Guidelines for Calculating Machining Hourly Rate

We tout this fact all the time in our marketing ... at Kentech Inc. we are MACHINISTS ... we cut chips, we programmed, we ran shop floors for years ... then we became software engineers and designers and built software products we saw were lacking during those years. What we refer to as Real World Machine Shop Software. 

As a result, many of our clients come to us to take advantage of that experience ... especially those just starting out. Since quoting and estimating is one of the first tasks a new shop needs to get right ... we get asked quite a lot of questions about these areas. Our KipwareCYC® ( machining cycletime estimating software ) and KipwareQTE® ( cost estimating / quoting software ) titles are two of our most popular titles. One of the "hot" topics we encounter during online presentations of these titles is often concerning the cost to charge for a machining or a shop rate. So we thought it was a good time to add a blog post with some guidelines we feel are simple enough ... but important enough ... that can get you to an accurate figure.

Since many shops will utilize an hourly rate as a basis for charging for machining time, this post is dedicated to some helpful guidelines on how to calculate that machining hourly rate. Below are some points we consider important when calculating the hourly rate for a particular machine. The areas requiring calculations include :

Equipment – Cost Per Hour of Operation ... a common formula :
(machine purchase cost + expected lifetime maintenance cost) / expected hours of operating life.

Direct Labor Cost per Hour ... a common formula :
(total annual labor costs + taxes + benefits + paid time off) / (total annual hours worked – breaks and training time)

Overhead Cost Per Hour  :
Any costs not directly involved in machining a part is overhead. These include costs for administrative staff salary, equipment, furniture, building lease, maintenance and office supplies. Calculate the annual costs of these, then divide by total labor or machine hours for the year. This will be your overhead cost per hour

Once the above costs are calculated … you can use the formulas and guidelines below to arrive at either a
“general” shop hourly rate or an hourly rate based on a specific piece of equipment.

General Machine Shop Hourly Rate ... a common formula :
Average overall shop rate = (average machine cost per hour + labor and overhead cost per hour) x markup

Machine Specific Hourly Rate ... a common formula :
(specific machine(s) cost per hour + labor + overhead cost per hour) x markup

Somewhat simplified ... and usually a work in progress as factors may change. It is important to gather all the figures in the formulas above as best you can ... as accurate as you can ... and to keep tabs on any factors that may change along the way.

Kenney Skonieczny - President
Kentech Inc.

You can check our all our Real World Machine Shop Software at our website :

www.KentechInc.com

It's Not Always Rocket Science

If you have visited our website ...  www.KentechInc.com ... at all you'll recognize the saying that is the title of this blog post. It is the mantra here at Kentech Inc. ... born from the decades of living and surviving on the machine shop floor ... from living and working in the "real world". When we talk with customers or conduct online demos with clients for our software ... they emphatically agree. But for those with whom we cannot connect directly ... we wanted to take a post to outline our visions and software design philosophy in depth ... to explain why we feel and what we mean by " ... it's not always rocket science."

Is this you with your CAD/CAM or MRP / ERP software?

For most machine shop and CAD/CAM software developers today ... it seems that the flashier the pictures and the more complex the user interface ... that would equate into the most innovative software. For most users of these products however ... the experience is best described as trying to get a drink of water from a firehouse. It's all just overkill .... there is just too much "fluff" there ... most of it is lost or never used ... and the bottom line results are never realized.

Take CAD/CAM for example ...

No one can deny that CAD/CAM is a great tool ... no doubt ... and most of the designs we use in the world every day would not be possible without at least the CAD portion of CAD/CAM. But one fact is clear to anyone living in a production world ... if a machine shop puts every job through the CAD/CAM system ... through the CAD/CAM programmer ... they are inevitably losing money. The simple part programming ... the programming actually done in 95% of shops in the real world every day ... does not require a CAD/CAM system ... nor a CAD/CAM programmer. Giving additional chip makers the capability to quickly and easily create G code programs for these simpler workpieces ... gives the shop a much higher level of efficiency ... faster finished part output ... and in the end a better bottom line. It's a simple fact. Of course not every workpiece can be accomplished with a simple programming tool ... those complex jobs will still require something equivalent to a CAD / CAM system ... but with other chip makers handling the simpler programming ... the "CAD/CAM guy" has more freedom and more time to devote to the complex programming tasks ... and the work flow and finished output is greatly enhanced.

Innovation is not always the most complex solution.

OR take MRP/ERP systems for example ...

Again ... no one can deny that these complex systems have their place ... and can positively effect a companies bottom line. The problems we encounter is that there a way too many "features" ... and as a result they are either missing the important "real world" features ... or these features are so under-developed the results they produce do more harm than good. It seems the developers are so concerned with the number of bells and whistles ... they never adequately develop the truly needed features. For example ... quite a few of the big $$$ MRP and ERP systems denigrate machining cycletime to a simple user input ... no auto-calculations ... just a field for a user input. WHAT ??  Anyone living in the real world knows that building a cost estimate based on an inaccurate time to machine the part is a recipe for lost profits. And anyone living on the shop floor knows that consistency and accuracy along with the ability to insure that cutting parameters used in cycletime estimates can be reproduced on THEIR shop floor .... is the key to machining profitability.

KipwareCYC® ( cycletime estimating ) and KipwareQTE® ( cost estimating ) are applications devoted to the tasks for which they were developed. Proven in-the-trenches for over 2 decades ... helping our clients around the world to not only win MORE work ... but win MORE PROFITABLE work. And after all isn't that the key ... winning work that is profitable ... not having the shop busy producing parts that are losing money.

Kipware® =  a more logical approach

Using real world tools like Kipware® conversational or Kipware® business software is the equivalent of turning down the flow of the firehouse ... more of that water can be captured and used for it's intended purposes.

CLICK HERE for more information on Kipware® software

Kenney Skonieczny - President

Kentech Inc.

New Release : Expanded Cutting Database for KipwareCYC® - Machining Cycletime Estimating Software

Kentech Inc. is pleased to announce the release of Version 6 of our KipwareCYC® - Machining Cycletime Estimating Software.

We completed a major overhaul and upgrade of KipwareCYC® in 2012-2013 that created a source code base and foundation designed and built for the future. Now we have the ability to concentrate on new features and innovation to build on that strong foundation.

We are pleased to be able to address some of our users requests beginning with the expansion of our Cutting Parameter Database module. Users now have DOUBLE the capacity to add user defined sub-categories and cutting parameters for each individual machining operation. 

For example : The number of sub-categories under Rough Milling for example has been expanded from (5) to (10) ... allowing for greater flexibility, speed and accuracy in the cycletime estimating module. This new expansion combined with the already UNLIMITED database capacity of the Cutting Parameter Database gives KipwareCYC® a new and more powerful layer of accuracy and flexibility. Each main machining operation now can have up to (10) sub categories. The (2) user defined machining operation also now have this expanded sub-category capability.

Previous versions allowed for (5) Sub-Categories under each Main Category.

This feature has been expanded to (10) in Version 6.

Version 6 is now shipping with this expanded database feature standard.

Version 5 users also have the ability to import their current ... older style databases ... into Version 6 with just a click of a single button ... making for a quick and easy UPGRADE.

For additional information on KipwareCYC® and all our machine shop software titles ... 

please visit our website at www.KentechInc.com

Kenney Skonieczny - President

Kentech Inc.

New Video - Machining Cycletime Estimating with KipwareCYC® from Kentech Inc.

No matter what you are using to produce your cost estimates and quotations ... if you are not realistically estimating your machining cycletime ... you are still GUESSTIMATING. Basing your labor charges on quesses or pie-in-the-sky cutting parameters that result in inaccurate machining cycletimes will still produce inaccurate cost estimates and lost profits.

Since 1986, over 25+ years, our proven-in-the-trenches cycletime estimating software ... KipwareCYC® ... has been providing accurate and fast machining cycletimes that insure that the KEY FACT to successful cycletime estimates is achieved. What is the KEY FACT to accurate cycletime estimates ... THAT THE MACHINING CONDITIONS AND PARAMETERS USED IN THE ESTIMATE CAN ACTUALLY BE REPRODUCED ON YOUR SHOP FLOOR.

Book knowledge ... theoretical speeds and speeds ... fancy speed and feed calculators ... don't do ANY GOOD if those parameters cannot be reproduced on YOU SHOP FLOOR. The numbers sound and look good ... are easy to obtain with those fancy calculators or speed and feed software ... but if they are not being used on your shop floor your estimated time vs. actual time will not be accurate and your cycletime estimates will not be accurate. The result ... longer actual cycletimes and lost profits.

Why and How is KipwareCYC® different?
Check out this past post that lays it all out in detail :
http://kentechinc.blogspot.com/2013/07/accurate-machining-cycletime-estimating.html

Click the image or link above to explore the How's and Why's of
ACCURATE CYCLETIME ESTIMATING

With a New Year upon us and all the possibilities that lay ahead ... are you ready to
STOP GUESSTIMATING and START ESTIMATING ??

We created a new training video that illustrates the process of creating a machining cycletime estimate using our KipwareCYC® application. Why not give it a look?

Click the image above to view this new KipwareCYC® Video Presentation

Click the image above to schedule a live, online demonstration of our KipwareCYC® software.

Click the image above to visit our website and view additional information on KipwareCYC®

Kenney Skonieczny - President

Kentech Inc.

Live OnLine Demonstrations - Join In !!

As our various Kipware® titles grow in popularity more and more every day ... potential customers have really been reaping the rewards of our online, live demonstration through our use of Cisco Webex. The conversations usually start out with the client requesting a "trial"version of a title ... and when we explain that we can also offer a live, online demo ... they jump at the chance. They really get excited at the opportunity to see the software in action while they sit in the comfort of their office or from home ... with multiple members of their team if desired .... and to have the ability to ask questions and get answers in real time.

To cut to the chase ... a live Webex meeting allows the client to sit in his office while we sit in ours ... the client can view our PC screen on his PC screen and see the software title in action. Through the audio conference they can ask questions and get answers in real time.

You will see this icon at the bottom of all our product pages ....
Just CLICK IT to set up a live, online demonstration.

Cisco Webex is an online meeting service that we can set up in as little as 15 minutes. Here are some of the features and advantages of Webex :

• Webex meetings are completely FREE for anyone who wishes to attend.
• Webex is a web-based service and works with any browser ... so you can attend a demonstration from any computer (Windows, Mac, Linux, or Solaris) -- as well as your iPhone, Blackberry, or any other WiFi or 3G-enabled mobile device. 
• Users receive a link to log on for the video portion and a toll-free number to call to join a conference call ... this is the audio portion of the presentation. Users can also use the microphone on their PC instead of calling the toll free number.
• Webex meetings can accommodate from 1 to 25 participants ...  so multiple people can attend from either the same location ... or each one can log in from a different location.
• Because of the large number of Webex meetings we provide ... our Webex meetings are available to both US and international clients,

Some clients assume that this service is only for "professional" groups ... but we very often host online meetings for single clients who log in from the comfort of their living rooms or home offices.

Trial Versions VS. Live Demonstrations
Most often, users miss important features of software ... no matter how easy-to-use they are touted ... when "playing" with a trial version. Not to mention the loss of time and productivity as you fumble through learning a new software package. This may be due simply to the learning curve or the fact that the customer assumes it will work one way and when it doesn't they assume the feature is not there ... when in fact it just worked a different way. Live demonstrations allow the user to have all their question and concerns answered in one session ... and to get on with their decision making process armed with all the information they need.

And it's not just for sales ... it's for training too !!
In addition ... Kentech Inc. oftentimes utilizes Webex meetings for software training. Again ... a Webex meeting allows users to see the software in action so we can fully demonstrate HOW to solve the clients question ... using both audio and video. Webex training sessions within the warranty period are offered at no charge to the client ... and are most often offered free even outside the warranty period.

How can we offer live, online demonstrations ?
Unlike other software "companies" ( are they really companies? ) ... the developers at Kentech Inc. are not creating software as a hobby. Kentech Inc. is a real company ... with a real telephone number ... with real developers ... who has been creating and developing Real World CNC and machine shop software for over 25+ years. And our commitment to our customers and to our customer support is unmatched in our industry.

So if you have an interest in ANY of the software titles we offer ... we encourage you to set up a Webex meeting at a date and time that is convenient for you. I am sure YOU WILL BE PLEASANTLY SURPRISED !!!

CLICK THIS link to visit our Schedule a Live Demo Webpage

Kenney Skonieczny - President
Kentech Inc.

Live Webinar on Machine Shop Estimating with Kipware®

We would love to invite you to join us for a live Webinar demonstration of quoting and estimating with KipwareCYC® machining cycletime estimating software and KipwareQTE® job costing and estimating software ... this Thursday 10/10/2013 at 1:30 pm ET. Our webinars usually last between 20 and 30 minutes with Q&A session to follow.

Also ... our Kipware® business software titles are featured in our Stupid Deal of the Week this week. So come and join us ... get the scoop on quoting and estimating with Kipware® ... get all your questions answered in real time ... and if it feels right, save some serious $$$ with a Stupid Deal of the Week purchase of an individual Kipware® title or all our business titles in our Kipware® Suite bundle.

You can Register Here : http://www.kentechinc.com/webinar_registration.html

The webinar capacity is limited to 25 ... so don't miss out ... register early.

Thanks to all in advance ... hope to see ya Thursday !!

Kenney Skonieczny - President
Kentech Inc.

New Release - New KipwareCYC® Cut Length Calculator Features

On the heels of the release of the CLC SketchPad for KipwareCYC® machining cycletime estimating software  ( http://kentechinc.blogspot.com/2013/09/new-release-clc-sketchpad-for.html ) ... we have added another new feature to the Cut Length Calculator as well.

Version 10.1.0 gives user the ability to SAVE and RECALL operations calculated using the CLC conversational / fill-in-the-blank forms. This new feature will allow for faster length of cut calculations as user will be able to save commonly used operations ( e.g. - Peck Drilling in 303 Stainless ) ... then  recall them ... make any subtle changes to the data ... and rec-calculate the length of cut without having to re-enter all the information onto the form.

We have also posted a new video to our YouTube channel ( KTSoftware ) that demonstrates the creation of a sample cycletime estimate using all the latest features within KipwareCYC®.

As always ... many thanks to our Kipware® users for your feedback and support.

Kenney Skonieczny - President
Kentech Inc.

New Release - CLC SketchPad for KipwareCYC® - Cycletime Estimating Software

We are pleased to announce another NEW release for Kipware® ... this one is for our KipwareCYC® - Machining CycleTime Estimating Software.

One of the inputs required when estimating machining cycletime ... is what is referred to as "length of cut". The distance the tool will travel while in the cut. Onviously, this is required along with the cutting feedrate to determine the time it takes the tool to remove the material.

KipwareCYC® has always included an application we call the Cut Length Calculator or CLC. CLC uses a variety of conversational, fill-in-the-blank forms for standard type operations ... pocket milling, drilling, turning, grooving, threading, etc. ... which allow the user to determine length of cut by simply describing the operation. Simple inputs like depth of cut, length and width, diameters, tool diameters, etc. are entered and CLC will auto-calculate the length of cut.

This has always worked well for standard type operations ... but non-standard type operations ... contouring, part profiling, etc. ... still contained a bit of guesstimating to determine the length of cut. It's a fine line between getting the information you require ... and overkill. But we think that we have created a great solution that is accurate ... fast ... and easy-to-use. The CLC SketchPad.

We have taken our proven-in-the-trenches SketchPad from our Kipware® conversational software ... with the patent-pending Machinist Mode ... and adapted it for use in determining length of cut. Basically ... users can import a DXF file ... select a graphical tool representation from the user defined Tool Library ... and then simply move the tool ( mouse ) around the part creating a toolpath they envision would be used for that machining operation. CLC SketchPad will record all the positions automatically and will then auto-calculate the length of cut. Results will be displayed ... and can then be copied to the clipboard and pasted into the KipwareCYC® form in the appropriate field.

You can view a complete presentation video on our YouTube Channel ( KTSoftware ) ... by clicking the link below.

If you are not a KipwareCYC® user ... does your estimating software provide you with a field for length of cut ... or with innovative and accurate tools to assist in it's calculation?

If you are a current KipwareCYC® user ... UPGRADING to the NEW CLC with the CLC SketchPad will add new accuracy and improve your cycletime estimating. Upgrade pricing can be found here ... in the Kentech Inc. OnLine Store.

Kenney Skonieczny - President
Kentech Inc.

Reason #1 - TOP 10 Reasons - WHY KIPWARE®? - CAD/CAM OVERKILL !!!

#1 In our Series of the TOP 10 Reasons ... WHY KIPWARE® is :
CAD/CAM OVERKILL !!

Well we have reached the pinnacle ... the top of the mountain ... the essence of Kipware® !! During our series we have outlined a lot of good and valid reasons WHY KIPWARE® saves you money ... and here we are at #1 ... a little thing we call CAD/CAM OVERKILL. 


The main point behind CAD/CAM Overkill is : If you use your CAD/CAM system for EVERY CNC program you create ... you are impacting your productivity and efficiency in a very negative way.

Not every CNC program requires a CAD/CAM system or operator ... and requiring one brings all kinds of inefficiencies and removes all kinds of good chipmakers from your programming process.For the most part we are talking about professional job shops ... not the hobby machinist who has time to "play" ... although even some of the good hobby guys realize that a simpler and more efficient way to create simpler G code programs is a great idea. For the professional job shop ... getting the part running and getting good parts out the door is the key factor for their bottom line ... and requiring every job move through the CAD/CAM "guy" is not the best choice for 95% of the work they produce and a day-to-day basis. Most shops are not programming for molds or aircraft parts which the CAD/CAM system was designed. Yes ... for that type of work the CAD/CAM system is a must ... but for the flanges, shafts, simple milling, drilling, simple turning, grooving, threading ... CAD/CAM is OVERKILL !!

Kipware® CONVERSATIONAL software is the cure for CAD/CAM OVERKILL

As we mentioned many times in our Blogs ... we lived and worked on the shop floor. We cut our teeth ... cutting chips. The software titles we have created were born from our wants and needs from our experiences on the shop floor and in cutting chips. Kipware® conversational is a tool for your programming arsenal that can quickly and easily create those simpler, everyday G code programs ... the programs required in 95% of job shops around the world every day. We have Blogged extensively on this subject ... and invite you to look back using any of the links below :

• R U Using the Wrong Tool for the Job
• O-Ver-Kill
• Cad/CAM Overkill - Realize It and Prosper

But the bottom line is ... and the reason we selected CAD/CAM OVERKILL as our #1 Reason - WHY KIPWARE®? ... is that producing and delivering parts is the lifeblood of every machine shop. Don't deliver ... Don't get paid ... Don't survive and prosper. Today's shops need an arsenal of programming tools ... not a one size fits all CAD/CAM philosophy ... to be efficient. Adding Kipware® conversational to your programming arsenal will insure another layer of productivity and efficiency to your shop floor.

Kenneth Skonieczny - President

Kentech Inc.

And don't be fooled by simple, underdeveloped G code "wizards" ... 

If you're gonna go ... GO PRO ... with Kipware® Conversational

Reason #2 - TOP 10 Reasons - WHY KIPWARE®? - Real World Cycletime Estimating

#2 In our Series of the TOP 10 Reasons ... WHY KIPWARE® is :
Real World Cycletime Estimating

No matter what you use or how you perform your cost estimating ... the basics of a good and profitable cost estimate begins with an accurate machining cycletime estimate. Looking at a part and saying "That should take us about 2 mins. to machine" ... is not cycletime estimating ... it's guesstimating ... and it WILL be FATAL !!

That's why we choose REAL WORLD CYCLETIME ESTIMATING as our #2 Reason Why Kipware® SAVES YOU MONEY!!

KipwareCYC® was born from the experiences of creating machine justifications while working as an Applications Engineer for a major Japanese machine tool builder. Companies came to us and wanted to know the age old question ... How long is it going to take to machine our parts on your machine? Based on the cycletime estimates I created ... they would either purchase the machine or walk away. If they purchased the machine ... life only got tougher. Now we had to make that cycletime stick ... in the real world. Just like shops do in the real world every day. KipwareCYC® was enhanced and further developed while working as a Manufacturing Engineer in a high production, large volume machine shop ... I had to insure that the machining time estimated was realistic and accurate. Those Real World experiences are built into KipwareCYC® ... and it has been more than proven-in-the-trenches over the years.

As we wind down our TOP 10 Reasons - Why Kipware®? ... we are really keying on our TOP software products that we have designed and developed ... based on over 25+ years in-the-trenches ... that produce the biggest cost advantages for our clients. All of our products have their niche ... and reasons why they are so effective in the Real World ... but KipwareCYC® stands out as one of the TOP.

Want to learn more ... we invite you to visit www.KentechInc.com or www.MachineShopSoftware.com and explore KipwareCYC® in more detail.

Better yet ... why not arrange for a personal online demonstration and let us show you how we can back up our claims ... click here to set one up.

Kenney Skonieczny - President
Kentech Inc.

Reason #5 - TOP 10 Reasons - WHY KIPWARE®? - Real World Estimating

#5 In our Series of the TOP 10 Reasons ... WHY KIPWARE® is :
Real World Estimating

Let's face the facts ... quoting and estimating is the LIFEBLOOD of your business. Period. End of story.

If the jobs don't come in ... or if they come in and your shop is losing money on them ... the shop is on the road to ruin. Sorry ... it's the fact.

Having lived and cut our teeth on the shop floor and in the real world ... we developed KipwareCYC® and KipwareQTE® to insure that shops using them not only win work ... but win profitable work. And since 1990 ... shops of all sizes have profited from our design, our development and our experience built into KipwareCYC® and KipwareQTE®.

KipwareCYC® was born from the experiences of creating machine justifications while working as an Applications Engineer for a major Japanese machine tool builder. Companies came to us and wanted to know the age old question ... How long is it going to take to machine our parts on your machine? Based on the cycletime estimates I created ... they would either purchase the machine or walk away. If they purchased the machine ... life only got tougher. Now we had to make that cycletime stick ... in the real world. Just like shops do in the real world every day. That experience is built into KipwareCYC® ... and it has been more than proven-in-the-trenches over the years.

As a Manufacturing Engineer in a high production, large volume machine shop ... I had to insure that the cost estimates I presented to our clients were realistic and accurate. An error of even a small amount of say $.25 ... over 10,000 parts ... meant a loss of $2,5000. No small chunk of change ...as I'm sure you know. That's why KipwareQTE® includes things that most cost estimating software don't even think of ... like perishable tooling as one example. Sure you need to drill 25 holes in each part ... is anyone including the cost of the drills when estimating? Real world features and experience like this are built into KipwareQTE®.

If your thinking about your quoting and estimating process ... and all the MRP and ERP talk has got you seeing $$$ signs and "features" you know you'll never use ... we invite you to give KipwareCYC® and KipwareQTE® a look. And as you look ... I'm gonna bet you will find yourself more than once saying, "Boy that makes sense."

That's KipwareCYC® and KipwareQTE® - Quoting and Estimating for the REAL WORLD.

Kenney Skonieczny - President
Kentech Inc.

Reason #7 - TOP 10 Reasons - WHY KIPWARE®? - Quotation Tracking

#7 In our Series of the TOP 10 Reasons ... WHY KIPWARE® is :
Quotation Tracking

The design and development of our KipwareTRK® - Quotation Tracking and Analyzing Software ... is sort of a microcosm of Kentech Inc.. The concept of tracking and analyzing your cost estimating and quoting ... the lifeblood of any job shop ... is an idea that everyone agrees is essential ... but one that hardly anyone really concentrates on. Quotation tracking and analyzing is usually a side note while the main concentration is just to get the quote out the door.

Lost in all the CAD/CAM hype ... lost in all the MRP and ERP hype ... is the concept that even the most expensive software applications with all their pretty pictures and big price tags ... does no good if you can't implement it or if it doesn't fit in your shop. The design and development of all our Kipware® applications are driven by our real world shop floor experiences. Kipware® is not the most expensive option ... doesn't have the prettiest of pictures ... but the real world design and features make them essential tools in any machine shop.

We recently posted here in our BLOG an in-depth article on the how's and why's of quotation tracking that brought out a lot of the reasons of why this is such an essential practice. You can read that blog post here : http://kentechinc.blogspot.com/2013/07/quotation-tracking-why-its-essential-to.html

Our Reason #7 of the TOP 10 Reasons - WHY KIPWARE®? ... ties the fact that quotation tracking is such an essential practice ... with the fact that KipwareTRK® is one of the only packages on the market to helps shops implement that practice !! The mere fact that we designed and built KipwareTRK® says tons about who we are ... what we do ... and WHY you should consider Kipware® for your shop. Our shop floor experiences ... the things we saw lacking in the REAL WORLD ... the things we saw that were overkill in the real world ... the things we saw that were a detriment to productivity in the REAL WORLD ... these are the things that have led to our Kipware® product line.

Kenney Skonieczny - President
Kentech Inc.

Reason #9 - TOP 10 Reasons WHY KIPWARE®? - Unmatched ROI

#9 In our Series of the TOP 10 Reasons ... WHY KIPWARE® is :
Unmatched Return on Investment ( ROI )

We have always taken pride in our software pricing structure ... RESPONSIBLE PRICING has been our motto.

Within the first 2-3 quotes ... you've paid for our business software by quoting jobs that will actually make money ... and getting the quotes out the door quickly and accurately.
The first or second time someone creates that simple CNC program quickly and easily using Kipware® conversational ... by-passing the time consuming and complex CAD/CAM system ... you've recouped your conversational software investment.
Take any of our software titles ... because they are priced responsibly ... you will easily recoup your investment quickly and our "no maintenance fee" policy will insure your ROI keeps coming job after job.

Here is Why !!
While the majority of software companies add "features" to their software ... which enables them to drive up their price ... our development strategy is based on the "real world". What some companies call "features" ... we call "fluff". Things that look nice ... sound nice ... add complexity to the software ... but in the reality of the real world, you pay for but will probably never use. Kipware® cuts through the "fluff" ... which also cuts through the complexity ... and insures that our software "features" are the things you're looking for in that product ... in the real world.

Another area where software companies gouge their customers ... yearly maintenance fees. If you are on a program that charges a yearly maintenance fee ... do you feel that the software enhancements meet the fee cost? The majority of people we talk with tell us NO !!! These software companies are simply adding more "fluff" ... to try and legitimize their maintenance fee. Our UPGRADE POLICY ... when we release a new feature, we send out an email. If you feel that it is something you like and want ... buy the UPGRADE which is usually in the $95 to $145 range. If you decide you don't want or need that feature ... when the next UPGRADE comes along ... or the next or the next ... and you like that feature and buy that UPGRADE ... you still get everything that has come down the road. Basically ... no maintenance fee ... you pick-and-choose when you want to UPGRADE.

We recently released our SUBSCRIPTION PURCHASE option. For a minimum yearly fee ... you get everything !! For $125 a year ... you can purchase our most popular titles and get ALL UPDATES and UPGRADES FREE for the life of the Subscription. For $225 a year ... you can get the same for our multiple title bundles. This takes the worry out of installations ... file back-up ... updates and upgrades ... for a fee that is more than responsible. This also give users the ability to really try-before-you-buy ... use the full title with full features for a whole year to see if it fits what you need. If so ... just continue without interruption or loss of data.

Whatever way you slice it ... our Kipware® software pricing policy of RESPONSIBLE PRICING will insure a fast ROI and will insure that ROI keeps coming long after the initial costs are repaid.

Kenney Skonieczny - President
Kentech Inc.

Top 10 Reasons WHY KIPWARE? - Reason #10 - Real World

#10 In our Series of the TOP 10 Reasons ... WHY KIPWARE® is :
Kipware® Is Created By The Real World

If you follow this blog ... you'll know my name is Kenney Skonieczny and I am the President and principal buck-stopper at Kentech Inc.. Along with being the go-to guy ... all software design and development goes through me or is done by me. In this blog post that begins my outline of the TOP 10 REASONS ... WHY KIPWARE®? ( the software products we developed ) ... I would like to present a little background of HOW Kipware came to be and WHY we feel the Kipware® titles are top machine shop software applications.

I believe that an understanding of the design and development background of our software will clearly demonstrate why we call Kipware® ... Real World Machine Shop Software.

My life in the machine shop and in machine shop software development started on the shop floor. Infancy was as a Class "A" machinist learning and expanding real chipmaking knowledge and experiences operating everything from standard lathes and Bridgeports to manual vertical and horizontal millers ... planers ... OD / ID grinders ... cylindrical grinders ... gear hobbers ... open side planers .... manual boring mills ... and so much more. In addition ... the lost art of way scraping was learnt and perfected along with machine design and repair. Along the way I combined that with some machine design and engineering training as well.

Next phase was as an Applications and Service Engineer for a major Japanese machine tool builder ... where the knowledge of CNC equipment ... both repair and operation ... was learnt and expanded. That knowledge came in the form of machine installation and repair ... turn key set-ups ... programming training ... applications ... and much more. Living and touching the latest and greatest CNC equipment gave me an unmatched knowledge of CNC equipment ... and gave me an unmatched opportunity to learn CNC and combine my real world chip making experience as a machinist with CNC.

Moving on in life included stints in CNC programming and shop floor management as well as a Manufacturing Engineer in a high volume, high production environment. These enhanced real world experiences also exposed the real world gaps in available software applications ... and sparked the ideas for solutions to address and fill those gaps.

Expensive MRP and ERP software and pretty-picture, 3D CAD/CAM applications certainly have their place ... but my shop floor experience also showed that complex and expensive applications are not always the correct solutions. the Kipware® titles were developed to directly address the real world problems I encountered every day on the real world shop floor.

An example ... sure CAD/CAM is a great tool .... but for the 95% of programming we did on the shop floor CAD/CAM was overkill ... and too complex. This complexity eliminated good chipmakers ... who could be good, simple job CNC programmers ... from the programming process. Having to go to the "CAD/CAM guy" led to tons of inefficiencies ... and bottlenecks. Kipware® conversational is designed to give those good chipmakers the tools to help them create those simpler, everyday CNC programs ... the program created on 95% of real world shop floors everyday ... without having to rely on the expensive and backed-up "CAD/CAM guy". Kipware® conversational is not a simple, underdeveloped "G code wizard" designed for "hobby" machinists ... although it still has a place in that environment ... but a full blown, professional, shop floor programming application that includes conversational programming, conversational CAD/CAM, toolpath plotting, professional G code editors and shop floor tools and formulas machinists are always looking for.

This little "rant" about Kipware® conversational is a microcosm of our development strategy. Real World tools to solve Real World issues.

So that is our Reason #10 for WHY KIPWARE®? .... because we saw the real world problems and developed the real world solutions.

We invite you to explore all our Real World software titles at www.KentechInc.com ... and follow along with this blog and explore the other TOP 10 REASONS ... WHY KIPWARE®?

Kenney Skonieczny - President
Kentech Inc.

Accurate Machining CycleTime Estimating - The Key

No matter what system you utilize to create your cost estimates and quotes ... everything starts with an accurate machining cycletime estimate. The phrase ... "Oh, that should take about two and a half minutes to machine." ... is doing more harm to your bottom line than you are probably even aware. This type of guesstimating ... especially when it comes to machining cycletime ... is throwing the whole cost estimating process that comes down the line into question.

If the machining cycletime estimate is not correct ... you could be winning work ... but unprofitable work. And that's just what your shop doesn't need ... wasting time manufacturing parts that are losing you money. Taking machine time and employee energy away profitable work.

So what is the KEY to accurate cycletime estimating?

Having lived and "grown up" on the shop floor ... we realize that the MAIN KEY to accurate cycletime estimating is to utilize the cutting conditions and parameters that can actually be reproduced on your shop floor ... with your equipment.

It doesn't do any good to estimate using an RPM or SFM and feedrate that your shop floor can never duplicate ... or utilize a method of machining that your shop floor would never follow or duplicate.

Sure cycletime estimating software that has feature recognition and auto-determines the method of machining will get you a time quickly and get that estimate done quickly ... but what good is it if your shop floor would never machine the part using the method the software determined?

Cycletime estimating software that boasts thousands of materials and speeds and feeds is expensive and seems powerful and complete ... but if your shop floor can't duplicate that "book knowledge" speeds and feeds ... what good is it?

So Kentech's KipwareCYC® software is different? How?

It certainly is ... and I'm glad you asked.

First : 
KipwareCYC® is a database driven application ... utilizing a user-defined database for machine specifications ( max RPM, rapid rates, tool change time, etc. ) and user-defined cutting parameters ( speeds, feeds for various materials and machining operations ). This insures that the calculated times accurately reflect what happens on your shop floor ... the key to accurate cycleltime estimating. You create the database and input YOUR specifications and cutting parameters.

Second : 
Using the various outputs and travelers available from KipwareCYC® ... the more you use the software, the more accurate it becomes. For example : the Routing Sheet that is automatically created from KipwareCYC® provides the operator / set-up personnel with a complete list of cutting parameters and times for each operation as the part moves through the shop. This means he has a targeted RPM, feedrate and time for each operation. If any of those factors cannot be achieved ... a report back to the estimate creator will result in an adjustment to the database information ... perhaps a revision to the SFM or feedrate or chip load used for a specific machining operation. Next time ... the RPM and feedrate will be more accurate. So the more you use the software ... the more accurate it becomes.

Ugh ... Entering ALL that database information !!!
Actually ... a couple of points that may have crossed your mind. First ... we do ship KipwareCYC® with installed database information for common machines, materials and cutting parameters. But again ... this is just to get you started ... you really need to make the database information your own. Here is what we recommend.

Let's say today you receive an RFQ for a 316 stainless part that requires some turning. You gather the machine specs for the lathe you're going to use and grab the normal cutting parameters the shop uses for 316 stainless. One additional point here ... most shops use a common insert that works well for them for specific machining operations ... there really isn't a need for a dramatic, all encompassing speeds and feeds database with info you'll probably never use ... let's keep it simple and keep it real. So you enter that data and now ... 316 stainless is done !! Next time you get an RFQ the info is all there and ready to go. With this system ... you are building the database as you are preparing quotes and winning work !!! It's a win -win ... with long term benefits.

So ... the moral of the story is?
No matter how you are arriving at your machining cycletime estimate ... the one certainty is to insure that it is utilizing the cutting conditions and parameters that can actually be reproduced on your shop floor ... with your equipment.

If you are looking for a software application what will insure that key ... we invite you to check out our KipwareCYC - Machining CycleTime Estimating software HERE.

Kenney Skonieczny - President

Kentech Inc.

Quotation Tracking -- Why It's Essential to Your Business

Regardless of how or what you use to produce your quotations ... once they are delivered ... what next?

As essential as producing an accurate cost estimate and delivering it in a timely manner ... the "what next" is just as or perhaps even more essential to your business's bottom line. Having a tool that can help you understand ... really understand ... your quoting and estimating process can mean the difference between winning work and winning profitable work ... or simply spinning your wheels, losing money without even realizing it or just plain ole losing out to the competition.

And we are not just talking about following up on your quotes with your customer ... we're talking about really getting under the hood and inspecting your quoting and estimating process in detail.

Having lived and grown up on the shop floor ... Kentech Inc. has created a variety of real world machine shop software applications to address the needs we actually experienced during those years "in the trenches". Their designs are easy-to-learn and easy-to-use because they are stripped of all the clutter and useless functions no one ever uses. Their purpose is not to be the most expensive or to have the prettiest pictures ... their purpose is to enable and empower our users to solve the real world issues their shop faces every day.

Our KipwareTRK® - Quotation Tracking and Analyzing Software fits that mold exactly. KipwareTRK® is a powerful tool that will allow you to really get under the hood of your quoting and estimating process to get answers to questions like :

• Which quotes need to be followed up on?
• Which follow-up method works the best?
• Why are we winning work? ... Why are we losing work?
• Why are we winning more aluminum work and less stainless work?
• Why are we losing milling work but winning turning work?
• What industry is most of our work coming from?
• What quantity range do we most commonly win ... or lose?
• In what price range are we most effective?
• ... virtually just about any question you have can be answered with KipwareTRK®

Because KipwareTRK® is user defined ... it's capabilities are virtually limitless. What do we mean by "user defined"?

In KipwareTRK®, the user has the capabilities to completely set-up the software and it's criteria's. First ... the user can define up to (16) main criteria categories. Some examples might be :

• Industry
• Quantity Awarded
• Result
• Follow-Up Status
• Material
• Reason for Acceptance
• Type of Machining
• ... or anything else the user decides.

Next ... the user has the ability to define an unlimited number of sub-categories under each one of the (16) main criteria. Some examples might be :

• Under Industry : Aerospace, Prototype, Energy, etc., etc.
• Under Quantity : 1-50, 51-100, 101-150,  etc., etc.
• Under Result : Quote Awarded, Quote Delivered Late, Quote Too High,  etc., etc.
• Under Follow-Up Status : Email Required, Phone Call Required,  etc., etc.
• Under Type of Machining : Mill-Turn, Grinding, Milling, Turning, Waterjet, etc., etc.
• Under material : Steel, Tool Steel, Aluminum, etc., etc.

Because each one of the (16) main categories can have an unlimited number of sub-categories ... the power and detail available in KipwareTRK® is expanded exponentially.

But what happens with all that data?

Combine all that information with powerful sort ... filter ... and graphing tools ... and KipwateTRK® allows you to view and analyze your quoting and estimating process in ways never before imaginable. KipwareTRK® really allows you to get under the hood ... inspect the details ... and adjust your approach to quoting and estimating to insure that process extends beyond just delivering the quotation.

Make sense?

We invite you to explore KipwareTRK® in greater detail ... watch the video presentation ... or arrange for a live, online demo at the KipwareTRK® page of your website here : http://www.machineshopsoftware.com/KipwareTRK.html.

Did we mention that KipwareTRK® can also be used to track product through the shop? ... well that's a story for another post ... or can you visualize the possibilities?

Kenney Skonieczny - President
Kentech Inc.

Real World Machining Cycletime Estimating & Why It Matters

The phrase ... the guess ... "That should take us about 2 minutes to machine." ... is costing you  money ... plain and simple.

I would say that most of our clients who request a Webex demonstration of our KipwareCYC® software answer the question "So how do you estimate your cycletime currently?" in a similar fashion. Inevitably most pass it on to the machinist on the floor or the production manager or the manufacturing engineer ... and they provide the machining time estimate. And when we push a little harder ... it turns out that most usually use the scientific form of GUESSTIMATING to arrive at their times based on their 30+ years or so of machining.

The fact of the matter is that even with all that machining background ... their cycletime estimate is still a guesstimate ... and cost estimates produced from that will be incorrect. No matter what you are using for cost estimating ... if the cycletime estimate is incorrect it could lead to winning work ... but work that just loses money.

The other side of the coin is the "feature recognition" software that claim they can produce a cycletime estimate based on a solid model. So now we go from a free guess to a very high priced software application ... but the result is probably the same ... inaccurate times. Why? That high priced app probably can figure a machining cycletime estimate based on that 3D model ... but the key is will the machining process it determines be the same process that will take place on your shop floor? Will the speeds and feeds it calculates be the same speeds and feeds that will be produced on your shop floor? Probably not ... and that means the time it calculated is no better than a guesstimate.

The key to accurate cycletime estimating is simple ... make certain that the machine specs, cutting process and parameters used accurately reflect what will happen on your shop floor. Period.

Our KipwareCYC® is real world cycletime estimating software that was developed in the real world over years of providing time estimates for machine justification and time estimates for high volume production. KipwareCYC® will provide you with consistency ... and most important accuracy ... in your cycletime estimating process. The real world design and features of KipwareCYC® will insure that machine specs and cutting parameters utilized in the estimate will accurately reflect what happens on your shop floor. In fact ... the design insures that the more you use KipwareCYC® ... the more accurate it becomes !!!

Want to learn more ... we invite you to visit www.KentechInc.com or www.MachineShopSoftware.com and explore KipwareCYC® in more detail.

Better yet ... why not arrange for a personal online demonstration and let us show you how we can back up our claims ... click here to set one up.

Kenney Skonieczny - President
Kentech Inc.

"That should take us about 2 minutes ... "

"That should take us about 2 minutes to machine." ... Is that how your machining cycletime estimating process goes? If so ... you are losing money ... plain and simple.

I would say that most of our clients who request a Webex demonstration of our KipwareCYC® software answer the question "So how do you estimate your cycletime currently?" in a similar fashion. Inevitably most pass it on to the machinist on the floor or the production manager or the manufacturing engineer ... and they provide the machining time estimate. And when we push a little harder ... it turns out that most usually use the scientific form of GUESSTIMATING to arrive at their times based on their 30+ years or so of machining.

The fact of the matter is that even with all that machining background ... their cycletime estimate is still a guesstimate ... and cost estimates produced from that will be incorrect. No matter what you are using for cost estimating ... if the cycletime estimate is incorrect it could lead to winning work ... but work that just loses money.

The other side of the coin is the "feature recognition" software that claim they can produce a cycletime estimate based on a solid model. So now we go from a free guess to a very high priced software application ... but the result is probably the same ... inaccurate times. Why? That high priced app probably can figure a machining cycletime estimate based on that 3D model ... but the key is will the machining process it determines be the same process that will take place on your shop floor? Will the speeds and feeds it calculates be the same speeds and feeds that will be produced on your shop floor? Probably not ... and that means the time it calculated is no better than a guesstimate.

The key to accurate cycletime estimating is simple ... make certain that the machine specs, cutting process and parameters used accurately reflect what will happen on your shop floor. Period.

KipwareCYC® is real world cycletime estimating software that was developed in the real world over years of providing time estimates for machine justification and time estimates for high volume production. KipwareCYC® will provide you with consistency ... and most important accuracy ... in your cycletime estimating process. The real world design and features of KipwareCYC® will insure that machine specs and cutting parameters utilized in the estimate will accurately reflect what happens on your shop floor. In fact ... the design insures that the more you use KipwareCYC® ... the more accurate it becomes !!!

Want to learn more ... we invite you to visit www.KentechInc.com or www.MachineShopSoftware.com and explore KipwareCYC® in more detail.

Better yet ... why not arrange for a personal online demonstration and let us show you how we can back up our claims ... click here to set one up.

Kenney Skonieczny - President
Kentech Inc.