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.
If you’re sourcing sheet metal parts or thinking about it in the future, read on to see how to optimize costs from design to production. Additionally, implementing comprehensive strategies for manufacturing cost reduction can significantly enhance operational efficiency.
Understanding Manufacturing Costs
Manufacturing costs are the backbone of any production process, encompassing all expenses incurred to create a product. Production costs are a key consideration in manufacturing, as they directly impact profitability and competitiveness. These costs are typically divided into three main categories: direct labor costs, direct material costs, and overhead costs, which together form the overall cost structure of manufacturing.
Direct labor costs refer to the wages and benefits paid to employees who are directly involved in the manufacturing process. These are the hands-on workers whose efforts transform raw materials into finished products.
Direct material costs, on the other hand, 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, as well as ongoing operational costs, which are necessary to keep the manufacturing operations running smoothly.
Understanding these manufacturing costs is crucial for making informed decisions about pricing, production, and investment. By analyzing these costs, companies can pinpoint areas for cost reduction and improvement, ultimately boosting profitability and competitiveness.
For instance, identifying high direct labor costs might lead to investments in automation, while scrutinizing overhead costs could reveal opportunities for energy savings or more efficient use of space.
Streamline Design for Manufacturability (DFM)
Ever heard of the saying, “Less is more”? Well, it’s a golden rule in sheet metal design.
The more straightforward your design, the smoother the fabrication process goes. Streamlining your design can help reduce costs without compromising quality. 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 transition from design to product. Implementing lean manufacturing principles can further streamline the design process and reduce costs by addressing inefficiencies and adopting methodologies like the 5S system, supporting efficient production. Remember, cost-effective design does not mean compromising product quality.
Limit Custom Specifications
Standard sheet sizes, 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. Using standard sheet metal materials can significantly reduce costs and lead times.
Stick to the basics whenever possible. Using standard specifications helps streamline production schedules and reduces lead time, making your manufacturing process more efficient and cost effective.
Start Your Manufacturing Project with MakerVerse
MakerVerse is a platform for sourcing industrial parts. It provides instant access to a vetted supply chain and a full range of manufacturing technologies. With AI-powered quoting, order management, and fulfilment, MakerVerse helps with everything from initial prototypes to full-scale production.
Efficient Nesting and Layout in the Manufacturing Process
Maximizing the use of material through efficient nesting helps minimize waste, reduce material waste, and lower manufacturing waste.
By considering this during the design phase, you ensure that material utilization is optimized, leading to cost-effective quotations and production. Optimizing nesting can also reduce the scrap rate and improve throughput in the manufacturing process.
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. By standardizing features, manufacturers can minimize repetitive tasks on the shop floor, leading to improved efficiency and smoother operations.
Minimize Unnecessary Features Using Lean Manufacturing Principles
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.
Implementing continuous improvement initiatives allows teams to regularly assess and minimize unnecessary features, supporting ongoing cost effective manufacturing. Workforce training empowers employees to recognize and eliminate features that do not add value, further reducing waste. Additionally, using data to identify trends in feature usage and cost impact helps guide strategic decisions about which features to retain or remove.
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 that the chosen materials align with the product’s requirements, budget considerations, and current market demands to improve cost-effectiveness. It is also important to ensure that selected materials and finishes maintain high product quality, so the final product remains durable and consistent.
Aluminum 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 is critical in sheet metal fabrication, but over-specifying tolerances can escalate costs and increase cycle time, as tighter tolerances often require more complex and slower manufacturing processes. Familiarize yourself with the standard tolerances and design with these parameters to balance precision and cost. Using appropriate tolerances also helps identify defects faster during inspection, as clear standards enable real-time monitoring and immediate detection of irregularities. At MakerVerse, the minimum wall thickness is 0.5 mm, but this may vary depending on the material and geometry.
Supply Chain Optimization
Supply chain optimization is all about enhancing the flow of goods, services, and information from raw materials to the end customer. In the realm of manufacturing, supply chain management provides a comprehensive approach to optimizing sourcing, inventory, logistics, and supplier relationships. Optimizing the supply chain is vital for reducing costs, improving efficiency, and ensuring customer satisfaction.
Several strategies can help achieve supply chain optimization. Implementing just-in-time (JIT) inventory systems, for example, can significantly reduce inventory costs and improve responsiveness to customer demand. Effective inventory management helps minimize excess inventory and storage costs, supporting lean operations. Streamlining logistics and transportation can cut lead times and lower costs, while building strong relationships with suppliers can lead to better prices and improved quality.
Additionally, leveraging supply chain visibility and analytics allows companies to track and analyze performance, identifying bottlenecks and areas for improvement. Optimizing inventory and production scheduling improves production flow and production processes, ensuring smooth and continuous operations. These strategies also help improve cash flow by reducing holding costs and waste. By optimizing their supply chain, manufacturers can reduce costs, enhance efficiency, and deliver better value to their customers.
Stay on Schedule with MakerVerse
Unreliable lead times can disrupt your entire project. MakerVerse provides consistent delivery windows, real-time order tracking, and a dependable supply chain. From prototype to production, you stay in control and on time.
Collaborate and Seek Feedback
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 and feedback between teams can lead to significant improvements in cost-effective manufacturing by identifying inefficiencies and optimizing processes. Using such tools as integrated digital platforms and analytics facilitates seamless collaboration and real-time feedback, ensuring continuous enhancement of manufacturing outcomes.
Consolidate Parts and Orders to Optimize Supply Chain
Ordering multiple components simultaneously or merging several designs can reduce both setup and shipping costs. Consolidation can lead to economies of scale, ensuring cost-effectiveness throughout production. Additionally, consolidating parts and orders can help reduce manufacturing costs by streamlining processes, minimizing waste, and enhancing manufacturing productivity by optimizing workflows and reducing bottlenecks. Using digital work instructions to manage consolidated parts and orders further streamlines operations by automating data collection and providing real-time guidance, which improves efficiency and standardizes training.
Energy Efficiency and Sustainability
Energy efficiency and sustainability are increasingly critical for manufacturing companies, not just for environmental reasons but also for cost management. Monitoring and optimizing energy use and energy usage are essential steps to reduce costs. Conducting regular energy audits helps identify inefficiencies and opportunities for savings. Managing utility expenses is a key part of an effective energy efficiency strategy. Implementing preventive maintenance and integrating automated systems can further support energy efficiency and sustainability by reducing downtime and optimizing equipment performance. Adopting sustainable practices, such as eco-friendly equipment, renewable materials, and recycling programs, improves both cost savings and environmental impact. These efforts not only enhance brand reputation but also provide a competitive edge in the market.
There are several strategies to enhance energy efficiency and sustainability. Implementing energy-efficient equipment and processes is a primary step. This might involve upgrading to more energy-efficient machinery or optimizing existing processes to use less energy. Encouraging behavioral changes and engaging employees in energy-saving practices can also make a significant difference.
Investing in renewable energy sources, such as solar or wind power, can further reduce energy costs and enhance sustainability. Additionally, adopting sustainable manufacturing practices, like recycling and waste reduction, can contribute to both cost savings and a better environmental footprint.
By focusing on energy efficiency and sustainability, companies can not only reduce costs but also improve their environmental performance and strengthen their reputation with customers and stakeholders.
Start Saving on Sheet Metal Fabrication
By being mindful of these strategies, designers can ensure that the transition from a design file to production is seamless and economically optimized.
When paired with an on-demand manufacturing platform like MakerVerse, sheet metal fabrication presents unique cost savings and efficiency opportunities
