6 Factors Affecting Manufacturing costs

While taking up any project we need to know what are the factors that might affect us? Let us know about the insights so that we can be prepared while planning our next project.

Labor costs : 

The labor costs may vary depending on the geographical factors. Some of us might be thinking of hiring employees at low wages so that our expenses are reduced. But we are forgetting that we are lacking in productivity due to poor product finishing. As a result of this we are getting short term results which is a major drawback for you and your company/project. So if you want high quality productivity you need to employ skilled people. We need to pay high for those people because they are experienced ones who can handle all the complex tasks. So before setting up any project invest more on skilled people which will give you long term results.

Raw material : 

There are thousands of raw materials available in the market. Before setting up any project first we need to decide which raw material we should use. It is a major task because each of them have different properties and price points. So you need to think which one is suitable for you. In order to know about them, you can view the price tables which are found on the internet. Be updated with the price points so that you can be confident enough to use raw materials.

Part Complexity : 

Different parts are having different complexities. Some are easy and some are complex. It takes a lot of time and man power in order to complete the final design. With each process the cost will increase because we need to hire additional labor, testing etc. Try to keep your designs simple because it will reduce your labor costs. Designing complex parts involve a lot of work, patience and investment to achieve the final one. So keep simple designs, which will result in faster production.

Tooling : 

We need some specialized tools in order to make cast parts. Without those tools we can’t complete the designing of the product. We use tools for vacuum casting, injection molding and pressure die casting. The costs may vary depending on the three factors : the materials the tools are made from, how many components they have, whether they require special treatments like photo etching or hardening.

Volume : 

Even Though it is a single part or thousand parts the cost is the same. The cost and volume are inversely proportional. If more parts are made from the same tool, the price for each part goes down. With the increase in volume the manufacturer can reduce the production process which results in higher efficiency. 

Precision : 

Both Precision and Accuracy are related to each other but have slight differences in context. Accuracy is defined as the closeness of measurements to a specific value, while precision is closeness to each other. Most of the product developers don’t know that higher degrees of precision and accuracy require more investment and effort. All the raw materials are affected by temperature and humidity. They move and deflect under the pressure of tools. These movements are imperceptible and easily accepted. Closer tolerances and higher precision can drive up labor costs substantially .

While taking up any project you should keep all these things in your mind so that you are a step ahead towards better productivity.

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