Starting a precision cnc machining business 3

[proaxiz]

Hi guys

I have joined recently,i would just like to get some insight,advice,motivation on how to go about starting a precision cnc cadcam prototype manufacturing business?I have given it some thought as to what my basic requirements would be,well i guess it all depends on the type of components,the complexity,tolerances etc.I manage to get some quotations for a 4axis machining center,manual lathe and milling machine,measuring equipment,and your basic engineering tools,pro-engineering software for manufacturing purposes and for basic design models,well it all sounds so simple as to get quotations but in order to implement the plan of action financing this setup is imperative,my question to you guys is how successfull can such a business be in the present global economic climate?I am presently residing in South Africa and would like to know what is the best way to get interest from potential clients prior to me having the equipment and premises?

 

[itsmoked]

Very hard to do right out of the blue. You don't just buy all this stuff and 'be in business'. It takes several years to be a competent machinist. Do you have previous experience? Are you a machinist now?

Keith Cress
kcress -

http://www.flaminsystems.com

 

[MikeHalloran]

Tool up _only_ to do the stuff that _only_ you _personally_ can do to your satisfaction.

Subcontract everything else.



Mike Halloran
Pembroke Pines, FL, USA

 

[highspeedmachinist]

I have found that decisions you make can come back to haunt you. If you create a post for a machine/machines you may likely have to update old programs. Then industry standards on modular tooling and the hole patern you elect to use are carved in stone. These issues, and others, need to be properly addressed prior to establishing a reputation and or forte of a given business. Then you have to give considerable thought to the support groups as a whole to keep things running smoothly. Most folks these days need to come to grips with the fact that they are mosst value add in establishing processes.

 

[proaxiz]

Thanks guys for your input,well what im doing at present is to get some letters of intent in order to show the financial institutions,i know that technology is increasing rapidly and soon if not already the equipment and software that is required for this start up business will soon have to be upgraded,but i guess you have to start somewhere,if the business succeeds the next step would be to strive for iso standards in order to export components if necessary,well maybe i might be living in my own little dream,but wish me luck guys and maybe your company can someday outsource component manufacturing to Proaxiz,afterall it will be more cost effective

 

[qchess]

Keep us posted with your progress.

 

[jhartsock3]

I would suggest a two step process that has worked for a couple of the people I have worked for. Don't worry about the equipment right away worry about the customer. By that I mean find a couple of shops that if you get the customer you can far the work to. As you grow your customer base you can start adding equipment by looking at your customers and figuring which will require simalar machines. And buy a machine suited for those parts start with those parts and grow from their. And above all else stay diverse and think many companys not just one. Putting all your eggs in one basket never good. I would try to keep one or two companys about 50 percent of work load. And several companys the other 50 percent.

 

[proaxiz]

Hi guys

Thanks for your constructive input,outsourcing machining work to other machine shops is not a good idea because the customer,client wants to see your setup,your measuring equipment etc,...well i managed to get a couple of letters after approaching a couple of companies with the flyers i had printed,i will attach the flyer if you guys want to browse,well letters cannot really be depended on but its a start i guess,but i have a major obstacle at present ,the fact that i have judgements against my name for arrear accounts i cannot proceed until i clear these debts,im really disappointed because the letters i received is from industrial designers,a sattelite manufacturing company and some research science institute and they normally use machine shops for interesting components,well at present im working shifts for an automotive engine cylinder block manufacturer ,these cylinder blocks is mainly used for trucks,generators,luxury boats etc.....I just hope and pray that my financial situation will improve,once again i really appreciate your advice

 

[axym]

proaxiz,

I looked at the flyer you attached. Visually, it looks great - the graphics and layout look very professional. The text needs some improvement though. There are some misspelled words - competitive, integral, specializing. The bullet point starting with "Scientists, design engineers, ..." is long and rambling. Have someone look it over for grammar, capitalization, etc.

Evan Janeshewski

Axymetrix Quality Engineering Inc.

http://www.axymetrix.ca

 

[ajack1]

I do not wish to sound disrespectful, but why would any company give you meaningful letters of intent?

There are many companies out there at the minute fighting tooth and nail for jobs that are fully equipped and have all the machinery just waiting to “hit the button”. You will somehow need to stand out from the crowd and as has been stated above the spelling on your flyer does this but for all the wrong reasons.

Finally I fail to see how you will be competitive, you say you have a bad credit history, so if and when you can get loans they will be at a higher rate than those available to companies with a good credit history making your overheads greater than theirs and even more than companies that are established and only need to have one machine at a time on credit.

I would put some serious though and research into this before you get yourself in a real financial mess.

 

[Facewithasmile]

I want to encourage you to start your company. I had the oportunity in my career to be out of work in the past. I refused employment in many machine shop companies that were being run from home kitchens, bedrooms, and basements. Ten years later I found myself out of work again. To my amazement many of these home based companies grew to Industrial Park Tennants with multi million dollar yearly sales. Many of the owners remembered me and were very happy to refuse to hire me for spurning them in the past.
I worked for many years at the Allied-Signal Aerospace Division as a machinist. We were a state of the art CNC machine shop doing work for every military and commercial Aircraft made in the United States. To cut their costs, much of the actual machine shop work was done at shops with less than 10 employees. Some of these shops had dirt floors, and not a single piece of computerised equipment, and places of business that resembled dungeons. I have also seen and visited operations that only have table top manual lathes and milling machines with thousands of dollars a week in sales. Become friends with you co-workers that make your fixtures or repair the machines. They are a wealth of free knowledge. Good Luck - Do not be discouraged.

 

[proaxiz]

Hi guys

I have noticed that most of you guys are abroad,just to give you an idea im in Cape Town,South Africa...Axym i appreciate your concern regarding spelling,capital letters etc,my focus at the time was more to try and capture the potential client regarding machining of components,i will appreciate if you can edit the flyer and send it,i will then approach the graphic designer and have it re printed,well if she is still working at the same graphic design studio that is?I have captured those images with my mobile phone after completing the machining thereof,the wind up flashlight is the end product which was manufactured in China,i did however machine the exact same components using a resin used in the rapid prototyping industry,approached a graphic designer with these images and some engineering magazines in order to get the layout,....ajack1 i managed to get a couple of letters from companies but the only problem i have is judgements on my name,i know it will be a financial concern if and when i manage to apply for finance in the future but i guess thats the chance that one has to take,afterall i would only get a 4 axis machining center,pro-engineer software to drive the machine,air compressor,manual lathe,milling machine,precision measuring equipment ( external micrometers,internal bore micrometers,depth mics,marble table and various other important instruments to get started )....Facewithasmile i really appreciate your enthusiasm regarding starting a machining company but believe me without clients and finance its all a pie in the sky,if only i could find an investor it will be awesome but if not im basically stuffed,it sounds as if you have intense machining capabilities within the aerospace industry,at present im not progressing at all due to this setback but maybe its not the right time to start a manufacturing business in South Africa,well thats only my opinion i guess....I will still persevere to try and get my name cleared if possible

 

[silveringchap]

Successful entrepreneurs are proactive people and therefore take risks.Henry Ford apparently said 'if you think you can or you think you cant your right'.Trouble is you can't run before you can walk and I think in your case its gonna be about 'how you do it' not 'if you do it'.I think as facewithasmile said,you can start small.Remember its not all about having the machines, you need tooling,coolant,lube oil,workholding eqpt and the time to make the product, design and build any jigs/fixtures and money to buy special cutters/materials.
There is a lot of planning.Dont forget also that you can sub work out like your fixtures etc.

 

[larrylcoyle]

While I hate to be a little negative, if you have bad credit, can you explain to me one thing? How do you intend to purchase the equipment you will need to be able to produce the products you envision? A simple 4-axis CNC is not a cheap investment for a quality piece. Just thinking...



Larry Coyle
Managing Partner
Cylinder Head Engineering, LLC
CNC Porting
De Soto, KS 66018

 

[woodyrod]

Hmmm, this sounds rather close to home for me.

I can't say much but that only those that don't fail, have never achieved anything.....I call failure a learning opportunity

Start small. Meaning, really small. Such as bench top gear. It is not the gear, it is the operator. Don't let anyone tell you that you will never succeed without the newest and best gear. Read some Freud, you will see that using Freudian logic, what these people mean to say is: "I can't do the job without the latest gear..."

I make rifle actions. That is it, nothing more, nothing less. Small items, fairly low production numbers. These could be done using a 6 x 24 inch lathe and a tiny Chinese mill. I now have a Largish CNC machining center, only due to the need to expand into other markets, and much bigger volumes.

There can be a lot of money in niche markets. Making one small specific item (like a Remington firing pin, or bolt handle), and doing it better / cheaper / faster than others (not necessarily all of these at the same time).

Keep going mate, it is only your mind that will ultimately hold you back.