Top Tips for Reducing Sheet Metal Fabrication Cost Part 1

Sheet metal processing is one of the most popular manufacturing processes in prototype construction. It helps in the production of various durable parts ranging from prototypes to high volume parts. Many industries are turning to this process for their applications due to the many commercial benefits. However, the cost of sheet metal fabrication is usually a contentious issue for product developers.

Every aspect of a sheet metal project has a cost associated with it – the design, a possible prototype, finishing and others. Aside from the process itself, the materials also cost money. Therefore, it is important to have a cost savings plan in place to get the most out of your sheet metal project.

In this article, we’ve compiled the various factors that affect sheet metal fabrication costs, as well as the various cost-cutting tips. Before that, let’s deal with estimating the cost of sheet metal processing.

Cost estimation of sheet metal products

Today’s competitive markets require a sufficient understanding of the cost structure for an appropriate pricing strategy. There are multiple stages in the sheet metal part production cycle including cutting, bending, roll forming, stamping, welding and more.

We will discuss a sheet metal fabrication cost calculator using simple ideas and concepts.

Step 1: Production Cycle Breakdown

Product development involves different cycles and production cycles often vary from one application to another and can have different phases. Therefore, we need to break down the cycle into simpler processes. This way we can focus on one cycle at a time.

Step 2: Calculate the raw material costs

Manufacturing products requires one or more raw materials. For a drywall, for example, metal spools, wooden boards and tape are needed. Therefore, we need to estimate the number of materials needed to manufacture a single product.

The sheet metal fabrication cost calculator estimates the raw material cost for one piece of product as follows:

Volume x material density x material cost per kg = raw material cost

Suppose the material cost is $0.8 per kg for a steel density of 7.4 kg/dm3 and a plate size of 800 x 400 mm and a thickness of 1 mm. We have:

Raw material cost = (8 x 4 x 0.01) x 7.4 x 0.8

Raw material cost = $1.89

You must repeat this process for each raw material used in the process.

Step 3: Add up the cost of processing

In this step, you need to know the hourly cost of the system or machine, the efficiency of the system, and the productivity of the system (cycle time).

The formula for calculating the processing costs is:

(Hourly Cost x One Piece Cycle Time)/ Efficiency = Machining Cost

As an example, assume the cycle time is 12 seconds with an efficiency of 85.5% and an hourly price of $78.4. We obtain:

Processing Cost = (78.4 x 12) / (0.855 x 3600)

Handling cost = $0.30

The total direct production costs for a piece are therefore:

Raw Material Cost + Handling Cost = Total Product Cost

Total product cost (one piece) = $1.89 + $0.30 = $2.19

So you see that raw material cost saving can improve production cost as it accounts for a high percentage.

Step 4: Repeat the calculation for the different production phases

We now have the production costs for Machine 1 from raw material to output. We can now use the sheet metal cost calculator to repeat the process for other stages or machines. This allows us to complete the production cycle until the product is delivered.

Factors affecting the cost of sheet metal fabrication

Estimating the cost of sheet metal fabrication is critical to the project planning process. Technological advances have made cost-effective project management easier. Despite the expected cost reductions, it is important to estimate the cost of sheet metal fabrication. Below we provide a brief overview of various factors that affect the cost of sheet metal fabrication projects.

Installation prices

Ease of installation and installation time will affect sheet metal fabrication cost estimates. Sometimes the installation is not counted against the cost of materials, increasing the overall cost of manufacture. Installation prices often include costs for:

recruitment of professionals

Obtaining the necessary licenses or permits for installation

Purchase of safety equipment for installation

Transport costs of the manufactured parts to the place of installation.

The cost of raw materials

One of the first points in metal fabrication is the choice of material. It is worth noting that the metal market affects the overall price of parts at certain times. Raw material prices often fluctuate, which affects processors’ pricing. Another factor affecting the overall cost is the manufacturer’s proximity to the raw materials, considering transportation costs.

The thickness of the metal used for manufacture plays an important role in material and labor costs. If your project requires multiple materials, this can result in higher costs. In some cases, supply chains can be disrupted, leading to fluctuations in raw material costs.

Coating and welding costs for sheet metal processing

Let’s look at this premise: Welding precoated sheet metal is not very safe. Overheating the treated metal causes the highly toxic zinc oxide to be released from the coatings. This process is harmful to workers and the environment. The risks of welding and the labor involved are other aspects that impact the cost of sheet metal fabrication, particularly when pre-coated sheets are used.

Let’s assume you decide to use uncoated cold rolled steel for your project. Then after manufacturing, do the plating process to improve the corrosion resistance. As a result, your costs and lead times increase. So you need to revise your designs and carefully consider how to avoid welding.

Required physical work

Custom sheet metal fabrication requires highly skilled professionals, including professional assembly technicians, certified welders, inspectors, etc. H. to the number of workers required. This also affects the estimate of sheet metal fabrication costs.

The best manufacturing companies use computer-aided design to ensure customer satisfaction. Using CAD/CAM software for manufacturing processes also requires expertise, which also affects costs. Mechanical work is another factor to consider. The use of special tools and equipment represents a significant capital outlay and manufacturers often factor these costs into every project. Precise metal cuts and bends require the use of force, heat and pressure to improve speed and production quality. 

Metal structure

The structure of the metal and the resulting complexity of the design affect the cost of manufacturing sheet metal. For example, a sheet metal part that can be easily made with a die has a lower cost than parts that require many complex bends. The fewer bends, cuts and welds your project requires, the lower the cost.

Likewise, tighter tolerances and intricate designs often require longer manufacturing times, ultimately impacting the cost estimate. Also, metal structure and design complexity are closely related to labor cost. Therefore, it may be necessary to check ideas for cost effectiveness and quality using Design for Manufacturing (DfM).