11 Ways to Reduce CNC Machining Costs

CNC machining is an invaluable manufacturing process for creating precise and complex parts. One of the main benefits is that this technology can be very cost-efficient, especially when the right strategies are deployed to keep those costs down. Understanding the cost of CNC machines is crucial for effective cost management in CNC machining projects.

This article will show how to reduce costs while fulfilling your part’s functional requirements. At MakerVerse, we work with companies of all sizes to help them reliably source CNC machined parts. These insights come from extensive cooperation with our customers and long experience in manufacturing.

Let’s get started with the different ways to reduce CNC machining costs.

Understanding CNC Machining Costs

The cost of CNC machining can vary widely depending on several factors, including the type of machine used, the material being machined, the complexity of the part, the volume of production, labor costs, and more.

For instance, the type of CNC machine—whether it’s a 3-axis milling machine, a 5-axis milling machine, or a CNC turning machine—can significantly impact the cost. More complex machines often come with higher operational costs. Similarly, the material chosen for the part plays a crucial role; metals like titanium or stainless steel are more expensive to machine than plastics or aluminum.

The complexity of the part also affects the cost. Intricate designs with tight tolerances require more time and precision, leading to higher machining costs. Additionally, the volume of production can influence the price per unit. Higher volumes typically reduce the cost per part due to the distribution of setup and tooling costs over larger units.

Labor costs are another critical factor. Skilled operators are essential for running CNC machines efficiently, and their expertise comes at a price. Understanding these factors can help businesses make informed decisions to effectively manage their CNC machining costs.

1. Standardize Whenever Possible

Using widely available materials and off-the-shelf parts gives you the benefits of mass production, even in small-batch production. Understanding the CNC machining process is crucial for businesses looking to optimize their operations and manage expenses effectively.

• Some of the other benefits of using standard components include:

• Simplified inventory management

• Easier purchasing

• Avoiding tooling and equipment investments

• Faster manufacturing cycles

Optimizing the machining process can significantly reduce costs and improve production efficiency

2. Simplify Product Designs

When ordering several similar items, having identical sides and parts with multiple uses will be the least expensive. Standardizing designs will provide economies of scale for production, simplify manufacturing processes, and reduce the investment needed for tooling and equipment.

This approach is particularly beneficial in CNC machining projects, where standardizing components can streamline inventory management and reduce costs.

3. Design for the Most Cost-Effective Manufacturing Process

Each manufacturing technology has its advantages and disadvantages. During the design phase, understanding the unique characteristics of CNC machining technology can help reduce costs. Smart designers will learn the unique characteristics of each manufacturing process and then take advantage of them.

Choose the most cost-effective option if your design is manufacturable via multiple technologies.

The different CNC technologies, from most cost-effective to least, are:

• Laser cutting

• Turning

• Milling 3-Axis

• Turn-milling

• Milling 5-Axis

The expected production level is an essential consideration in the design, as specific manufacturing processes are better suited for small-batch or large-scale production. 3D printing, for example, is usually best for low batch sizes (< 10), while injection molding can be best for large batch sizes (>1,000).

4. Be Liberal with Tolerances

The extra costs associated with too-tight tolerances are well documented but worth repeating. Understanding CNC milling costs is essential for managing expenses related to tight tolerances. The higher costs of tight tolerances stem from:

• Extra operations, such as grinding or polishing after primary machining operations

• Higher tooling costs stemming from the greater precision needed when making tools, plus more frequent maintenance needs as they wear

• Longer operating cycles

• Higher scrap and rework costs (See below chart)

• The need for more skilled and highly trained workers

• Higher materials costs

• More sizable investments are needed for precision equipment

5. Choose the Right Material

The MakerVerse platform offers over 100 CNC machining materials, including various polymers and metals. Each material has its uses, so it’s crucial to select the best material that delivers performance with cost. Choosing the appropriate CNC milling machine can optimize material usage and reduce costs.

There’s no single material that’s best for saving money. In the long run, the most economical material meets the part’s specifications while offering the lowest combined cost of materials, processing, and service costs over the product’s lifespan.

6. Avoid Secondary Operations

The different operations associated with CNC machining can drive up costs. That’s why it’s always best to design your part to avoid secondary operations as much as possible. Utilizing computer numerical control can minimize the need for secondary operations and reduce overall costs. Things like deburring, inspection, plating, painting, heat treating, material handling, and others can add up to more than the main manufacturing cost. Therefore, these processes should always be considered in the design phase.

7. Leveraging Economies of Scale

One of the most effective ways to reduce CNC machining costs is to leverage economies of scale. As production volumes increase, the price per unit decreases. This is because the process’s fixed costs, such as setup and tooling, are spread across more units. By increasing production volumes, businesses can use economies of scale and reduce CNC machining costs.

For example, if a company needs to produce 1,000 parts, the setup and tooling costs are divided among all 1,000 units, resulting in a lower cost per part. In contrast, making only ten parts would mean that the same setup and tooling costs are divided among fewer units, leading to a higher cost per part.

To maximize the benefits of economies of scale, businesses should plan their production runs carefully. Grouping similar parts and scheduling larger production runs can help reduce machining costs. This approach lowers the cost per unit, improves efficiency, and reduces lead times.

8. Outsourcing vs In-house CNC Machining

Businesses have two options regarding CNC machining: outsourcing or in-house production. Outsourcing involves contracting a third-party manufacturer to produce the parts, while in-house production involves investing in CNC machines and hiring skilled operators. Each option has advantages and disadvantages, and the choice depends on the business’s specific needs and resources.

Outsourcing can be a cost-effective option, especially for small to medium-sized businesses. It eliminates the need for significant upfront investments in equipment and labor. Additionally, outsourcing allows companies to leverage the expertise and capabilities of specialized CNC machining services, leading to higher-quality parts and faster turnaround times.

On the other hand, in-house production provides more control over the manufacturing process. Businesses can closely monitor quality, make real-time adjustments, and potentially lower costs in the long run. However, this approach requires substantial investments in CNC machines, maintenance, and skilled operators.

Ultimately, outsourcing and in-house production should be based on a thorough analysis of costs, capabilities, and long-term business goals.

9. Consolidating Orders

Consolidating orders is another strategy for reducing CNC machining costs. By combining multiple orders into a single production run, businesses can use economies of scale and reduce costs. This approach can also simplify logistics and reduce shipping costs.

For example, if a company has several small orders for different parts, combining these orders into one more extensive production run can spread the setup and tooling costs across more units, lowering the cost per part. Additionally, consolidating orders can streamline production, reduce lead times, and improve overall efficiency.

However, this strategy requires careful planning and coordination. Businesses must ensure that all parts are produced to the required specifications and quality standards. Effective communication with the manufacturing team is essential to avoid potential issues and ensure a smooth production process.

10. Considering Alternative Manufacturing Methods

Finally, businesses should consider alternative manufacturing methods to reduce CNC machining costs. Depending on the design and requirements of the parts, other processes such as precision stamping, sheet metal fabrication, or additive manufacturing (3D printing) might be more suitable and economical.

For instance, precision stamping can be a cost-effective alternative for producing large quantities of parts with simple geometries. Sheet metal fabrication is ideal for creating parts with complex shapes and features. Additive manufacturing, or 3D printing, offers flexibility and can be more cost-effective for low-volume production runs or highly customized parts.

By exploring these alternative manufacturing methods, businesses can potentially reduce their CNC machining costs and improve their overall competitiveness. It’s essential to evaluate the specific requirements of each project and choose the most suitable manufacturing process to achieve the best balance of cost, quality, and efficiency.

11. Work with the Right Manufacturing Team

Teamwork is essential in any line of work, and that’s especially true for manufacturing. Work with the manufacturer and ask if you have any doubts about the design. After all, getting the design wrong adds to costs.

Leveraging advanced CNC machining technology can enhance the quality and efficiency of the manufacturing process.

In the same way, let the manufacturing team focus on what they do best. On drawings, specify only the final characteristics needed; do not specify the process. Allow manufacturing engineers as much latitude as possible in choosing a process that produces the required dimensions, surface finish, or other required characteristics.

With MakerVerse, our design and engineering experts check the manufacturability of your design. After, a fully-vetted supply chain ensures you get the high-quality parts you need. For sophisticated production orders, experts will work with you to develop, align, and supervise a manufacturing and quality plan from start to finish – keeping you updated at every step.