How is laser cutting cost calculated?

Like all manufacturing businesses, the cost of goods is determined by many factors. For a precision laser cutting service this is also true. Every project will require a review of the details given by the customer. It is vital for both parties to have clear lines of communication so the best cost can be offered. The following will be a guide to how the cost to your next precision laser cutting project will be determined: 

• Material Type and Thickness: Just about every new project a precision cutting service receives begins with the question “Can you cut “blank?’. Material choice and the needed thickness will determine what type of laser system is best for the job. Different systems can cut the same material but will vary in cutting speed. Additionally, cutting a thicker grade of material will increase the cut time and overall cost. The cost of the material can be high, especially if using a precious metal or a custom alloy. Many laser cutting service providers accept customer supplied materials or the additional material cost will be added if supplied by the service provider. 
• Geometry and Linear Distance: The simple form of a washer, with an I.D and O.D, and total linear distance of 300mm will cut faster than the same 300mm linear distance of a complex design with intricate features. The reason is in most cases the laser speed will need to run slower. 
•  Tolerance and Inspection: How precise your project needs to be is also a factor in determining cost. The same simple washer of 300mm linear distance will cost more if an AQL level inspection is needed with a tolerance of +/- 0.0254mm. Does it require 100% inspection or just first and last part inspection with a tolerance of +/- 0.127mm? It comes down to the time and the laser adjustments needed for the project. 
• CAD and Laser Set-up: Laser cutting machines require a set-up to be done including the material and laser system. This can be basic to using a set of known parameters called the “laser tool” or involve more engineering and system adjustments, which are done when the material is unknown and or the cutting profile is complex to the material used. Manufactures often “nest” parts to maximize material usage or tab part in the sheet to aid in the process or for post finishing plating for example. Custom nesting and tabs can add additional cost. 
• Handling of material Pre and Post laser: Materials can be extremely delicate and prone to damage if not handled properly. Laser operators may need to take additional care and methods to keep the surface free from scratches and marring. Some materials may need to be stored in a controlled environment and only taken to the laser system just before cutting. Precious metals and scrap needs to be accounted for to be recycled by the customer. 
• Packaging: All the efforts made by a precision laser cutting service can be lost if the completed parts are not packaged to prevent damage. Some projects require more than just using a box filled with those foam “peanuts”. Cost can increase if the packaging requires third party systems to be used like parts trays, gel-paks, custom plastic boxes and so on. Additional packing requires more labor and time. 
• Finishing: Post laser processes are common and do add to the final cost. Finishing methods like sanding, passivation, tumbling, anodizing and powder coating are some of the post processing that may be required. In addition to added cost, it will add additional lead time. 

As mentioned, communication with the customer is key in review. Knowing the quantities is another important element in establishing the final cost. R&D numbers generally do cost more as many laser cutting service providers have a minimum order amount. Keep in mind it is easier for a manufacturer to keep a machine operating and cut for example 10,000 parts, than to have many processed at quantities of 100 each. If your project is not at a high production level, but has potential to grow, the per unit costs will be lower in the production run.  

Laser cutting costs, like all manufacturing, is determined by numerous factors including the material type, the quantity, the geometry and inspection level required. Each project’s cost is determined by its own requirements and the best laser method and accompanying procedures needed to result in a high-quality precision laser cut component. 

How long does laser cutting take? 

Laser cutting services are subject to similar factors experienced by other manufacturing methods that affect manufacturing time. Precision laser cutting services also have factors unique to their industry. The combination of these determines how long a laser cutting job will take and since every job is unique, narrowing down to an average time is not possible. Laser cutting machines can produce parts in 10 seconds or over several hours. An understanding of the laser cut time is to know the determining factors involved and how production length is determined.  

• Material Type and Thickness: Material choice and the required thickness will determine the best laser technology used. Different systems can cut the same material but will vary in cutting speed. Is the material reflective or fragile? Laser cutting speeds are adjusted accordingly for quality cut. 
• Linear Distance: The programmed path of the laser is measured as linear distance. This is a combination of all cut features. More complex designs will increase the cut time as opposed to simplified geometry.  
• Tolerance and Inspection: Inspection of parts is always part of the manufacturing process. However, if additional levels are required such as AQL or 100% inspection, this additional time will be factored into the total lead time. 
• Quantities: A handful of R&D precision parts will indeed cut faster than a production run. Keep in mind that for mid to high level volumes, laser manufactures will nest parts to increase efficiency per sheet and reduce set up time. This in the end results in more parts per hour. 

Additional factors also influence the laser cut process and throughput. 

• Handling of material Pre and Post laser: Materials can be extremely delicate and prone to damage if not handled properly. Laser operators will take additional care to keep the surface free from scratches and marring.  
• Packaging: If the packaging requires third party systems to be used like custom trays, gel-paks, custom plastic boxes and so on. Additional time and labor will be needed. 
• Finishing: Post laser processes will add the lead time. Finishing methods like sanding, passivation, tumbling, anodizing and powder coating are some of the post processing that may be required and extend the final production window. 

What you can do to help?

Much of the success of a job is the communication between the customer and manufacturer. Knowing the following will aid in reducing the production time: 

• Consultation: It is highly recommended to reach out and speak with your preferred laser cutting service provider prior to submitting an order. Early discussions will inform the manufacturer of the details and can highlight any challenges like material availability and the proposed geometry. 
• Completed Design and CAD: file. All laser systems need this to program the cut path. 
• Material Selection: knowing what material is needed and if already in hand will speed up the process. 

Precision laser cutting services will use experience, technical and material knowledge, and communication to provide the best estimation for your project. Having a clear understanding of your project’s goals will certainly benefit in reducing the production time for a high-quality precision part and experience. 

How much does laser cutting cost per hour? 

Time is money. This adage is correct regarding laser cutting but is not the lone element regarding how the cost per hour is determined. Many aspects are considered and are subject to the requirements of each project. Experience, technical and material knowledge and selection of the best laser technology are just a few of the factors employed. Time can also result in a reduction of cost depending on the project and requirements. Calculation of the per hour cost for laser manufacturing includes the follow considerations: 

• Review of data and scope of work: Review of the CAD file or computer aided design file, is foremost in the process. This will inform the precision cutting service provider of the material, the grain direction to be used (if needed) the geometry, the tolerance, any post processing requirements.   
• Material costs: Is the material common like 304 SS or is it thin strips of molybdenum, for example. Materials already in stock will offer shorter lead times as opposed to materials that are custom ordered and may have lead times of multiple weeks or months from delivery. 
• The complexity of the cut: Does it need custom nesting or tabbing? Manufacturers are great at maximizing material usage and will nest parts together in order save material and produce more parts per sheet. Sometimes the parts need to be tabbed to prevent damage during the cutting process. Restrictions on nesting or how tabs can or cannot be used can add cost if it increases the production time. 
• The right system for the job: How fast in millimeters per second will the laser run is determined by the system used to reduce the cut time. This adjustment is part of what is called, the “laser tool”. This tool is adjusted to find a balance of efficiency and quality. 
• The tolerance and inspection level required: Precision laser cutting services, like other manufactures, have a standard inspection level. This ensures the manufactured parts meet the requirements. However, some industries require a higher level of conformance and additional inspection is needed like AQL, 100% inspection. The cost for additional quality inspection and certificates is considered for the overall processing. 
• The handling Pre and Post: Materials can be very costly and fragile in their nature. For example, extremely thin foils and brazing alloys may need extra care and handling. Their end use may reject any surface scratches or blemishes. The time and processes needed to ensure proper care is another factor. 
• Special Packaging: All manufacturers have procedures in place to ensure the time and effort to produce a precision part is not lost through inadequate packaging. Cost is added for projects where specific requirements are needed such as custom trays, custom foam and boxes, specific packaging quantities and at times special shipping methods.  
• Additional Finishing: Not all precision laser cut parts require a post finishing process, but those projects that do will have the cost of sanding, tumbling, passivation, anodizing, powder coating, and others added to the final cost.  

I mentioned time can reduce costs and this is how: By keeping production going, a manufacturer can save costs by not having to set up and produce numerous jobs over the same time frame. Having the ability to keep a laser machine in operation for several hours or perhaps several shifts will reduce the cost per hour and thus per unit. Production level projects will likely experience a significant reduction in the per hour cost. For production runs and recurring orders, often the factors mentioned in determining the per hour cost are executed in what is called a Process of Record. This will standardize each step, so the manufacturing process is the same for every order and keeps the cost down by using a set of approved materials, inspection level, geometry, packing and so on.