Determining The Value Of Outsourcing CNC Machine Services

One of the biggest challenges for OEMs of any size and in any industry is to be able to effectively manage the cost of production. For OEMs in industries requiring precision parts and components made of metal alloys or plastics, comparing in-house to outsourced CNC machine services is an important exercise.

Determining the overall value of outsourcing is more than just comparing the bottom line cost of production, although that is a critical component in the calculation. There are several other issues that create a definite impact on the cost and the long-term benefits of the outsourcing option.

Equipment Considerations

When your parts and components need the precision offered with CNC machine services, the cost of both purchase, upkeep, and updating of these systems is a central factor to consider. This equipment offers not only the latest in precision machining systems but also requires state-of-the-art technology in the software systems.

The advantage of working with top CNC machining shops is the cost of the equipment and maintenance is not the responsibility of the OEM. Additionally, these companies tend to have both general use equipment as well as specialized equipment, so they can provide a greater range of services.

Capacity Considerations

A very real concern with production and in-house CNC machine services is the challenge in ramping up production to the levels required. Sudden increases in product demand are common in any industry, and in-house production is limited by the physical space, the equipment and the manpower available.

Specialized CNC machining shops, particularly those specializing in working with OEMs from small companies to large industries, are better prepared to handle large volume orders or increases in production. These companies have the lines, equipment, and the production capacity and capability to quickly ramp up production to meet the needs of the market.

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