A: Not necessarily. Price-per-Gallon, which typically refers to the retail price of a product, does not necessarily reflect the cost of a product when in production. Many products are sold in a concentrate that requires diluting with water before use. Price-at-the-Machine is a more accurate measurement of the cost of a product in use than the Price-per-Gallon purchase price.
For example, one gallon of concentrate that sells for $20.00/gallon but is diluted 8:1 (8 parts water to 1 part concentrate) has a Price-at-the-Machine of $2.23 ($20.00 divided by 9 parts). One gallon of a product that sells for $10.00/gallon but is diluted 2:1 (2 parts water to 1 part product) has a Price-at-the-Machine of $3.34 ($10.00 divided by 3 parts).
A: The true cost of a product takes into consideration the impact of that product on other aspects of production. Poorly performing products can add costs, such as: shortened die coating life, shortened tool life, production down time for maintenance and repair, personnel costs, shorter sump life, defective parts, high scrap rate, etc.
A: Increasing the profitability is directly related to improving efficiencies. If any area of the production process can be made more efficient, it will positively impact calculated profitability of a part. Typically, manufacturers calculate 10-12% of the “piece price” for tooling, maintenance and repair costs. That percentage can be reduced by improved efficiencies (such as, lengthening die coating and tool life, less frequent re-coating and polishing, decreased down time, lower scrap rate, etc.) in the production process.
A: Not necessarily. It is important to note that each coolant has its own unique concentration readings. One coolant may have a refractometer reading of 9.2°Bx at 10% concentration (10:1) while another coolant may read 3.3°Bx at the same concentration. Water-soluble oils typically have the highest refractometer scales and synthetic coolants typically have the lowest. Make sure to check with your coolant manufacturer for the correct scale for your coolant.
A: Nanotechnology is technology that deals with dimensions and tolerances of less than 100 nanometers, especially the manipulation of individual atoms and molecules. A lubricant that is developed to activate at the molecular level is able to have more complete coverage and remain engaged between the tool and material where others may be squeegeed out. Nanotechnology significantly decreases heat and provides a thorough wetting of the metal for full coverage and interface to the tool and part surface. Due to the low (thin) viscosity of nanotechnology formulas, manufacturers are able to hold tighter tolerances without any hydraulic push back. This helps preserve proper part thickness and enables greater forming accuracy, while reducing splits.