9 Ways to Reduce Sheet Metal Fabrication Costs

See how to cut costs without sacrificing quality for your next sheet metal project.

Sheet metal fabrication can be a very cost-effective means of production – assuming you do it right. One key strategy is eliminating waste by streamlining processes and enhancing operational efficiency.

If you’re sourcing sheet metal parts or plan to do so in the future, read on to learn how to optimize costs from design to production. Implementing lean manufacturing principles is crucial for tackling inefficiencies and reducing operational costs.

Understanding Manufacturing Costs

Manufacturing costs are the backbone of any production process, encompassing all expenses incurred to create a product. These costs are typically divided into three main categories: direct labour, direct material, and overhead costs.

Direct labour costs refer to the wages and benefits paid to employees directly involved in the manufacturing process. These are the hands-on workers whose efforts transform raw materials into finished products. On the other hand, direct material costs include the expenses for raw materials, components, and other supplies essential for production.

Lastly, overhead costs cover indirect expenses such as rent, utilities, and equipment maintenance, which are necessary to keep the manufacturing operations running smoothly.

Understanding these manufacturing costs is crucial for making informed pricing, production, and investment decisions. By analyzing these costs, companies can pinpoint areas for cost reduction and improvement, ultimately boosting profitability and competitiveness. 

Streamline Design for Manufacturability (DFM)

Have you heard the saying, “Less is more?” Well, it’s a golden rule in sheet metal design.

The more straightforward your design, the smoother the fabrication and manufacturing process. Before you get too carried away with intricate twists and curves, upload your part to our platform and let our engineering experts have a look. Their insights could reduce unnecessary costs, ensuring a seamless design-to-product transition.

Limit Custom Specifications to Reduce Manufacturing Costs

Standard sheets can be tempting to create; thicknesses and grades are your friends. While making a unique piece with custom dimensions is tempting, remember that every custom spec can increase the price tag. Custom specifications can significantly increase production costs by requiring specialized materials and processes.

Stick to the basics whenever possible.

Efficient Nesting and Layout

Maximizing the use of raw materials through efficient nesting reduces waste.

By considering this during the design phase, you ensure that material utilization is optimized, leading to cost-effective quotations and production.

Utilize Standardized Hole Sizes and Corners

Utilizing standard tool sizes for features like holes and corners can expedite production and reduce costs. Designing with these standardized sizes ensures efficiency without unnecessary tool changes or setups. Additionally, using standardized sizes can significantly reduce direct labor costs by minimizing the time and effort required for manufacturing processes.

Minimize Unnecessary Features for Eliminating Waste

Every additional feature in sheet metal design introduces potential cost. Evaluate the necessity of each feature, ensuring that they are essential to the product’s function or aesthetics. Minimizing unnecessary features can help reduce manufacturing costs by streamlining the production process and eliminating waste.

Opt for Common Materials and Finishes

Selecting widely available materials and finishes can be a significant cost-saving measure. While unique materials offer distinct advantages, they often come with a premium. Ensure the chosen materials align with the product’s requirements and budget considerations. This approach aligns with lean manufacturing principles by streamlining production processes, reducing waste, and enhancing efficiency.

Aluminium is especially popular on the MakerVerse platform for many applications, as it offers a good balance of low cost and excellent properties.

Factor in Tolerances

Precision in the manufacturing process is critical in sheet metal fabrication, but over-specifying tolerances can escalate costs. Familiarize yourself with the standard tolerances and design with these parameters to balance precision and cost. At MakerVerse, the standard minimum wall thickness is 0.5 mm, but it depends on the material and geometry.

Collaborate and Seek Feedback Using Lean Manufacturing Principles

We’re ready to help. Our engineering experts have decades of experience combined. They can help you uncover opportunities for further cost savings and design improvements. Collaboration with our team can also assist in implementing lean manufacturing principles designed to optimize operations by eliminating waste and enhancing productivity.

Consolidate Parts and Orders

Ordering multiple components simultaneously or merging several designs can reduce setup and shipping costs. Consolidation can lead to economies of scale, ensuring cost-effectiveness throughout production. Additionally, consolidating parts and orders can help reduce production costs by streamlining processes and minimizing direct and indirect expenses.

Reduce Labor Costs through Automation and Training

Reducing labor costs is a crucial aspect of manufacturing cost reduction. One effective way to achieve this is by implementing automation and training programs. Automation can help minimize the need for manual labor, reducing the risk of human error and increasing productivity. On the other hand, training programs can enhance existing employees’ skills, enabling them to work more efficiently and effectively.

Implementing automation technologies, such as robotic process automation (RPA) and machine learning, can help streamline manufacturing processes and reduce labour costs. These technologies can take over repetitive tasks, allowing your workforce to focus on more complex and value-added activities. Additionally, training programs can concentrate on upskilling employees in areas such as lean manufacturing, quality control, and equipment maintenance. Cross-training employees can also help reduce labour costs by increasing flexibility and reducing the need for specialized labour.

Investing in employee development can increase job satisfaction, reduce turnover rates, and improve overall productivity. By focusing on automation and training, you can create a more efficient and cost-effective manufacturing operation.

Implement Cost-Effective Manufacturing Technologies

Implementing cost-effective manufacturing technologies is essential for reducing manufacturing costs. This can include investing in energy-efficient equipment, adopting Industry 4.0 technologies, and leveraging data analytics to optimize production processes.

Energy-efficient equipment can help reduce energy consumption and lower manufacturing costs. For instance, upgrading to energy-efficient machinery and lighting can significantly reduce energy bills. Industry 4.0 technologies, such as the Internet of Things (IoT) and artificial intelligence (AI), can help optimize production processes and improve supply chain efficiency. These technologies enable real-time monitoring and predictive maintenance, reducing downtime and enhancing productivity.

Data analytics can provide valuable insights into manufacturing processes, enabling companies to identify areas for improvement and optimize production. You can pinpoint inefficiencies and implement targeted solutions by analyzing data from various stages of the production process. Implementing cost-effective manufacturing technologies can help reduce waste, improve product quality, and increase overall efficiency, leading to significant cost savings.

Reduce Energy Consumption to Lower Manufacturing Costs

Reducing energy consumption is critical to lowering manufacturing costs. Energy costs can account for a significant portion of manufacturing expenses, and reducing energy consumption can help lower costs.

Conducting energy audits can help identify areas of energy inefficiency and provide opportunities for improvement. These audits can reveal outdated equipment or processes that consume excessive energy. Implementing energy-efficient lighting and HVAC systems can help reduce energy consumption. For example, switching to LED lighting and optimizing heating and cooling systems can lead to substantial energy savings.

Investing in renewable energy sources, such as solar and wind power, can help reduce reliance on fossil fuels and lower energy costs. Additionally, implementing energy-efficient manufacturing processes and equipment can help reduce energy consumption and lower manufacturing costs. By focusing on energy efficiency, you can save significantly and contribute to a more sustainable manufacturing operation.

Improve Supply Chain Management to Reduce Costs

Improving supply chain management is essential for reducing manufacturing costs. This can include optimizing inventory management, streamlining logistics, and improving supplier relationships.

Implementing just-in-time (JIT) inventory management can help reduce inventory costs and improve supply chain efficiency. You can minimize storage costs and reduce the risk of overstocking by receiving materials only as needed. Streamlining logistics can help reduce transportation costs and improve delivery times. Efficient logistics planning ensures that materials and products move smoothly through the supply chain, reducing delays and associated costs.

Improving supplier relationships can help reduce procurement costs and improve overall supply chain efficiency. Building strong supplier partnerships can lead to better pricing, more reliable deliveries, and improved collaboration. Implementing supply chain management software can help optimize inventory management, logistics, and supplier relationships. These tools provide real-time visibility into the supply chain, enabling better decision-making and cost control.

Reduce Overhead Costs through Strategic Planning

Reducing overhead costs is a critical aspect of manufacturing cost reduction. This can include implementing cost-saving initiatives, streamlining administrative processes, and improving facility management.

Implementing cost-saving initiatives, such as energy-efficient lighting and HVAC systems, can help reduce overhead costs. For example, upgrading to energy-efficient systems can lower utility bills and reduce operating expenses. Streamlining administrative processes can help reduce labour costs and improve overall efficiency. Automating routine tasks and improving workflow can free up resources for more strategic activities.

Improving facility management can help reduce maintenance costs and improve overall facility efficiency. Regular maintenance and timely repairs can prevent costly breakdowns and extend equipment lifespans. Implementing strategic planning can help identify areas for improvement and optimize overhead costs. By regularly reviewing and adjusting overhead expenses, you can ensure that your manufacturing operations remain cost-effective and competitive.

Start Saving on Sheet Metal Fabrication by Optimizing the Manufacturing Process

By mindfully implementing these strategies, designers can ensure that the transition from a design file to production is seamless and economically optimized. Eliminating waste in the production process is crucial for cost-effective manufacturing.

When paired with an on-demand manufacturing platform like MakerVerse, sheet metal fabrication presents unique cost savings and efficiency opportunities. Implementing lean manufacturing principles further enhances these benefits by optimizing operations and reducing inefficiencies.