When a shop wants to achieve cost savings from cutting tool purchases, it is likely to consider two factors: tool life and tool price. When evaluating competitive equivalent tools, the shop should consider how much use is available from each tool and how much it costs for each minute or hour of cutting. But is this the best way to find the maximum savings your tool can achieve?
Mainly to improve cutting ability
A survey conducted by tool supplier Sandvik Coromant explains why there is a problem with this approach. The survey surveyed a number of manufacturers to evaluate factors that have an impact on the cost of the workpiece. The figures show that when it comes to the potential for cost savings, the price and life of the tool are not very relevant.
They represent the average cost per part in a percentage. The cost of cutting tools is only 3% of the total cost, which means that the improvement in tool life or price can only provide a small savings. These figures also illustrate which aspects of the tool have greater potential for savings.
Variable cost (cost incurred only in production)
Cutting tool: 3%
Workpiece material: 17%
Fixed costs (costs incurred at all times)
Machinery: 27%
Labor force: 31%
Plant and management: 22%
These numbers are used in three different methods to reduce costs. The comparison assumes that the current cost of a batch of workpieces is $10 per piece, meaning that 3% of the cutting tool is converted to 30 cents, and 17% of the workpiece material is converted to $1.7.
Case A (saving 30% of tool cost) is the “failure tool supplier†approach. The workshop won a 30% discount on tool prices. However, even such a high price reduction translates to only 9 cents per part, with a savings ratio of less than 1%.
Case B (50% longer tool life) focuses on tool life. The shop conducted a comparative experiment in which it found a tool that guaranteed a 50% longer life. But the real impact of this savings is also low. The negligible money saved per workpiece represents only a 1% cost savings.
Now let's look at Case C (increasing the cutting speed by 20%), where the change in the tool allows the cutting speed to be increased by 20%. Although it is much more expensive to implement such a high speed tool, the new tool proves its value by influencing a larger source of expenses.
As the speed is increased, the cycle time is reduced, thereby increasing the processing capacity. If there is an operation that requires such processing capability, the associated machine tool, labor, and management costs are reduced for the corresponding workpiece, resulting in a total cost savings of up to 15%. (This figure does not even include other benefits from improved production time.
The above comparison is not necessarily an argument that is advantageous for high cutting speeds. Instead, it is a favorable argument for saving time. The logic provided here is also suitable for combining tools – combining multiple machining steps into one tool or designing a tool for direct machining of smooth surfaces, eliminating the need for finishing steps. This type of tool can be more expensive, but it can achieve a high percentage savings if it saves time and enables fast machining.
The impact of coated tools on cost
By reducing tool wear, the tool coating can extend tool life and win back investment costs. This statement of the value of tool coatings has been understood. However, this statement is not comprehensive. Many processing plants do not spend a lot of time on tools, so it is not possible to show the value of coated tools only in terms of tool life. However, these processing plants can still benefit from coated tools.
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