It's frustrating when dealing with sales representatives who have never touched a lathe and often give you a ridiculous quote. To better give an understanding and idea of what it takes I have written this page.
Here are some basics to try and reduce the cost.
Insert Radius - On the tip of each turning tool is a super hard insert made of carbide, the bigger the radius the faster roughing and finishing. The insert will leave a radius in every corner, that is often assumed to be 0.032" unless specified. The smaller the radius the slower the machine runs in order to achieve a certain finish, also the weaker the insert.
Grooving - A separate tool is required to make grooves, generally it's not a big issue on the outside of parts as it is the inside. The contact area of a grooving insert is quite large compared to other tools, so parts that are thin, long or flimsy will require a thinner grooving tool to combat tool chatter, caused by lack of rigidity. Thinner grooving tools means more machining time and poorer insert life. Internal grooving is considerably more difficult due to tool rigidity and groove depth. Grooving can greatly increase machining time and cost.
Threading - There are a lot of different threads, standard ISO unified and metric are often not an issue. Special buttress, mining and oilfield threads require inserts that are considerably more expensive, but with that requiring more difficult methods of measuring accurately. Internal threads require more tool rigidity, so deep bores require more expensive tooling. Smaller pitch threads have less contact area and therefore less chance of chatter. Thin, long and flimsy parts make threading more difficult due to rigidity. Large thread pitches make for extra difficulties increasing time and cost.
Drilling - Drills less than 0.125" diameter at a 5X depth become more difficult, the larger the drill the better stability and better coolant can get to the tip of the drill. I cannot drill more than 16 inches deep if the part can go inside my chuck, otherwise 8 inch depth is the maximum for parts 3 inches diameter or more. Drills generally don't bore an accurate hole with the exception of very expensive ones. Drills don't always go straight either, with the exception of buying special ones.
Boring - Drills are used to pilot out material for boring which achieves better finishes and accuracies. Generally a boring bar can go to a depth of 3X it's diameter, exceeding this increases the risk of chattering. A 0.5" boring bar might only do a minimum o 0.625" in diameter at a depth of 1.5 inches reliably. There are exceptions to these rules such as anti-vibration boring bars that will do 10X depth. They cannot rough as fast and are incredibly expensive, for example my 0.75" boring bar cost me $2500. Undercuts are very difficult in boring, sometimes requiring multiple bars and special orientations of the inserts, adding to cost.
Knurling - There are a few different types of knurling tools. The older method is known as bump knurling which requires significant pressure on the part. If the part is sturdy then it's not a big deal, but it often takes a few attempts to dial it in, it also doesn't like materials too hard or too soft. The second is pinch knurling, this reduces the pressure greatly but the tool is less universal, it again doesn't like soft or hard materials. Cut knurling is the method I use, material does not matter and cutting pressure is minimal, it is however very slow. Knurling becomes very slow on large diameters, adding to cost.
Setup - The setup time is where the majority of time is lost, and while there are some standard tools that often stay in place, not everything is standard. Just changing the jaws to hold material may take 10 minutes, then 10 minutes to install and set each tool, and 10 minutes to make a custom set of jaws. There is also time taken to program the machines, manually requiring some thinking and punching numbers, or on the computer and drawing up a design. There is no such thing as a 10 minute job on a CNC. I do my absolute best to reduce this time, many shops will charge a 1 hour minimum for setup time alone. A part might only take 2 minutes to run but an hour to setup. So for a single piece it could be $125 or for two pieces $130, so generally a quantity of 10 or more makes the most sense.
Tooling - Most turning can be done with standard tools, reading the above you can see difficult operations may require additional tools, something I don't have would need adding to the quote. There is also the factor of the insert wearing which is determined by material type, how hard it works and how long it works. The cost of inserts vary widely too, from $15 to $50 for turning and up to a few hundred for drilling. I make it the rule to charge $5 per hour of machining for steel and $10 per hour for stainless, that generally covers it, but sometimes increased if it's a more expensive insert. It is also the general rule to increase machining speeds until an insert breaks, with between 2 and 6 corners useable per insert. So if doing a run of multiple parts I'll charge $20 for an initial insert, if it's a one off then I won't.
These are the ends for a medieval pommel, a blacksmith customer. So while this part doesn't require a high grade of steel it does require a very good cosmetic surface. Hot rolled mild steel is the cheapest option when it comes to making a part, but it can be the hardest to achieve a nice surface finish. The chuck speed is dependent on the diameter of the part, the larger the diameter the less rpm's are required. So this piece might require 2000rpm minimum on the 3 inch outside, but requires 3000rpm at 1.5 inches. On diameters smaller than 1 inch on hot rolled steel I can often run out of spindle speed, there is of course other options to combat this but extra difficulty adds to price.
In this case I was supplied with cold rolled 1018 steel which is much easier to get a finish on. The outside of this part has an undercut on the back, this can add complexity by requiring additional tooling. My regular turning tool will achieve 40 degrees before it runs out of clearance, thankfully it was ok for this job. If there was not the clearance then I could have used a radius outside grooving tool, this would have run quite a bit slower. Ideally a pass needs to be made in one, an outside pass requiring one tool doing the first half and a second doing the second adds a possibility of inaccuracies. The slightest variance will mean the tools don't align and there will be an imperfection, that would be almost a certainty.
These parts were drilled to a depth of 3 inch using a 1.25" drill, no issues there . Then it was bored to 1.5 inches at a depth of 3 inches, again no issues as I have the space to use a large boring bar and are within the 3X rule. A threading tool was used to make a couple of grooves on the inside, these help the glue hold the pommel to the handle, not an issue to machine.
Lastly parting the part off is no problem in this case, however since I don't want it bouncing around the machine I would not part it all the way, then I could remove it with a mallet. I then had to machine a radius on the inside at the back. If it required accuracy then I would need to make a custom set of jaws to hold it, but in this case I could place an additional smaller chuck inside the main chuck, I could then grip it with the smaller chuck from the inside.
Overall it took me around 40 minutes to setup the machine, 30 minutes to run the parts and then maybe 20 minutes to setup and turn the radii on the backs. Around 1h30 for the machining plus an extra 10 minutes to design and make a drawing. At my shop rate of $120/hr that meant these cost the customer $200 in labour, $150 in material and a total of $350 for 6. Customer was please I made them for less than half they were quoted at other shops.

This part is made from aluminum, it is 6.25" in diameter and 0.75 inches tall. It requires turning, milling and anodizing.
I first need to get a quote on material, since this is aluminum it often comes in 1 inch increments at these sizes. I must also calculate how many pieces I get out of a billet and how long the billets should be. Since the customer only requires 12 pieces I do not need to be as efficient with material, they also have a difficult feature and the material is expensive, so overall ordering extra is a good choice. Each piece requires 0.75" material plus 0.125" for the part off, plus a safety margin of 0.125". The length of the material I can place in my chuck is limited to 6 inches due to how long my drill is. The jaw depth is 0.5 inches, I require 0.25 inches for the parting tool and an extra 0.25 inches for safety clearance.
Ordering a 6 inch long billet will yield me 5 parts, I therefore need a total of 3 billets. I could of course reduce billet lengths to gain the correct amount with minimal waste, I could also reduce the length of the third billet, but again a safety margin is a good option. The material quoted was solid 7" diameter at a cost of $700 total.
The first step would be to turn the outside of the billet from 7 inches to 6.3 inches, then bore out the inside to 3.75 inches. Aluminum is often considered like butter to machine, in the way it likes to stick to tools. It can be machined very quickly if there is plenty of coolant, it can be a disaster if a tool gets gummed up. I predicted the billet setup and roughing to take 2 hours total.
These parts require an undercut on the inside at the back, while it is possible to buy a tool to do this it is unnecessary. The part still needs to be parted and then faced again to make that side pretty, parting doesn't leave a good finish like turning would. The face also requires a special groove, the tool costs $300 while a box of inserts costs $240. It would take an hour to setup and program a part. Each part should take around 10 minutes each, so a total of 2 hours to machine them.
Second op requires some custom jaws made to hold the parts gently and accurately. Around 30 minutes to make the jaws and $60 for the jaws. The second op faces the part to the correct height and makes it pretty. The large radius is then turned into the bore. I would figure an hour to do all of this.
Third op is machining a custom set of jaws for the milling machine and then setting it up, another hour of time. The holes are drilled and tapped, again another hour.
Overall it takes 120min (billet rough) + 60min (setup) + 120min (Op1) + 30min (jaws) + 60min (Op2) + 60min (Jaw+setup) + 60min (drill + tap) = 8.5 hours
$700 (material) + $300 (tool) + $240 (Inserts) + $60 (Jaws) + $1020 (labour) + $20 (Jaws) + $60 (drill+tap tools) + $100 (Anodising) = $2500
The tooling and jaws last an extremely long time on aluminum, so if the customer was to order this again then they would be paying $680 less, or rather $1820.

This is again the blacksmith customer requiring pommels for the back of swords.
There is a total of 50 pieces at 1.95" diameter made from hot rolled steel. Each piece is 3.5 inches long. The general parting width is 0.125" and the maximum stock length I place in my machine is 20 inch, that means I get a maximum of 20 / 3.625 = 5.5", or 5 parts per length. Longer lengths of material down the chuck increase the strain on the jaws, I do not want to damage my machine. That would require 10 lengths of material, assuming no errors. I should also note that it is best practice to hold onto 2 inches of material, so the last part gives me 0.5 x 3.625 = 1.8 inches of material. I also need to account for an allowance for facing each part plus an additional gap for clearance from the parting tool to the chuck. To be safe I had the bars cut to 21 inches.
This part can be machined mostly with one tool, then the grooving tool does the back undercut and then parts off the piece, again not all the way as I don't want these being damaged.
It took me around 30 minutes to setup the machine, 10 minutes to make a design. It then took me around 5 parts to getting them running as fast as possible without breaking inserts or attaining the best finish possible. I would typically quote a job like this at 20 pieces per hour, 1 piece per 3 minutes, the undercut on the main profile means using a slower tool, the undercut on the back also requires a slower tool. So 2hr30 to make them, 40 minutes to setup and $20 to cover an insert. At a shop rate of $120/hr that comes to $400 in labour, combined with $300 for materials it comes at $700 for all 50 pieces. I was 60% cheaper than the person doing them before.

This part is about as easy as it gets, turning the outside and parting it off.
The customer wanted a total of 600 pieces in S7 tool steel and 600 pieces in 4330V. The material supplied for the S7 was 1.25 inch diameter and 1.50 inch diameter for the 4330V. The finished part with a diameter of 1.239 inches and a +- 0.001" tolerance.
The S7 is a very soft material making it very difficult to achieve a good surface finish, by increasing the cutting speeds this is possible but at the cost of insert life. Due to the sticky nature it means the parting has to be slowed down otherwise it gets jammed with chips potentially breaking the tool itself.
The 4330V is a lot harder but an absolute dream to machine. There is a lot more stock to remove but this material machines very well by creating nice chips. It has to be run at half the speed than the S7 otherwise the insert would burn out. I can run the parting tool at triple the feed rate and rough the outside very aggressively, literally a single pass.
Surprisingly these parts take the same amount of time to make even though one has larger stock.
I quoted this job at 50 parts per hour which equates to $2.50 each. That leaves me very little room for error. I used an outdated box of inserts on this job that owe me nothing, but was getting 50 parts per edge, a little low. With 4 useable corners per insert that yields me at 200 parts per insert. In total I used 6 inserts for turning and 2 inserts for parting. The customer supplied me with material so I was willing accept this small loss.
I managed to make 60 parts per hour on this job but combined with changing inserts and emptying chip strings every hour it averaged 50 parts per hour.
The goal in machining is to make material break into smaller chips, this is using the right speeds, feeds and insert. Depth of cut is also a major factor in this, so with the 4330V there was enough material to make it chip but not enough with the S7. The S7 left long strings which added to clean up time.
These are some pretty special custom bolts made in 4330 that the customer supplied the material ready cut. A total of 16 bolts to make with a stock diameter of 2.5 inches. The bolts are around 9 inches long, the shank 0.875" diameter. This is an example of a job that I charged by the hour, as in the customer was given a price after making the part. The material is high tensile and high performing, and a little more abrasive on tooling than other materials. Even with the higher properties this material is considered a favorite by machinists, it is so predictable to machine and chips very nicely.
Since the part is so long and thin it would require turning between centres, the chuck holds one end and the tailstock the other. This part required a bit of thought as it could not be done in a single operation and work holding needs to be solid in order to make them in a time efficient way.
I started by turning a step on one side to hold them in the jaws, the step stops the material being pushed down the jaws by the force of the tail stock. I then turned down a step on the other side, where the thread will go, so the tailstock can hold it on the outside with a cone. The material is then placed between centres and the middle section is machined, due to the undercut I had to use an insert with better clearance, but that means machining slower. Once the middle sections are done I hold that section in order to turn the head and face it to the correct length. I then make a special split bushing to hold the shank in order to machine the thread on the end. The bolt is placed in the milling machine to make the head hex. Lastly I take the bolt to a deburring wheel to remove any sharp edges.
This part required a total of 5 setups in the lathe and one setup in the milling machine. To quote this I would say 15 minutes per setup. The bush requiring about an hour to lathe and mill it. An hour for each minor operation such as turning the steps, threading and then 2 hours for the centre operation. 30 minutes to setup the milling machine, then around 2 hours to milling the hex's and debur.
75 min (lathe setups) + 60 min (Op 1) + 60 min (Op 2) + 120 min (Op 3) + 60 min (threading) + 120 min (Mill + Deburr) = 8.25 hours. At $120 per hour that would come to
$990, plus $40 in inserts, plus $50 in milling cutters, so I would quote this at $1080 with customer supplied material.
Since the customer went with the hourly option it took me slightly less time, they paid
$896 total for the job. So while I don't pad my quotes out with unnecessary time sometimes I can make a job faster than a quote, a bonus for the customer. Trust goes a long way and being honest is my policy.

These are a bunch of 5/16" diameter studs with two different threads at either end, a quantity of 40 pieces.
I had the material supplied and cut for $53.
There are several options in turning these to the correct length, one would be to face one side along with the thread, then face the other side in order to measure the length, do some calculations and then place it back in the machine to face to the correct length and turn on the thread, this requires a lot more input. The alternative is to bunch all of the pieces together in my wire EDM, that way it can cut the pieces all to the correct length and removes one step of human input. It took around an hour to cut both ends.
I can then place them in the lathe with a stop so that every piece will be the same, but with this method I don't have to individually measure each piece and cut accordingly. One side is turned and threaded to 1/4UNC and the other threaded to 5/16UNC.
It took me 1 hour to EDM the parts and then 2.5 hours to setup and turn the threads, so 3.5 * 120 = $420. Plus the material cost brings the job to a total of $473.

This is a very simple lathe job requiring 36 inch long tubes to be faced, bored and chamfered on each end. A smaller tube has the same treatment and is inserted into one side of the large tube. A hole is drilled in each of the larger tubes so that a spot weld can be placed to secure the smaller tube. Accuracy is not crucial but they all need to fit together, the length is also not crucial in this application, so cutting them 1/8" short for the saw blade width is not an issue.
There are three main aspects to this job, the material cost, how it is supplied and the machining cost.
Firstly is the material cost, which varies hugely, so for a job like this I like to be transparent with the customer. There are 200pcs in total, with 36 inch tubes of 3" OD x 2.5" ID tube and 6 inch tubes of 2.5" OD x 2.0" ID tube.
24ft length - 8 pcs/length, 25 lengths of 3 x 2.5 48 pcs/length, 4+ lengths of 2.5x2
20ft length - 6 pcs/length, 34 lengths of 3 x 2.5 40 pcs/length, 5 lengths of 2.5x2
Back in 2024 the cheapest I found was $5500 total.
Second it depends how the tubes are supplied, do I have to cut them down. Normally they come in lengths of 20 or 24 ft. To save time I would simply use a carbide tipped chop saw as this is mild steel. The small length I would price at 50 cuts an hour and the longer pieces at 25 cuts an hour, due to their weight and bulky nature.
The smaller lengths are faced, a small chamfer on the inside and a large chamfer on the outside. The part is flipped to do the same on the other side. I would expect to complete 25 pieces per hour. The larger lengths require a change of chuck in my machine to a manual one, to fit down the spindles bore. The face is cut and a small chamfer placed on the outside. The inside is then bored to allow the smaller tube to fit, and enough clearance that they are easy to assemble but not sloppy. Due to the weight and cumbersome nature I would place these at 15 pieces per hour.
Lastly I setup the large tubes in my CNC mill which will drill a hole in one side. The machine is fast but the parts are heavy, so we will mark this at 30 parts per hour. Then the smaller tubes are placed inside the larger and a weld filled in the hole to hold them in place, this would be around 30 parts per hour.
The time to make 200 pieces.
Cutting 200/50 = 4 hours 200 / 25 = 8 hours A total of 12 hours
Machining 200/25 = 8 hours 200/15 = 13.4 hours A total of 21.4 hours
Drill/Weld 200/30 = 6.7 hours 200/30 = 6.7 hours A total of 14 hours
That means labour is 47.4 hours for 200 pieces, and at $120/hr equates to $5688, or $28.44 part.
If I was to source the material then it would be $5500, combined with the labour a total of $11,188 or a cost of $55.94 per part.

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