How can you optimize the cost of manufacturing outsourced CNC machining parts ?

Startups and SME often find it difficult to invest in capital-intensive CNC machines, but most projects that generate value and market demand require high-precision CNC machining services. In this context, CNC machining outsourcing becomes an excellent solution. It brings flexibility, cutting-edge technology, high precision, extensive expertise, and a one-stop solution to the manufacturing industry.

So how can we minimize the cost of outsourcing CNC machining? In almost all cases, project costs depend on the design of your parts, which is a crucial factor in the overall project cost design and manufacturing process. Below are some ideas and techniques for reducing the cost of outsourced custom parts, summarized by me as a professional engineer and current employee of Elimold, for your reference.

A brief understanding of the concept of CNC machining outsourcing

CNC machining parts outsourcing primarily involves entrusting the manufacturing of required parts to external specialized parts manufacturers. CNC contract manufacturing is favored across various industries due to its numerous advantages. It allows startups to avoid investing in expensive CNC machines, obtaining the custom parts they need through professional service providers. Instead, they can allocate more funds to material sourcing and new project development, focusing on key strengths such as design, assembly, R&D, and marketing. Even for large manufacturers (LSMs), it can reduce the demands on scalability and lean time management, thereby improving their performance. You simply delegate the CNC tasks to a CNC machining outsourcing partner, and they handle the rest.

Several techniques for controlling the cost of outsourced CNC machining of parts

The total cost of a project is influenced by numerous factors that affect the cost of outsourced CNC machining projects. As a professional procurement engineer, you should thoroughly understand all these factors to maximize budget utilization and make data-driven decisions. Below, I will summarize several factors that can reduce the cost of CNC machining custom parts projects, based on my experience working at Elimold.

Optimize part design tolerances based on the required functions of the product.

Requires parts with tight tolerances, which increases costs because they necessitate slower machining speeds, specialized tooling, and additional quality control. Before specifying tight tolerances, the functional requirements of each part should be carefully considered. Selecting tolerances based on actual performance needs can reduce machining costs without compromising quality.

If you are unsure about tolerance requirements, you can refer to ISO 2768 or ASME Y14.5, which provide guidelines for manufacturers to select appropriate tolerance levels. This helps ensure that parts meet quality requirements without incurring excessive costs. By adhering to these standards, parts can meet quality specifications without exceeding budget constraints. Therefore, before procuring custom parts, determine whether the various parts you require all need the precise tolerances shown on the drawings, or whether moderate tolerances may suffice to achieve the same effect.

The most complex part of disassembling the parts design

The more complex the design of a machined part, the higher the price of CNC services will be, as this task requires more resources from the CNC machining manufacturer. Generally speaking, complex and expensive materials may require more complex functions, and the use of more axes, such as five-axis machine tools, milling machines, or the need to manufacture prototype parts through metal 3D printing, will all increase production costs. Furthermore, manufacturing machined parts with complex designs may require manufacturers to customize fixtures and cutting tools, which increases the cost of the CNC machining process and services. Please remember that the more complex the part design, the more manufacturing processes, time, and CNC machine tools are required, which will automatically affect the service provider’s pricing, the cost of your CNC parts procurement, and make it difficult to control the overall cost of your project.

Optimize the design of threaded holes for CNC parts

If the parts you need to purchase have a large variety and quantity of threaded holes, it will affect the CNC manufacturer’s quote. This is because the size and depth of the threaded holes directly impact manufacturing costs. If the hole size and depth are unsuitable or do not meet requirements, it will increase the price of the machined parts. We generally recommend that the depth be limited to three times the hole diameter. Similarly, when you and your product design engineer determine the design of the parts you need to purchase, whether you are purchasing a few CNC prototype parts or a large quantity of custom parts, you must ensure that the engineer adheres to standard thread dimensions. This will allow you to control the overall procurement cost of the project. In my many years of experience, limiting the depth and adhering to standard thread dimensions can typically significantly reduce the price of parts.

CNC parts should avoid multiple thin-wall designs.

Please be prepared that parts with multiple thin-walled designs will typically be very expensive. Generally, parts with multiple thin-walled designs require stricter tolerance control and have a higher probability of machining failure. This is because even slightly increased force during machining can cause them to break, which is one reason why CNC part manufacturers raise their prices. Furthermore, the shape of the part may change or even deform during CNC machining. This can lead to machining failures, increasing costs and ultimately raising your purchase price. Therefore, to avoid this problem and reduce prices and machining services, you must communicate with product structure design engineers and optimize the multiple thin-walled designs of the parts, replacing them with thicker-walled parts that are less prone to breakage or deformation during machining, thereby reducing the project’s procurement costs.

Avoid designing parts that require multiple different manufacturing processes to complete the machining.

Parts that require multiple machining operations to complete typically have longer processing times and higher manufacturing costs for CNC parts. Therefore, designs that require multiple machining processes using different manufacturing techniques should be avoided. Custom CNC parts should ideally be designed to require only one or two manufacturing processes and avoid multiple surface treatments, focusing on the truly necessary and functional aspects of the design. I recommend that if you are sourcing parts that require multiple different manufacturing processes, consult with your company’s engineers to simplify the part design and improve manufacturing processes.

To avoid parts requiring multiple precision machining processes to complete manufacturing.

Finishing processes for CNC parts typically include anodizing, heat treatment, or special coatings to improve part quality. Your company’s engineers might think that multiple finishing operations are a good idea, but this increases costs. Therefore, to reduce project manufacturing costs and improve the quality of mechanical parts, you must avoid multiple finishing operations on CNC-machined parts. My experience is that you can consider using post-machining finishing instead of multiple finishing operations, which helps reduce part manufacturing costs and improve quality.

Order more

To ensure you can procure the necessary parts in a timely manner, and to ensure the project runs smoothly, you can combine various operations. However, instead of combining different operations, you can outsource different parts projects to a CNC parts manufacturer that can provide one-stop service. This is because the price of machined parts depends directly on the quantity of parts you order. By ordering large quantities of the same machining elements or multiple different parts, you can improve the manufacturer’s production efficiency, which greatly helps to reduce the price of CNC machining a single part.

Outsourcing CNC machining service providers can reduce costs by leveraging automation and smart technologies.

Automation and digitalization tools can streamline production processes, reduce labor costs, and mitigate the risks of human error. Through Computer-Aided Manufacturing (CAM), machinists can use software to design optimized toolpaths, shorten cycle times, improve accuracy, and save time by eliminating manual intervention in the production of complex parts. CAM software simplifies the precise production of complex parts with minimal human intervention, saving both time and labor costs. Furthermore, the introduction of automated quality control equipment, including automated inspection processes such as coordinate measuring machines (CMM) or laser scanning, provides rapid and accurate quality checks, helping to identify potential problems early and reducing rework and scrap costs. Finally, for large-scale production, robotic arms and automated loading and unloading systems offer efficient production methods while reducing labor costs and enabling machines to remain online and continuously operational.

How to choose a suitable CNC machining outsourcing service provider?

Choosing the right CNC machining supplier is crucial for manufacturing, impacting the efficiency, accuracy, and overall success of your project. Venturing into this selection process requires careful consideration of a variety of factors, not just cost.

First, you can investigate a company’s history by analyzing customer feedback, reviews, and case studies. A good reputation usually means a track record of consistently delivering high-quality work and completing tasks on time. Reliability is closely linked to reputation. Assess the provider’s ability to meet project timelines and consistently adhere to agreed-upon specifications. Look for signs of reliability, such as a robust project management system and a commitment to customer satisfaction.

You will also need to conduct an on-site review of the quality control processes and certifications of your outsourced CNC machining service provider. Certifications such as ISO demonstrate a commitment to international quality standards. Inquire about the steps taken to ensure precision, accuracy, and repeatability during the machining process. Inspect the technology and equipment used in the CNC machining service. State-of-the-art machinery is typically associated with improved precision and efficiency. Additionally, inquire about the provider’s maintenance agreements to ensure regular calibration and proper equipment maintenance.

Therefore, when you need to find CNC machining services, it is essential to assess the breadth of services offered. Choosing a supplier with diverse capabilities ensures a one-stop solution for all your CNC machining needs. This comprehensive approach not only simplifies the parts production process but also guarantees excellent control over the quality of the final product while controlling procurement costs.

Finally, the success of a CNC machining project largely depends on the expertise and experience of the execution team. An experienced team possesses a deep understanding of CNC machining dynamics, enabling them to handle diverse materials and make timely and accurate adjustments. Extensive experience minimizes the risk of costly errors and creates a collaborative environment that ensures successful project execution. Therefore, you need to thoroughly assess the experience of the engineering team you choose for outsourcing CNC machining services. If you are unsure, you can use Elimold as a benchmark.

Which industries benefit most from outsourced CNC machining services ?

CNC outsourcing is widely used in aerospace, automotive, medical, electronics, and industrial sectors. It meets stringent tolerance and certification requirements while improving flexibility and efficiency. By outsourcing, companies can reduce cycle costs by 20% to 30%, shorten delivery times, and simultaneously meet both batch and customization needs, ensuring accuracy and compliance, thereby gaining a competitive advantage.

industryTypical partsKey Requirements/Advantages
Aviation/DefenseComplex titanium, aluminum and Inconel alloy partsTolerance ±0.005 mm, AS9100 certification required.
Automobiles and EnergyHigh-capacity engine, valve and electric vehicle battery partsOutsourcing reduces cycle time by 20–30%.
Medical and laboratory equipmentSurgical instruments, implants, diagnostic shellsISO 13485 certification is crucial for traceability.
Electronic products and consumer goodsConnectors, housings, heat sinksRequirements for strict tolerances and decorative finishes
Industrial equipment and machine toolsFixtures, jigs, gearsFlexibility in small-batch production through outsourcing

Conclusion

After reading this article, you will have a detailed understanding of how to reduce the cost of procuring custom parts. For startups and SMEs looking to procure custom CNC parts in large quantities and on a long-term basis, as well as those needing to improve their current parts manufacturing methods, outsourcing the task to CNC machining service providers can have a significant impact. These services allow companies to manufacture the specific parts they need without having to build their own CNC machining centers, reducing project investment costs.

Elimold specializes in outsourced CNC machining services, from turning and milling to 5-axis CNC machining and other CNC services. We have extensive experience helping over 1,000 companies worldwide outsource the production of engineered parts. Our team of experts can meet your needs from prototyping, fixture machining, and testing to high-volume manufacturing of CNC parts. Start leveraging our CNC machining outsourcing advantages today to drive your business to greater success.

FAQ

Can outsourcing CNC machining improve efficiency?

Suppliers don’t require your company’s internal resources, resulting in an average 5-20% faster part delivery, and with SPC implementation, defect rates are below 30%. This allows you to focus on project R&D while ensuring smooth and scalable production without bottlenecks. Efficiency improvements are reflected not only in machining speed but also in logistics and supply chain integration.

Can I outsource prototyping?

Reliable suppliers can deliver functional prototypes within 3-5 days with tolerances as precise as ±0.01 mm. For complex geometries, outsourcing offers 5-axis machining and a variety of materials. This flexibility allows you to verify fit, function, and manufacturability without investing in expensive tooling, saving up to 40% on early development costs. Outsourcing prototyping is a fast and low-risk approach.

How to choose a precision CNC machining factory?

When choosing a precision CNC machining factory, evaluate their certifications (ISO 9001, AS9100, ISO 13485), quality key performance indicators (Cpk ≥1.33, OTD ≥95%), and equipment (3/4/5 axis, Swiss-type, EDM). You can also request FAI and CMM reports to verify their process capabilities. A good factory should be able to quickly scale from 100 to 10,000 units and provide a transparent cost model. Conduct on-site visits or request virtual audits to ensure compliance with lean standards, such as 5S management and integrated digital quality management systems.

Where can I find high-quality custom CNC parts suppliers?

You can find suppliers through industry directories, peer recommendations, and online platforms. To ensure reliability, pre-screen suppliers through Requests for Information (RFIs), requesting capacity data, machine lists, and case studies. Excellent custom CNC parts suppliers should have traceability (compliant with CoC, RoHS, and REACH standards), rapid prototyping, and scalable production capabilities. Of course, you can directly choose to work with Elimold; we can quickly deliver both simple and complex parts.

Why should I consider outsourcing my CNC machining tasks?

Outsourcing CNC machining tasks to external services offers several advantages, including cost efficiency, access to advanced technology, and the ability to focus on core business activities. This allows businesses to streamline operations and improve overall productivity.

Why choose Elimold for outsourced CNC machining?

Elimold provides outsourced high-precision CNC machining for industries such as aerospace, automotive, medical, and electronics. It is ISO 9001:2015 certified, ensuring consistent quality. You can save over 30% on costs compared to Western suppliers. We strive for fast delivery. You can receive prototypes within 3 days.

Why outsource CNC machining to China?

Offshore CNC machining may seem complex. However, outsourcing CNC machining to China is a good option due to low costs, on-time delivery, advanced capabilities, and the ability to handle large-scale production.

Scroll to Top