When comparing machine blades from different suppliers, it’s tempting to judge them solely on the basis of the cost per blade. Typically, though, that is not a good measure of the cost-effectiveness of a machine blade.
To see the true measure of a machine blade’s cost-effectiveness, it is important to look beyond the Acquisition Cost of the blade – the cost of the blade itself – or even the cost of the blade spread over the number of parts cut. The true measure of a blade’s cost-effectiveness includes factors such as labor rates, machine burdens, set-ups and change-overs, and blade costs. Factoring in all these pieces of the puzzle will amortize the total costs of a job over the total number of parts generated, providing the true Operation Cost of a machine blade.
Acquisition Cost – the purchase cost – the actual price paid per blade (which may include factors such as shipping charges, purchasing costs, etc.)
Operation Cost – the cost per part cut – this is the total of the blade cost and all associated costs (such as set-ups, blade changes, coolant, burden, etc.) divided by the total number of parts cut
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