Engineering and Auto Components

In short

  • For machining, casting, forging, sheet-metal and assembly units around Chennai, Ranipet and Hosur.
  • Buyers fix the price, ask for a reduction every year and schedule deliveries by the day.
  • Profit depends on knowing the cost of each part: machine time, material yield, rejections and tooling.
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What usually goes wrong

  • A quote is only as good as the machine-hour rate and cycle time behind it.
  • Material that leaves as swarf (metal cuttings) or rejects is paid for in full.
  • A yearly price reduction can only be met from cost that has actually come down.
  • Daily schedules push stock back onto the supplier.

What we do for you

  • We work out machine-hour rates by machine or cell, and a cost per part from cycle time and set-up time.
  • We spread tooling cost over the parts it makes.
  • We compare input weight with finished weight by part, and credit scrap at what it actually fetches.
  • We cost rejection and rework, in-house and at the customer.
  • We give a costed answer to a price-down request, and to a material price change.
  • We check whether cost records and cost audit apply.

The rules in detail →

We work from your own records, and we show you how each figure was worked out.

Want to know what each part really costs before the next price negotiation?

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