When doing a manufacturing business, buying a CNC machine is just a small part of the job; the real task is to find out how you can earn a net positive ROI from employing that CNC machine. No matter whether you’re buying a brand new CNC machine or a used one, they’re costly machines, and to make a profit out of them, you need to be very strategic about each one of your financial moves.
Manufacturing can be a tough job at times, which may harm your profit earning potential, so in this blog, we will discuss with you some high quality tips that will help you earn the maximum ROI from your CNC machines.
Top 7 Expert Tips to Get Maximum ROI from a Used CNC Machine:
Here are the main tips that you need to follow to get a net profit ROI from a used CNC machine:
- Make a clear revenue plan: Start by making a basic blueprint about how you are planning to earn the ROI. Your revenue plan should influence the machine you’re planning to buy or the financing method you’re going to use. Here are some things you need to check before making the revenue plan:
- The industry you’re trying to jump in.
- The products you’re going to manufacture.
- The average price point of that product and the volume of sales you can expect.
- How much expected revenue can you earn within 12-24 months?
Calculating all these factors will help you set up a good budget for purchasing a used CNC machine, and then you can look for the one that is most financially suitable for you.
- Inspect thoroughly: One of the important ways to make a positive ROI using a CNC machine is to know what you are buying in the first place. The capabilities of the machine decide what parts you can machine and how long the machine can run, approximately. You will have to look out for different things before buying the used machines, like:
- Spindle speed, power, and torque.
- The number of axes of machines.
- The load the machine can handle.
- Electrical cabinet condition.
- Control boot/backup battery dates and software revision.
- Hydraulic and coolant systems.
- Make a solid preventive maintenance plan: Now, if you have made up your mind about which machine you’re buying, then you need to make a great preventive maintenance plan for the machine. Predictive maintenance can help you reduce downtime by up to 50% while extending the machine’s life by years. The predictive maintenance plan will include:
- Attaching IoT sensors for better monitoring of the real time conduction of the CNC machine.
- Continuous monitoring of operational parameters for predicting failures before they occur.
- Checking necessary things like coolant levels, wear and tear of spindles and axes, and the software condition.
- Implement quality control: Quality control is very necessary for minimizing the rework and scrap materials, which will further directly impact the profitability of the machining shop. Deploy statistical process control (SPC) techniques to identify trends before they result in defective parts. Here are things you need to do for better quality control:
- Use high quality tools and precision tooling methods.
- Use proper cutting parameters.
- Do proper calibration for maintaining tight tolerances and consistent quality.
- Train your operators: Another major step that you need to take for better machining and better product quality, which will further ensure more revenue and profit, is training your operators. The machine will be as valuable as the operator can value it. A well trained operator will be able to reduce setup time, minimize the scrap and rework, and identify issues with the machine before it turns fatal. The operator training should include:
- Control programming and macro usage.
- Best-practice setup and probing.
- Tool-life monitoring and preventive checks.
- Basic troubleshooting and spindle/axis checks.
- Use data to drive decisions: One of the main tips to gain revenue faster and have a smoother machining experience is by using data to drive decisions. Data will help you in making the ROI visible and actionable. Also, you can’t improve what you can’t measure, so make sure to employ a system to track the different Key Performance Indicators (KPIs). Here are some of the useful KPIs that you need to take care of:
- Machine utilization (% of available hours producing parts).
- Set up time per job.
- Scrap rate and rework hours.
- Mean time between failures (MTBF) and mean time to repair (MTTR).
- Cost per part (including all machine-associated costs)
Make data driven decisions to improve the overall efficiency of machining and accurately calculate how fast you can make a positive ROI.
- Machine Upgradation: Last and the most important is machine upgradation. Upgrading your CNC machine will surely cost more money in upfront spending, but it will help you earn even more over time. You can bring different upgrades to your CNC machine for better performance:
- Embrace automation by adding different features that will help you reduce operator cost and also do lights out machining for more revenue.
- Bring indexable cutters and high quality inserts.
- Bring proper holders and a balance of rotating tools.
Conclusion:
Earning ROI from a used CNC machine is not a tough or easy job, but a strategic job that needs proper planning and execution. Once you select a good used CNC machine, do proper financial planning, and then take the right steps at the right time, you will be able to achieve significantly positive ROI in the short term. If you’re planning to buy a CNC machine within your budget that will help you gain ROI faster, then check our collection of used CNC machines under $25K.
