CNC Processing Fee Calculation Formula

CNC processing fee calculation formula

Regarding the quotation method for CNC machining, how should the standards be determined? Currently, there are still many factories that rely on intuition to estimate. As long as there is a numerical error in the calculation, the profit that may have existed will disappear, and customers will not accept such an uncertain price.

Labor time fee is the basis of quotation

The core points of the quotation can actually be summarized as such a simple calculation formula, which is equal to the total working hours multiplied by the salary cost per unit working hour, and then adds the fixed cost portion that should be allocated.

We might as well use a specific example to illustrate the situation. For example, there is a part whose processing takes a total of 3 hours. If we set the hourly wage amount to 50 yuan for calculation, then the cost of labor alone is 150 yuan. This amount forms the starting point of the entire quotation process.

The wage per working hour is not a completely unified standard across the country. The specific amount depends on the technical level of the workers and the overall local wage level. For example, in the Pearl River Delta region, the wage per working hour of technicians can be as high as 20 to 30 percent different from that in inland areas. Therefore, when making a template, you must fill in the data according to the actual data in the region, and do not arbitrarily apply data from other places.

Don’t miss out on fixed expenses

Fixed expenses include machine tool depreciation, factory rent, water and electricity bills, and daily maintenance work. Take a vertical machine tool with a purchase price of 800,000 yuan. If the depreciation is calculated over 5 years, the depreciation cost alone will be amortized to 160,000 yuan each year.

Then, you have to add the rent of those factories and the cost of water and electricity. When you add up to this, the number is indeed not small.

If the center wants to arrange for three machine tools to be put into operation at the same time, then these fixed expenses need to be divided into each machine and each production order.

As long as any cost calculation is omitted, the direct consequence is that the product quotation will be relatively low, so that the more the quantity is made, the greater the amount of loss will be. When the financial accounting is performed at the end of the month, you will find that there is basically no profit in the entire process, and the work is in vain.

The price difference between different machine tools is obvious

For an ordinary vertical machining center with a specification of 1 meter, in terms of processing fees, the price range commonly seen in the industry is in the range of 40 yuan to 50 yuan per hour.

If the equipment is replaced by a machine tool type such as a five-axis linkage machining center or a large gantry milling machine, the corresponding processing man-hour cost may rise to the price level of 100 yuan per hour or even higher. Moreover, the higher the specifications of the equipment, the more expensive the corresponding unit processing unit price will be.

Therefore, before making a quotation, you must first confirm which machine is used for processing operations, because the time and cost standards corresponding to different machine tools are different. It is recommended to clearly list the prices of each grade of machine tools in the template to avoid confusion during the final reconciliation.

Material and workmanship add money

Compared with the processing degree of ordinary aluminum alloy and 304 stainless steel, the difference is very obvious. For special materials such as titanium alloy and copper alloy, the usual practice is to add an additional workload factor of 15 to 30% to the basic working hours. It is best to create a separate line of content in the template. This arrangement will make it easier for everyone to check the data.

If there are requirements for the manufacturing process, such as a deep cavity style, or the need for thin walls, and the pursuit of high-precision mirror effects, then some additional costs will have to be added to the quotation. When communicating with customers, explain those additional items very thoroughly and clearly, so that when the funds are settled later, it will not be easy to quarrel due to differences, and there will be no arguing.

Small but expensive

For those small machining centers with only two or three pieces of equipment, their fixed costs cannot be spread over a large enough number of orders, so the unit processing fee is much higher than that of a large workshop. When customers make price inquiries through multiple comparisons, this difference will immediately appear to be further amplified.

Before quoting, you need to calculate the number of equipment in your factory and the average monthly order volume. You must calculate the fixed costs correctly and then allocate them to each product. Since the larger the order volume, the less cost will be allocated to a single unit, so there is room for competition in the quotation.

The quotation template must be practical

Put the working hours, fixed fees, material coefficients, and process add-ons into one form. When a customer comes to inquire, it only takes five minutes to get a quote. There is no need to start calculations from scratch every time. This improves efficiency and reduces errors.

The template is not a dead thing, it will not stay there forever. If wages are adjusted, or equipment is replaced, or material prices increase, when these things appear, you must update the template immediately. Only by reviewing it regularly can you ensure that you can maintain a reasonable profit margin, and at the same time make customers feel that your quotation is transparent and worthy of trust.

Please tell me, when your factory currently provides quotations, does it fill in manually or use a fixed-format template? You are very welcome to describe in detail and share your actual practices and experiences in the comment area. If you think this content has reference value for you and is useful, please give it a like and forward it to your friends who are engaged in procurement work.