How to offer low cost custom CNC machining part to customers?

We offer custom CNC machining, turning, drilling, tapping, grinding parts from China made by material of steel, aluminum, titanium, brass, alloys, etc.

To offer customers low-cost custom machined parts, we must ensure our pricing remains competitive. The key to achieving this is to reduce and control our own production costs as a Chinese CNC machining parts manufacturer.

Controlling the overall cost of the machining process is a complex issue, as it includes production costs, management costs, and financial costs. Among these, production costs are the most significant and complicated, requiring stricter control.

Cost reduction for custom CNC machining production can be considered from the following aspects:

1. Raw Material Control: Accurately calculate the dimensions of raw materials to avoid waste. The quality department should enhance the work of incoming inspection personnel, strictly checking against raw material drawings to prevent excess or insufficient materials. Excess materials can increase processing and direct material costs, while insufficient materials may lead to product quality issues. If raw materials do not arrive by the specified delivery date, it can affect normal production progress, resulting in increased costs due to overtime.
2. Process Control: The engineering department should develop processing techniques based on actual workshop machinery and external market machines, utilizing modern technology (CNC) to eliminate unnecessary processes. For example, some marking and locating holes can be integrated into CNC processing. Optimizing the process arrangement can reduce processing difficulty and improve yield. Properly designing efficient tooling can also achieve these goals. Without innovation or reform, it’s difficult to adapt to the development of the company’s productivity.
3. Turnover Optimization Control: Design appropriate turnover processes for semi-finished products on-site. For instance, making boxes to separate custom parts can prevent damage during turnover and facilitate counting. Insufficient personnel for material handling (forklift) can disrupt normal production, leading to delays in transferring processed materials to the next stage, which is a waste. Idle machines also increase costs (basic employee wages).
4. Equipment Control: Properly increase the equipment for long-term products to avoid or reduce outsourcing.
5. Personnel Production Control: Adjust based on product characteristics. For batch products, implement piece-rate pay for processing personnel, while for small or non-batch products, experimental tooling or temporary repairs can be assigned to those on a salary basis. Batch products can utilize assembly line processing, eliminating the need for each worker to have their own tools. As quality improves, employees’ skills can be fully utilized. If the increase in workers’ income doesn’t proportionally match their workload, it can directly impact their motivation, leading to unfulfilled orders and hindering company growth.
6. Tool Cost Control: When the inventory of commonly used tools (e.g., external, internal, standard metric, and imperial threads) falls below a certain level, a direct application can be made, saving time for the production department and preventing delays. For less commonly used tools, the warehouse should notify the production and engineering departments, with production filling out purchase requests. The engineering department is responsible for tool selection and upgrades. Tools are often purchased when they are out of stock. If tools are quickly restocked, it may not affect production, but some tools require longer procurement times and may need approval, causing delays that also represent a cost.