TOOL COST Myth !

The material costs are fixed at 22%, it is generally accepted that tooling costs are 3% and the other 75% are made up of overheads (21%), manpower (28%) and machining (26%). Because you are a good client, even if you got your tooling for free, he stated, you would not make any significant savings on the overall cost per part. But if you reduced your machining time per part, one cost that is flexible and not fixed, and time on the machine, such as setup, he continued, then you are realising real savings and this is where cutting tool and machine manufacturers are coming to the party by developing new generation products and advanced machining solutions.