Machining Economics 4 Factors

March 18, 2013

The economics of precision machining can be understood with just 4 factors- Machining Cost, Material Cost, Tool Cost, and Cost of Non-productive Time (Set-up Costs).

Since material costs and nonproductive costs are constant, they are combined into the fixed cost line at the bottom.

Since material costs and nonproductive costs are constant, they are combined into the fixed cost line at the bottom.

The line labeled “machining cost” (which is made up of labor and overhead cost of time per piece) reduces with increasing speed by reducing operating (cycle) times.

The cost for tools, on the other hand,  increases with increasing speed. This is because tool life decreases with increasing speed.

Since machining and tool costs vary with the speed of operation, a minimum total cost occurs at a definite set of conditions for material, tooling and operating speed.

Purchasing improved tools  is one way to move the machining cost and total cost per piece curves to the right and down. As is adding coatings, improved metalworking fluids and their delivery, etc..

As long as the gain in speed and the resultant drop in cost to produce are larger than the cost of the improved tooling, or other process improvements, you can improve or further optimize the economics of your production.

Our industry has benefited greatly from the many improvements in tool materials, coatings,  metalworking fluids and design improvements.

Are you taking full advantage?

Graph and discussion based on AISI  Cold Finished Steel Bar Manual 1968

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Congratulations- 122 Women in Manufacturing Honored at STEP Awards by Manufacturing Institute.

February 7, 2013

When I started in manufacturing, “The Gals” were in the office- not the shop.

122  women who make a difference in Manufacturing today

122 women who make a difference in Manufacturing today

The inaugural group of 122 STEP honorees recognized by the Manufacturing Institute on February 5th in Washington D.C.  showed me that the times have changed and that there are many, many ways  that women can and do meaningfully contribute to manufacturing at their companies as

  • Plant and Production Managers,
  • Operations,
  • Engineers,
  • Technologists,
  • Process Control,
  • Regulatory Affairs,
  • Certified Welders,
  • CNC Machine Operators,
  • Weld Process Specialists,
  • Quality Control,
  • Health,
  • Environment,
  • Process Safety,
  • Chief Financial Officer,
  • Designers and Design Engineers,
  • Compliance Officers,
  • Chief Scientists,
  • Safety,
  • Quality,
  • Black Belts,
  • Training and Apprenticeship Instructors,
  • Manufacturing Lead,
  • Product Development,
  • Sales and Marketing,
  • Information Technology,
  • Lead Analyst,
  • Business Development,
  • Continuous Improvement,
  • Planning and Shipping,
  • Designer,s and Design Engineers
  • Information Security,
  • Assembly,
  • Legal and Corporate Affairs,
  • Systems Development,
  • President,
  • CEO
  • Owners

I am certain that I missed a few…

PMPA is proud to recognize our member and Vice President Darlene Miller, CEO of Permac Industries in Burnsville MN as one of this inaugural group of honorees.

Darlene Miller Nak“Darlene’s leadership  reaches far beyond PERMAC. As a member of the President’s Council on Jobs and Competitiveness she recognized the need for trained high skill workers and led the creation of Right Skills Now training program and helped support the 10,000 Engineers nationwide engineering student retention program. She was named small business person of the year in 2008 by the U.S. Chamber, and serves as an officer and board member at PMPA as well as a number of other nonprofits.”

Congratulations to Darlene and all the women recognized for their vital role in manufacturing today. And thanks to the Manufacturing Institute for helping raise the awareness of the vital need for the talents that these and all women bring to our shops.

Yes, I would like to see my daughter get into manufacturing. Wouldn’t you?


Athlete, Engineer, Physician, Machinist- What Are The Chances?

May 3, 2011

The odds are pretty slim you’ll make it into professional athletics.Time spent on math and science can assure you of a well paying professional career, even if you choose not to go to college.

Machinists make the bone screws that engineers designed that physician surgeons install in injured professional athletes.

 

Professional Athletes:  16,500 positions; Average Salary $79,460;  source BLS 2008 http://www.bls.gov/k12/sports02.htm

Professional Engineers: 1,600,000 positions; Average Salary $79,000  (my quick estimate from a look at the table) http://www.bls.gov/oco/ocos027.htm

You have a roughly the same chance to make the same wages by choosing engineer or athlete, the number of potential positions improves dramatically for engineers.

Physicians and Surgeons: 661,400 positions; Average Salary $186,044 source BLS 2008 http://www.bls.gov/oco/ocos074.htm

Machinists: 380,720 positions; Average annual earnings $38,940, (Aerospace machinists $43,110)    http://www.bls.gov/oes/current/oes514041.htm

I compile employment and compensation data for the PMPA, and the BLS machinist data seems to understate the wages of top performers.

And the BLS data seems to indicate straight time only. (Not include overtime.)

Yes maybe some day I will pay $50 a ticket to watch you play your sport.

But based on the number of positions, chances are I’m going to pay a heck of a lot more for your professional work product if you become an engineer, a physician, or a machinist.

If you can do the math, you can see how these odds work for you.

Come join us in  our world of  applying Science, Technology, Engineering and  Mathematics – in Manufacturing.

We can help you find productive use of your talent and skills.

We’re the People Who Make Things.