the future of the CNC machining industry by mentoring younger machinists and improving shop capabilities. This helps ensure the industry's growth and competitiveness on a global level.

How does Titan assess whether his quoted price is fair?

Titan assesses whether his quoted price is fair by comparing his own capabilities and efficiency with the competition. He considers the speed, quality, and reputation of his shop and determines whether the price reflects the value of his work while being competitive in the market.