Short Run Production & Associated Costs

What is a Short Run?

 

 

Short Run Definition: a short run is when a metal fabrication facility such as Berrien Metal Products, Inc. manufactures parts in a one-time bid. No future production of that same part is expected. Sometimes "short run" is a misnomer and small quantities of the same design are repeatedly ordered over the course years.

 

Parts always cost more to make at the beginning than they do down the road. This is because at the beginning there is an investment to create the "tooling" for the job through engineering.

 

Once the tooling is created, it remains to be used for future production. Thus, you will see a "one time tooling charge" on most orders for short run jobs.

Short Run Production Costs:

 

 

Your short run production costs are simply calculated this way:

 

(Material + Engineering + Tooling + Takt Time) *times* Markup % = Cost

 

Note that "Takt Time" is the time required to run the job.

 

Shaving Your Short Run Costs:

 

 

You can make things a lot cheaper for your project by implimenting these factors:

 

• Materials: Ask where your manufacturer is buying their materials. If they are buying from a middle-man, try to encourage them to buy from a more direct supplier. Better yet, supply the material yourself from a vendor you trust.

• Engineering: Ask how much experience your manufacturer has in developing the types of products you need. Be sure to ask about past successful campaigns and what sorts of projects have been fully completed. Include all possible details to the manufacturer. Even the slightest detail could save you a bundle in the long run.

• Tooling: Ask if your supplier does their tooling in-house.

• Takt Time: ask how much experience the actual workers have in their field.

 

Sometimes, with short run jobs that have virtually no engineering or tooling involved (e.g. all the holes to be punched are a standard size) production costs are up to %500 cheaper than those that have largely abnormal (custom) conditions such as a hole size .020" larger or smaller than usual. Talking with your manufacturer about how to bring costs down can greatly impact your bottom line. Honest suppliers are a gold mine of savings. They will alert you if a slight change to your print would yield a tremendous decrease in costs.

 

Our Short Run Production Capabilities:

 

 

Our equipment is well suited to handle most light to intermediate metal fabrication jobs. We are skilled with dozens of services and processes. Consider Berrien Metal Products, Inc. as your metal fabrications supplier.