Author: Tupelo

  • The Hidden Cost of “Cheap Parts”: A Systems View of Manufacturing Decisions

    The Hidden Cost of “Cheap Parts”: A Systems View of Manufacturing Decisions

    By Dr. Jerusha Myrick

    Every purchasing agent has been told the same thing: “Get the lowest price.” On the surface, that sounds like good business. But if you’ve been in manufacturing long enough, you know e sometimes the “cheapest” part ends up being the most expensive decision you make.

    It’s Not Just About the Part

    When a quote comes in lower than the others, it’s tempting to move fast. Check the box. Hit the cost target. Keep things moving. But that one decision doesn’t live in isolation. It ripples through your entire operation.

    From a systems perspective, that lower price can trigger a chain reaction:

    • Delays on the floor because parts don’t fit quite right
    • Extra labor for rework or adjustments
    • Increased scrap
    • Missed deadlines
    • Strain on supplier relationships

    And none of those show up on the quote.

    The Real Cost Shows Up Later

    We’ve seen it happen more times than we can count. A company saves $0.20 per part. Looks like a win.

    But then:

    • The parts require additional handling
    • Production slows down
    • A rush order gets triggered
    • Expedited freight gets added

    Now that “savings” turns into thousands of dollars in hidden costs.

    Reinforcing the Wrong Outcomes

    In systems thinking, we talk about reinforcing loops. If a purchasing team is consistently rewarded for lowest piece price, they will keep selecting the lowest bidder. But if that decision leads to more problems downstream, the system quietly gets worse over time. It causes more firefighting, less predictability, and increases pressure on teams. Often, no one can quite pinpoint why.

    What High-Performing Teams Do Differently

    The best purchasing and operations teams don’t just ask, “What’s the price per part?” They also ask, “What’s the total impact of this decision?” They look for suppliers who deliver consistent quality, understand production realities, communicate early and clearly, and help prevent problems instead of reacting to them. They know reliability is not an added bonus, it is part of the cost structure.

    A Better Question to Ask

    Next time you’re reviewing quotes, ask, “Which option gives us the most stable, predictable outcome?” That’s where the real savings are.

  • Why Manufacturing Buyers Are Moving Toward Production Laser Cutting

    How modern fiber laser technology is reshaping part sourcing decisions

    By Dr. Jerusha Myrick

    Manufacturing buyers today face constant pressure to reduce lead times, control costs, and maintain reliable supply chains. As production schedules tighten and product changes become more frequent, traditional manufacturing methods do not always provide the flexibility required.

    This is one reason many purchasing agents are turning toward production laser cutting as a core part of their sourcing strategy.

    Fiber laser technology has evolved significantly over the past decade. What was once considered primarily a prototyping or short-run process is now widely used for high-volume production parts across industries including heavy equipment, transportation, agriculture, and industrial manufacturing.

    Understanding why this shift is happening can help buyers make more informed sourcing decisions.

    Speed and Lead Time Advantages

    One of the most immediate benefits of production laser cutting is the ability to move quickly from drawing to finished parts.

    Traditional tooling-based processes such as stamping require the design and manufacturing of dedicated tooling before production can begin. While stamping is highly efficient once tooling is in place, the upfront time investment can delay production when new parts are introduced or when designs change.

    Laser cutting removes that tooling step.

    Because parts are programmed directly from CAD files, production can begin quickly without waiting for dies or molds to be built. This can significantly reduce lead times for both initial orders and repeat production runs.

    For purchasing agents working within tight project timelines, that speed can be critical.

    Lower Upfront Cost for Many Production Parts

    Tooling costs can represent a significant upfront investment in traditional manufacturing processes. For high-volume parts with stable long-term demand, this investment may make sense.

    However, many production parts fall into a different category. They may require quantities of several hundred or several thousand pieces per year, but they may also experience periodic design revisions.

    Laser cutting allows manufacturers to produce these parts without the upfront tooling expense. The cost structure shifts toward production efficiency rather than tooling amortization, which can often produce a more flexible and financially practical solution.

    For purchasing agents responsible for cost control, this can create meaningful advantages.

    Consistent Precision and Repeatability

    Modern fiber laser systems deliver extremely precise cuts with tight tolerances and clean edges.

    Because the cutting process is digitally controlled, each part produced follows the exact same programmed tool path. This results in consistent part quality across production runs.

    In many cases, laser-cut parts require little or no secondary finishing before moving to the next step in fabrication or assembly.

    Consistency like this is essential for production environments where parts must fit seamlessly into larger assemblies.

    Flexibility for Design Changes

    In today’s manufacturing environment, product designs evolve frequently.

    A change that might require expensive tooling modification in a stamped process can often be implemented quickly in laser cutting simply by updating the program.

    This flexibility allows manufacturers to respond to engineering changes, product improvements, and market demands without the delays associated with tooling redesign.

    For buyers managing dynamic product lines, that flexibility can significantly reduce operational friction.

    Integration With Fabrication and Assembly

    Another advantage of production laser cutting is how easily it integrates with additional fabrication processes.

    Laser-cut components can move directly into operations such as:

    • bending
    • tapping
    • countersinking
    • welding

    When these processes are coordinated within the same supplier relationship, manufacturers often experience smoother workflows and reduced logistical complexity.

    This type of integrated fabrication approach can streamline production while maintaining high quality standards.

    Choosing the Optimal Manufacturing Solution

    There is no single manufacturing method that is always the right answer.

    In some situations, stamping remains the most efficient option, particularly for extremely high-volume parts with stable designs.

    However, for many production components, laser cutting represents the optimal balance of flexibility, speed, and precision.

    Purchasing agents who understand the strengths of each manufacturing approach are better equipped to select the right solution for their specific application.

    As fiber laser technology continues to advance, its role in production manufacturing will likely continue to expand.

    About Laser Precision Cutting

    Laser Precision Cutting provides high-accuracy fiber laser cutting services designed to support production manufacturing. Our team works with manufacturers to deliver consistent quality, reliable lead times, and fabrication capabilities that support real-world production environments.

  • Smart Procurement for Production Manufacturing

    Smart Procurement for Production Manufacturing

    Cheap Parts Are Expensive: What Purchasing Agents Know About True Manufacturing Cost

    By Dr. Jerusha Myrick

    Purchasing agents often face pressure to reduce costs. Quotes are compared, spreadsheets are reviewed, and the lowest price can seem like the obvious choice.

    But experienced buyers in manufacturing environments understand something important: the cheapest part on a quote sheet is rarely the least expensive part in production.

    When parts arrive late, fail tolerance checks, or require rework, the real cost quickly multiplies. Production downtime, assembly delays, and quality issues can turn a small purchasing decision into a much larger operational problem.

    The Hidden Costs Buyers Learn to Watch For

    1. Tolerance Issues: If parts do not meet required tolerances, assemblies may not fit properly. This leads to rework, scrap, or adjustments on the production floor.

    2. Inconsistent Quality: Suppliers who cannot maintain repeatability create unpredictable manufacturing outcomes.

    3. Delivery Delays: Late parts can shut down production schedules and disrupt entire supply chains.

    4. Poor Communication: When suppliers are difficult to reach or slow to respond, purchasing agents lose valuable time resolving issues.

    The Real Role of Procurement

    The best purchasing professionals are not simply finding the lowest price. They are responsible for identifying the optimal solution for their organization.

    When I taught Management Science at UNC Asheville, this concept was central to how we evaluated decision making. The optimal solution considers not just price, but the full system impact of a decision.

    In manufacturing procurement, that means evaluating:

    • reliability
    • tolerance capability
    • delivery performance
    • supplier communication
    • long-term production consistency

    What Experienced Buyers Look For in a Supplier

    Experienced purchasing agents tend to prioritize suppliers who demonstrate:

    • consistent part quality
    • clear communication
    • reliable lead times
    • repeatable production capability

    These factors protect production schedules and reduce operational risk.

    Final Thought

    Manufacturing organizations succeed when procurement decisions support reliable production. Price matters, but reliability and consistency often matter more.

    In the long run, the suppliers who help maintain stable production are the ones that deliver the greatest value.

  • Laser or Stamped? Choosing the Optimal Solution for Production Success

    Laser or Stamped? Choosing the Optimal Solution for Production Success

    Laser or Stamped? Choosing the Optimal Solution for Production Success
    Dr. Jerusha Myrick

    In manufacturing, the question isn’t simply “What’s the cheapest part?”

    The real question is:

    What is the optimal solution for our production, budget, and long-term operational flexibility?

    When I taught Management Science in the Business Department at UNC Asheville, we spent significant time analyzing decision models that help organizations determine the optimal solution, not just the lowest immediate cost, but the best overall outcome when considering risk, flexibility, and total system impact.

    TThat same principle applies when evaluating laser cut parts versus stamped parts.

    Tooling Investment: Upfront Cost vs. Flexibility

    Stamped parts require tooling.
    Dies can cost thousands (sometimes tens of thousands) of dollars before production even begins.

    That means:

    • Capital approval
    • Tool build time
    • Testing and adjustments
    • Financial risk if the design changes

    Laser cutting requires no hard tooling.

    Parts are cut directly from CAD files. If a revision is needed, the file is updated, and production continues.

    From a management science perspective, tooling introduces fixed cost and rigidity. Laser cutting reduces fixed investment and increases adaptability. In many production environments, this moves the decision closer to the optimal solution.

    Lead Time and Speed to Production

    Stamped parts involve:

    • Tool design
    • Tool manufacturing
    • First article testing
    • Possible revisions

    Laser cutting allows:

    • Immediate nesting
    • Rapid setup
    • Faster turnaround

    When speed to market matters, flexibility often becomes a critical variable in determining the optimal solution.

    Volume Considerations

    Stamping typically makes financial sense when:

    • Annual volumes are extremely high
    • Designs are stable
    • Production runs are long-term and predictable

    Laser cutting is often ideal when:

    • Volumes are low to mid-range
    • Demand fluctuates
    • Multiple part variations are required
    • Engineering revisions are likely

    In management science terms, when variability increases, rigid systems become less efficient. Flexible systems often produce the optimal outcome across a wider range of demand scenarios.

    Cash Flow and Inventory Strategy

    Stamping often requires larger production runs to justify the investment in tooling.

    Laser cutting allows manufacturers to:

    • Order smaller batch sizes
    • Reduce excess inventory
    • Improve cash flow
    • Adjust production as demand shifts

    For purchasing agents focused on lean manufacturing principles, reducing carrying costs and preserving working capital is frequently part of the optimal solution calculation.

    Design Complexity and Precision

    Laser cutting excels at:

    • Intricate geometries
    • Tight tolerances
    • Complex cut patterns
    • Frequent design revisions

    Stamped parts may require additional operations for complex features, increasing handling and setup time.

    Secondary Processes Strengthen the Optimal Outcome

    At Laser Precision Cutting, we go beyond cutting. We provide:

    • Bending
    • Tapping
    • Countersinking
    • Deburring
    • Welding

    Consolidating secondary processes reduces:

    • Vendor transfers
    • Administrative overhead
    • Freight costs
    • Quality risk

    When you evaluate total system efficiency, reducing touchpoints often improves the overall optimal solution.

    So Which Process Is Right?

    If your application involves extremely high, stable annual volumes with minimal design change, stamping may provide long-term efficiency.

    If your production requires flexibility, faster turnaround, lower upfront capital investment, and scalable volume, laser cutting often becomes the optimal solution.

    The key is not choosing what is universally “better.”
    The key is identifying what is optimal for your specific production model.

    Let’s Evaluate Your Application

    Every project has unique constraints and decision variables.

    If you are evaluating laser cutting versus stamping, we would be glad to review your drawings and projected volumes and walk through the economics with you.

    📍 Laser Precision Cutting
    181 Reems Creek Rd. #3
    Weaverville, NC 28787
    📞 828-658-0644
    📧 sales@lpcutting.com

  • How Production Jobs Are Quoted And Why Quantity Matters

    If you’ve ever looked at a quote and wondered why the price per piece decreases when quantities increase,  you’re not alone. At Laser Precision Cutting, we believe informed customers make better decisions, so we want to pull back the curtain on how production jobs are quoted and what really goes into the price. 

    Below is an example of 2 parts quoted in quantities of 1, 5, 10, 25, 50, 100:

    Quoting Is More Than Just Cut Time

    It’s easy to assume a quote is based only on how long a laser runs. In reality, cutting time is just one piece of the puzzle. Every production job includes a set of fixed processes that happen whether we’re cutting 1 part or 1,000 parts.

    These include:

    • Programming and setup
    • Material sourcing and handling
    • Sheet loading and changeovers
    • Quality checks and documentation
    • Part sorting, packaging, and preparation for shipping

    The first four steps take roughly the same amount of time no matter the quantity.

    In addition, many jobs require secondary processes after cutting, such as:

    • Bending or forming
    • Tapping
    • Countersinking
    • Deburring and edge finishing

    Each of these steps requires equipment setup, operator time, and quality checks. Like laser setup, much of this time is required regardless of quantity.

    That’s why smaller orders often carry a higher cost per part; the setup and overhead are spread across fewer pieces.

    Why Unit Cost Decreases as Quantity Increases

    When you order higher quantities, those fixed costs are distributed across more parts. The result is a lower unit price, even though the total order value may be higher.

    For example:

    • A 10-part order with bending and tapping must absorb laser setup, press brake setup, tooling changes, and inspection across just 10 pieces
    • A 100-part order spreads those same setup and processing costs across 100 pieces

    The process is the same. The difference is how those costs are distributed.

    This is why production runs are always more cost-effective than very small lot orders, especially when secondary operations are involved.

    How Secondary Processes Affect Pricing

    Secondary processes add value by delivering parts that are ready to assemble or install but they also add time and labor. Pricing for operations like bending, tapping, countersinking, and deburring reflects:

    • Setup and tooling requirements
    • Machine time
    • Skilled labor
    • Inspection and quality assurance

    In many cases, the first bend or first tapped hole is the most expensive, because that’s where setup occurs. Additional parts benefit from that initial setup, which is why quantity plays such a big role in overall cost.

    Minimum Lot Charges Explained

    You may notice a minimum lot charge to bring the total to $120 on some quotes. This isn’t a penalty, it’s simply the baseline cost required to cover the time, labor, and resources needed to properly set up and run a job.

    Even the smallest production order still requires:

    • Programming and setup
    • Equipment and operator time
    • Secondary process setup (if applicable)
    • Quality control and documentation

    A minimum ensures we can deliver consistent quality, accuracy, and turnaround without cutting corners.

    Standardized Quoting = Consistency and Accuracy

    We use a standardized quoting system to ensure consistency across materials, cutting time, and production costs. This allows us to:

    • Quote jobs accurately and fairly
    • Maintain consistent pricing across repeat orders
    • Reflect real-world increases in material and operating costs
    • Provide reliable lead times and expectations

    Manufacturing costs have changed significantly in recent years, and our pricing structure reflects the realities of today’s production environment while still remaining competitive.

    How to Get the Best Value on Your Job

    If you’re flexible, there are a few ways to reduce cost per part:

    • Combine orders to increase quantity
    • Plan ahead for production runs instead of rush one-offs
    • Ask about alternate material thicknesses or nesting options

    We’re always happy to review options and help you find the most efficient approach for your needs.

    A Quick Note About Online Quoting:

    Our online quoting tool is intended for smaller quantities that fall below full sheet yield. Production pricing involves additional considerations and requires a detailed review by our team.

    If you’re planning a production run or evaluating higher quantities, we encourage you to reach out directly so we can provide pricing that accurately reflects production costs, quality requirements, and realistic lead times.

    Our Commitment to You

    At Laser Precision Cutting, our goal isn’t just to quote a job; it’s to be a reliable production partner. That means clear communication, honest pricing, and parts that meet your specifications every time.

    If you ever have questions about a quote, quantity pricing, or production strategy, give us a call. We’re glad to walk through it with you.