Updated: December 04, 2023
Probably, you are an enthusiast of CNC machining or an entrepreneur intending to launch precision machining service. In both cases, you should be curious about how such businesses are equipped, what services they provide, and what software they use.
Let’s dive into the functioning of a CNC machining shop in greater detail.
Ultimately, CNC shop is a place where offer tight tolerances machining part with subtractive manufacturing process. The machining process looks like a single room, a floor with a number of rooms for intended use, and even an entire building with multiple manufacturing lines.
CNC machining factory work with nearly any machinable materials like wood, plastic, metal, and even machinable foam. It’s done using machining center — completely automated, computer-controlled units performing operations as per pre-programmed instructions.
It’s hardly possible for a manufacturing shop to serve all the industries. So, they typically focus on several specific ones like automotive, aerospace, chemical industry, etc. As an option, it’s possible to produce less specialized parts or rough workpieces that are used in various sectors.
Nowadays, Custom machining is of utmost importance for manufacturing overall. The market is highly competitive. So, it’s not good enough to just be better or deliver more affordable services than competitors. CNC machining is about the level and quality of service delivered. An example of a CNC shop flow is shown in the image below.
What types of machining equipment are normally need for machining factory to operate. The list below includes both CNC units and complementary machines:
There are other types of tools performing production and complementary tasks. It’s always that a particular niche has certain requirements for its parts to be produced. This normally results in the need to purchase some additional sorts of equipment.
Under the term “optimize,” the streamlining of the process is normally understood. The desired result here is to make sure employees and production equipment are used in a rational way and without substantial delays. It will lead to lower manufacturing costs per part fabricated. Ways to do so are the following:
Some CNC service suppliers, unfortunately, fail to optimize their supply chain. It leads to inconsistencies in supply, over or understocking, production delays, and other forms of unpleasant surprises. Here are the tips for ensuring good, end-to-end production:
3.1.1. Have a solid supply chain management system. It has to ensure two things: that raw materials and tooling are delivered in required quantities plus 5-10% more (rejection rates and unpredictable issues) and that transport keeps up with the pace of manufacturing, so there is no overstocking.
3.1.2. Construct an optimal manufacturing line. Avoid placing production units in the way half-finished components have to be moved between rooms multiple times. This will prolongate the manufacturing process overall.
Aim at building complete lines with units for preparing raw workpieces, for processing these to half-finished parts, for finishing these parts, and for packing into primary and secondary packaging if necessary.
3.1.3. Ensure the rotation of personnel. The worst-case scenario on your manufacturing line is the complete stop of production – breakage. If 3 machinists are needed to fix it, these must be present every hour of a CNC shop operating. This will not cause the situation when you will have to wait for a specialist to arrive at the premises.
The idea here is basically the same as for the supply chain. A single part may require some types of finishes to be applied. So, it’s wise to ensure a one-stop finishing service. For this purpose, it’s necessary to pre-plan and construct several lines for applying finishes:
Even if it’s impossible to have all of the details, a CNC shop must offer hand form fit function finishing, CNC polishing, bead-blasting, and either powder coating or painting.
The thing is that none of the industrial machines is 100% accurate. Normally, there is some production error or deviation from the set dimensions. Sometimes it is within limits, but it may also breach them, which must be detected. here are the ways of doing so and protecting your brand’s reputation:
Don’t neglect any of the described needs for your CNC shop, as they impact the level of your service significantly.
It’s crucial that your workers are not endangered. CNC shops are quite a place where incidents are absolutely unheard of. So, consider sticking to these recommendations to prevent those:
So, there are methods in which you guarantee that your CNC shop is subject to no safety issues.
There are some parameters according to which you can determine if a chosen contractor is any good. Or, use them to see if your own CNC business qualifies as a quality manufacturing shop:
Pay attention to these aspects whether you are an owner of a CNC shop yourself or a customer looking for manufacturing services.
Let’s skip programs for sending emails, writing texts, accounting, and other non-related to the manufacturing process itself. So, here is the software that is absolutely crucial for ensuring the seamless CNC fabrication of goods:
Reaching the target customers for a CNC shop is not the same as for any other, for example, e-commerce business. Manufacturing services are typically Business to Business (B2B) services. Here are some target customers that are likely to request your assistance:
Be prepared to approach each such customer individualistically, as they tend to carefully select and even audit their partners. They may also organize a tender to get the best conditions, so you must be prepared for some rational competition.
It’s often that a single manufacturer struggles to fulfill a contract independently. Considering the strict contract terms that are extremely unpleasant to violate, you may be frequently asked to outsource some CNC shop’s urgent needs.
Your pricing policy and the types of customers you are willing to partner with are completely up to you. Remember, there is no point in turning down small orders even if they are not that profitable. Just make sure you never work at prime cost.
A single CNC unit may cost somewhere between $2000 and $500,000, so it’s kinda difficult to state what capital is needed for a CNC shop startup. But let’s make some estimates anyway for you to have an initial insight.
Expenditure | Cost | Required? |
---|---|---|
Equipment & Supply Expenses | ||
Equipment & Supply Expenses | ||
Cleaning supplies | $30-100 | Optional |
First-aid equipment | $50-300 | Optional |
Uniforms and protective equipment | $50-500 | Optional |
Retail Business Expenses | ||
Shop Decor | $1000-5,000 | Optional |
Utilities (storefront business) | $200-1,000 | Optional |
Building improvements and remodeling | $100-1,000 | Optional |
Storefront Property Rent ➜ | $1250-3,500 | Optional |
POS System | $0-1200 | Optional |
Software Expenses (either subscription or license average weighted cost) | ||
Email marketing tool | $0-100 | Recommended |
Accounting & Invoicing Software | $0-50 | Recommended |
Project Management Software | $0-50 | Recommended |
Social Media Management Tools | $0-50 | Optional |
Payroll Software | $0-50 | Optional |
CAD Software | $0-100 | Recommended |
CAM Software | $0-100 | Recommended |
Inventory Expenses | ||
Upfront Costs For Inventory | $300-5,000 | Recommended |
Package options | $0-3,000 | Recommended |
Inventory storage | $0-5,000 | Recommended |
Shrinkage | $0-1,000 | Recommended |
Distribution costs | $0-750 | Recommended |
Advertising & Marketing Costs | ||
Direct Campaigns, Printing and Mailing | $0-800 | Optional |
Business Cards | $0-50 | Optional |
Influencer Marketing | $0-750 | Optional |
Press | $0-500 | Optional |
Google Ads | $0-400 | Optional |
Website Costs | ||
Domain | $12-200 | Optional |
Development | $0-10,000 | Optional |
Capital costs (basic ones only. They easily can multiply many times) | ||
Design computer | $1,000-2,000 | Obligatory |
CNC mill | $5,000-200,000 | Obligatory |
CNC lathe | $5,000-200,000 | Obligatory |
Horizontal bandsaw | $3,000-25,000 | Obligatory |
Tooling allowance | $1,000-10,000 | Obligatory |
Shipping and taxes | $3,000-8,000 | Obligatory |
Transportation vehicle | $10,000-30,000 | Recommended |
Operating costs (basic ones only. They easily can multiply many times) | ||
Initial supply of materials | $5,000-15,000 | Obligatory |
Lease of industrial zone real estate | $10,000-100,000 annually | Obligatory |
Insurance | $2,000-5,000 annually | Obligatory |
Total Costs | Most affordable – roughly $50,000 All-inclusive – roughly $600,000 | |
As always, the reality is somewhere between worst-case and best-case scenario. So, approach this project wisely and do not neglect to prepare a proper business plan.
CNC machines work with only one type of files – CAM file (G-coded text files with instructions for CNC computer indicated). In case you have such a file intended for a regular, for example, CNC 3-axis mill, and it works properly, be sure that it will be executed correctly.
However, in most cases, businesses have a CAD file with a 3D model of a component to be manufactured. This way, a CNC shop will have to convert the file into a CAM file themselves and probably make some rapid prototyping prior to fully-fledged, large-scale manufacturing.
One more version is a blueprint that will serve as engineering documentation for a CNC shop to rapidly prototype a component, prepare CAD, and then CAM file.
In both cases, you will need to accompany the CAD or CAM files and blueprints with the bill of materials, and some engineering specifications for your desired components, if a CAD file does not include this information.
So, you should send your design as either blueprint, CAD, or CAM file, along with specifications and a bill of materials. It’s better to send them all together for a CNC shop to have all the needed details just in case.
Examples of all of the mentioned are shown in the images below.
CNC mill and CNC lathe share the first place. 40% of all the work in CNC shops is done by a mill, the other 40% of work is the lathe. The 20% of work left is split between like a dozen of other CNC unit types. Turning machines and machine centers serve as common replacements for lathes and mills, respectively.
It’s a sensitive question that requires well-thought-out answering. To stay in business, CNC shops have several types of expenditures preplanned and included in the end price. These are both typically and specific, as indicated in the list below:
Always start by estimating expenses. As a rule of any business running, the customer pays off all the expenses for producing its product plus your margin, your profit, which is normally 10-30%.
A short answer: $200,000 mill or $200,000 lathe. That’s it. Indeed, some CNC shops operate having a very limited number of units (the extensive list is indicated in the first sections of the post). You will also benefit from having a horizontal bandsaw. It is needed to cut wood or steel, so you have suitable workpieces.
Depending on your niche, you may not need either mill or lathe. Instead, you will have to purchase some other equipment units.
In essence, running a CNC shop is not as easy as newbies might think. The main issue is the initial capital costs which are huge. There are also plenty of aspects to give a good thought, starting from a decor for a shop ending with types of customers to work with and pricing policy.
Always start planning your CNC shop with a proper business plan, and carefully choose contractors you trust fabrication of your components to.
Outsource cnc machining is also a good choice to make your custom parts.