Quoting Machine Time vs Labor Time

Ask ten estimators how they calculate shop rate and you’ll get ten different answers. Some use a single blended hourly number. Others separate machine time from labor time but apply the same overhead multiplier to both. Few actually track them independently from...

Quoting Setup Changes Mid-Run

Mid-run setup changes are a silent margin killer. A customer calls at 2 PM requesting a tolerance tweak on the next 50 parts. The machine stops, the operator re-fixtures, the programmer adjusts the CAM, and the inspector re-checks first articles. Meanwhile, the clock...

How to Calculate Real Machine Hour Rates

Ask ten shop owners how they calculate machine hour rates and you’ll get ten different answers — most of them incomplete. Some use a flat $75/hr for everything. Others take the machine purchase price, divide by five years, and call it a day. Neither approach...