In the manufacturing industry, CNC machining and injection molds are two core processes that profoundly influence the production process and cost structure. Especially in sub - fields such as cnc turned parts and medical injection molding, the size of the production batch directly determines the pricing strategy. Next, we will deeply analyze the significant cost differences between low - volume and high - volume production through practical cases of oem parts machining and plastic parts manufacturing. （Assume that 1 Chinese Yuan equals 0.14 US dollars for conversion.）
Low-volume vs. high-volume pricing breakdown: The cost logic analysis of CNC machining and injection molds
2025-11-22
I. CNC machining: The cost trade - off between precision and flexibility
1. Low - volume production: Fixed cost allocation behind high unit prices
Take a factory engaged in oem parts machining as an example. A medical equipment manufacturer customizes stainless steel turned parts with an initial order of only 50 pieces.
Programming cost: The programming engineer charges by project, and the single - time programming cost is approximately 140 dollars (¥1000). This cost accounts for a relatively large proportion in low - volume production and becomes one of the factors driving up the unit price of products.
Fixture and jig cost: The cost of custom fixtures and jigs is approximately 280 dollars (¥2000). Due to the small order quantity, this high - cost expense is allocated to each product, significantly increasing the cost.
Debugging cost: The five - axis CNC machine tool takes 8 hours to debug. The machine in the CNC machining industry is charged by time. The equipment depreciation and labor costs total approximately 140 dollars (¥1000), and the single - piece allocated equipment debugging cost is approximately 8.4 dollars (¥60). Although the machine does not produce products during the debugging process, the cost still needs to be calculated, further increasing the cost burden.
Profit margin: Considering that low - volume production factories generally set the profit margin at around 20% to maintain daily expenses. Combining the above - mentioned costs, the final unit price of this product is approximately 35 dollars (¥250) per piece.
The key factor behind this is that one - time investments such as programming costs, fixture and jig costs, and debugging costs account for 60% of the total cost, which is extremely high. Moreover, when debugging new products, although the machine equipment does not produce products, it still needs to be charged, resulting in increased costs.
2. High - volume production: Cost optimization under economies of scale
Looking at oem parts machining in the automotive industry, an automotive manufacturer purchases cnc auto parts with an order quantity of 2,000 pieces.
Programming cost: The standardized programming process makes the programming cost allocated to each piece almost negligible. With the expansion of production scale, the programming cost is effectively diluted.
Fixture and jig cost: Custom fixtures can be reused, and the cost allocated to each piece is almost negligible. Compared with low - volume production, the cost is significantly reduced.
Debugging cost: After the production line is debugged and matured, subsequent batch production does not require long - term debugging, and the cost is significantly reduced. The continuity and stability of production reduce the cost consumption brought by debugging.
Improvement in processing efficiency: The automated production line realizes 24 - hour continuous processing, and the single - piece working hours are reduced from 20 minutes to 8 minutes, greatly improving production efficiency and reducing the production cost per unit time.
Profit margin: Due to high - volume production, the factory adjusts the profit margin to around 10%, and the final unit price of the product is approximately 8.4 dollars (¥60) per piece.
The key here is that multi - station machine tools can complete turning, milling, drilling and other operations at one clamping, reducing the number of clamping times and greatly improving equipment efficiency. As the output increases, the costs of programming, fixtures and jigs, and debugging allocated to each product are greatly reduced. At the same time, automated inspection equipment reduces the defect rate from 0.8% to 0.2%, reducing rework costs. In addition, the factory further improves production efficiency by reasonably arranging production plans and reducing equipment downtime
1. Low - volume production: Fixed cost allocation behind high unit prices
Take a factory engaged in oem parts machining as an example. A medical equipment manufacturer customizes stainless steel turned parts with an initial order of only 50 pieces.
Programming cost: The programming engineer charges by project, and the single - time programming cost is approximately 140 dollars (¥1000). This cost accounts for a relatively large proportion in low - volume production and becomes one of the factors driving up the unit price of products.
Fixture and jig cost: The cost of custom fixtures and jigs is approximately 280 dollars (¥2000). Due to the small order quantity, this high - cost expense is allocated to each product, significantly increasing the cost.
Debugging cost: The five - axis CNC machine tool takes 8 hours to debug. The machine in the CNC machining industry is charged by time. The equipment depreciation and labor costs total approximately 140 dollars (¥1000), and the single - piece allocated equipment debugging cost is approximately 8.4 dollars (¥60). Although the machine does not produce products during the debugging process, the cost still needs to be calculated, further increasing the cost burden.
Profit margin: Considering that low - volume production factories generally set the profit margin at around 20% to maintain daily expenses. Combining the above - mentioned costs, the final unit price of this product is approximately 35 dollars (¥250) per piece.
The key factor behind this is that one - time investments such as programming costs, fixture and jig costs, and debugging costs account for 60% of the total cost, which is extremely high. Moreover, when debugging new products, although the machine equipment does not produce products, it still needs to be charged, resulting in increased costs.
2. High - volume production: Cost optimization under economies of scale
Looking at oem parts machining in the automotive industry, an automotive manufacturer purchases cnc auto parts with an order quantity of 2,000 pieces.
Programming cost: The standardized programming process makes the programming cost allocated to each piece almost negligible. With the expansion of production scale, the programming cost is effectively diluted.
Fixture and jig cost: Custom fixtures can be reused, and the cost allocated to each piece is almost negligible. Compared with low - volume production, the cost is significantly reduced.
Debugging cost: After the production line is debugged and matured, subsequent batch production does not require long - term debugging, and the cost is significantly reduced. The continuity and stability of production reduce the cost consumption brought by debugging.
Improvement in processing efficiency: The automated production line realizes 24 - hour continuous processing, and the single - piece working hours are reduced from 20 minutes to 8 minutes, greatly improving production efficiency and reducing the production cost per unit time.
Profit margin: Due to high - volume production, the factory adjusts the profit margin to around 10%, and the final unit price of the product is approximately 8.4 dollars (¥60) per piece.
The key here is that multi - station machine tools can complete turning, milling, drilling and other operations at one clamping, reducing the number of clamping times and greatly improving equipment efficiency. As the output increases, the costs of programming, fixtures and jigs, and debugging allocated to each product are greatly reduced. At the same time, automated inspection equipment reduces the defect rate from 0.8% to 0.2%, reducing rework costs. In addition, the factory further improves production efficiency by reasonably arranging production plans and reducing equipment downtime
II. Injection molds: The game between mold costs and production batches
1. Low - volume production: Mold costs devour profits
In the field of plastic parts manufacturing, a start - up company develops medical plastic molding samples with an order quantity of 200 pieces.
Mold cost: The design and manufacturing cost of high - precision medical molds is approximately 11200 dollars (¥80000), and the cost allocated to each piece is approximately 560 dollars (¥4000). In low - volume production, the mold cost is the absolute majority, accounting for more than 95% of the total cost.
Mold installation and debugging cost: Each production requires mold installation and parameter adjustment of the injection molding machine. Regardless of the production quantity, mold installation and debugging take the same amount of time, and the same amount of debugging materials are wasted by labor. This part of the cost is approximately 140 dollars (¥1000), and the cost allocated to each piece is approximately 7 dollars (¥50). This cost does not decrease significantly with the increase in production quantity and cannot be ignored in low - volume production.
Design change cost: During the trial - mold stage, 3 - 5 modifications may be required, and each modification costs approximately 140 - 420 dollars (¥1000 - ¥3000). Design changes further increase the cost of low - volume production.
Profit margin: Considering that the profit margin of low - volume production is set at 20%, the final unit price of the product is approximately 58.8 dollars (¥420) per piece.
Alternative solution: For low - volume production of injection molds, in addition to production processes such as 3D printing or replica molding, there is also the "rapid mold" solution. The life of rapid molds is 2000 - 10000 times, and the mold price is half as cheap. JSJM can make such rapid molds, providing a more cost - effective choice for low - volume production needs.
1. Low - volume production: Mold costs devour profits
In the field of plastic parts manufacturing, a start - up company develops medical plastic molding samples with an order quantity of 200 pieces.
Mold cost: The design and manufacturing cost of high - precision medical molds is approximately 11200 dollars (¥80000), and the cost allocated to each piece is approximately 560 dollars (¥4000). In low - volume production, the mold cost is the absolute majority, accounting for more than 95% of the total cost.
Mold installation and debugging cost: Each production requires mold installation and parameter adjustment of the injection molding machine. Regardless of the production quantity, mold installation and debugging take the same amount of time, and the same amount of debugging materials are wasted by labor. This part of the cost is approximately 140 dollars (¥1000), and the cost allocated to each piece is approximately 7 dollars (¥50). This cost does not decrease significantly with the increase in production quantity and cannot be ignored in low - volume production.
Design change cost: During the trial - mold stage, 3 - 5 modifications may be required, and each modification costs approximately 140 - 420 dollars (¥1000 - ¥3000). Design changes further increase the cost of low - volume production.
Profit margin: Considering that the profit margin of low - volume production is set at 20%, the final unit price of the product is approximately 58.8 dollars (¥420) per piece.
Alternative solution: For low - volume production of injection molds, in addition to production processes such as 3D printing or replica molding, there is also the "rapid mold" solution. The life of rapid molds is 2000 - 10000 times, and the mold price is half as cheap. JSJM can make such rapid molds, providing a more cost - effective choice for low - volume production needs.
2. High - volume production: The "dilution effect" of mold costs
When a professional medical injection molding companies mass - produces medical device plastic molding, the order quantity reaches 100,000 pieces.
Mold cost: The mold cost allocated to each piece is only approximately 0.1 dollar (¥0.8) (with a mold life of 500,000 times). With the significant increase in production quantity, the mold cost is greatly allocated, and the unit cost approaches zero.
Mold installation and debugging cost: Due to the large number of production batches, the mold installation and debugging cost allocated to each piece is almost negligible. Multiple productions effectively control the mold installation and debugging cost.
Processing cost: The high - speed injection molding machine produces 12 pieces per minute, and the electricity cost + labor cost allocated to each piece is approximately 0.1 dollar (¥0.5). The efficient production equipment reduces the processing cost per unit product.
Automation efficiency improvement: Robotic part picking and on - line inspection reduce manual intervention, and the efficiency is increased by 40%. The application of automation technology improves production efficiency and reduces labor costs.
Efficiency improvement without machine shutdown: By optimizing the production process, the equipment can be continuously produced without shutdown, greatly improving production efficiency and reducing unit costs.
Profit margin: Due to high - volume production, the factory adjusts the profit margin to 10%, and the final unit price of the product is as low as approximately 0.8 dollar (¥5.5) per piece.
When a professional medical injection molding companies mass - produces medical device plastic molding, the order quantity reaches 100,000 pieces.
Mold cost: The mold cost allocated to each piece is only approximately 0.1 dollar (¥0.8) (with a mold life of 500,000 times). With the significant increase in production quantity, the mold cost is greatly allocated, and the unit cost approaches zero.
Mold installation and debugging cost: Due to the large number of production batches, the mold installation and debugging cost allocated to each piece is almost negligible. Multiple productions effectively control the mold installation and debugging cost.
Processing cost: The high - speed injection molding machine produces 12 pieces per minute, and the electricity cost + labor cost allocated to each piece is approximately 0.1 dollar (¥0.5). The efficient production equipment reduces the processing cost per unit product.
Automation efficiency improvement: Robotic part picking and on - line inspection reduce manual intervention, and the efficiency is increased by 40%. The application of automation technology improves production efficiency and reduces labor costs.
Efficiency improvement without machine shutdown: By optimizing the production process, the equipment can be continuously produced without shutdown, greatly improving production efficiency and reducing unit costs.
Profit margin: Due to high - volume production, the factory adjusts the profit margin to 10%, and the final unit price of the product is as low as approximately 0.8 dollar (¥5.5) per piece.
III. Cost comparison and industry application suggestion
1. The cost critical point of CNC machining
When the order quantity exceeds 2,000 pieces, the unit cost of CNC machining begins to approach that of injection molds. At this stage, enterprises can adopt a process integration strategy, using multi - axis machine tools to complete complex processing in one clamping, reducing secondary processing costs and further optimizing costs.
When the order quantity exceeds 2,000 pieces, the unit cost of CNC machining begins to approach that of injection molds. At this stage, enterprises can adopt a process integration strategy, using multi - axis machine tools to complete complex processing in one clamping, reducing secondary processing costs and further optimizing costs.
2. The economic scale of injection molds
When the mold cost is approximately 11200 dollars (¥80000), at least 10,000 pieces need to be produced to make the unit price lower than approximately 1.4 dollars (¥10). To control risks, enterprises can adopt a mold classification strategy, using economic molds (such as aluminum molds) to reduce initial investment, which is suitable for the verification stage. At the same time, complete DFM (Design for Manufacturability) before mass production to avoid later mold modifications and reduce unnecessary cost expenditures.
IV. The selection logic of typical industries
1. Medical industry
In the low - volume production scenario, such as the production of customized implants, medical cnc machining will be used. Although the unit price is high, the demand is clear, and the profit margin can be maintained at around 20%. When mass - producing products such as syringes and catheters, medical injection molding effectively reduces costs through economies of scale, and the profit margin is adjusted to 10%.
2. Semiconductor industry
For small - batch requirements such as Component test fixtures for semiconductor industry, CNC machining can quickly respond to R & D needs. When producing large - batch products such as the casings of parts of semiconductor equipment, mass production with injection molds can reduce costs by 80%, and the profit margin is maintained at around 10%.
3. Automotive industry
In the prototype vehicle development stage, the low - volume production of cnc auto parts helps to shorten the market launch cycle. When mass - producing products such as instrument panels and bumpers in plastic parts manufacturing, million - level mass production can be achieved, reducing costs through scale, and the profit margin is 10%.
V. Summary: Cost curve and decision - making model
The decision - making formula is: Total cost = Fixed cost + Variable cost × Quantity. CNC machining shows the characteristics of high fixed cost and low variable cost; injection molds have extremely high fixed costs and extremely low variable costs.
In actual decision - making, in low - volume production, give priority to CNC machining (such as custom plastic parts), or adopt alternative processes such as 3D printing, replica molding, and rapid molds for injection molds. At this time, the profit margin is about 20%. In medium - volume production, carefully evaluate the mold cost and long - term demand (such as 2000 - 10000 pieces), and the profit margin is 10% - 20% depending on the situation. In high - volume production, decisively adopt injection molds (such as the mature solutions of industrial molding corporation), and make full use of the efficiency improvement advantages brought by non - shutdown, with a profit margin of about 10%.
If you have CNC - machined parts or injection molds to be processed, please feel free to send the drawings to JSJM. Our professional team will provide you with accurate price estimates based on the cost logic described in this article and combined with actual process details, helping your project to proceed efficiently.
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