Author Archives: Jeff Westhoff

Sandvik Coromant Spotlight: Improve Your Machine Shop’s Burden Rate

Are you accurately assessing your operational costs? Many production facilities try to roll equipment costs and operating costs into one overhead account and then attempt to apply it to the entire shop. At a minimum, two problems can come from that:

  • You could dramatically underprice your rates for some parts and never be able to cover the cost of production.
  • You could overprice and drive business straight out of those departments.

If you don’t accurately assess the true costs associated with each machine or each part, you’ll never get a full return on your investment, and that’s when your business suffers.

Take a look at your production costs. What does it cost per hour to run your equipment? What is your output rate per part? Your scrap rate? If you think your shop could run faster, leaner and more efficient, you’re probably right. That’s exactly where M&M Sales & Equipment shines. Not only do we have extensive product knowledge, but our staff are among the few in the industry that have real metal cutting-application experience. We know the cutting tools and supplies you need because we’ve been in your shoes.

We specialize in helping you overcome production challenges. Our customers know that they can come to us with questions and we’ll work to find solutions. Check out this example of a customer who needed help optimizing their cutting process:

Recently, a customer contacted M&M Sales & Equipment for a better and faster cutting solution. They were fabricating the same part, but from two different materials. One was stainless steel and the other low carbon steel. Their challenge was making the same hole in the center of the bar and wanted to use one drill for both materials for faster production.

One of our knowledgeable representatives went out to the facility to observe the process and offered a solution. Not only that, they tested that solution and dialed it in for optimal performance.

That solution was the Sandvik Coromant CoroDrill ® 880.

Anyone can sell a product. It takes experience to sell a solution. That Sandvik Coromant CoroDrill 880 could cut both materials, but it didn’t end there. Not only could it effectively cut the stainless steel and the low carbon steel, it did so efficiently. The drill cut faster, more consistently and didn’t fail prematurely, which meant less downtime and more time savings.

When you look at your shop’s fixed cost of producing a part, so many dollars will be spent no matter how you slice it. That’s your labor and burden rate. The only way to produce that part at a lower cost is to produce it faster with less waste. We can help you spec out the right tools and supplies you need to process a part, minimize scrap and reduce wear on your machines, ultimately improving your burden and job completion rates.

If you’re looking to improve performance in your production facility or want to learn more about the top-rated tools we sell, contact us at any of our four M&M Sales & Equipment locations in West Texas today.