Milling Tips Machining economy In business today companies are always looking for better ways to make more profit how you utilize youre tooling has a dramatic effect on your overall production costs. In this episode we will discuss the basics of machining economy. Production costs are rising at a very fast rate. We all know this is true. Everyone is looking for lower prices. The point being: what this indicates is an imbalance between price and cost development. This situation has created a productivity gap that presents challenges to all companies today. To remain competitive you must close that gap. There many variables related to production cost and these variables can generally be broken into two categories. First, your fixed costs which are your overhead, labour costs, and of course your equipment costs. Then you've got your variable costs. You need to buy material and of course you're tooling. Our customers buy their own workpiece material, therefore the only way that we can influence material costs is to reduce your scrap rate. The actual cost of tooling only accounts for a small portion of the total manufacturing costs, but tooling, more specifically how you use it, can dramatically impact your overall costs and profits. Using the right tools, along with the innovative solutions lets you run your machines faster with improved cutting data resulting in reduced cutting time and component cost. For more smart tips contact one of our specialists or visit us at our Sandvik Coromant web site.