Production jobs

Btimes3Btimes3 Posts: 143Member ✭✭✭
Ok so I was in wal mart today and I noticed some mossy oak brand can openers with dipped handles. I don't know about you but for some reason every time I see something dipped I can't help but inspect it lol. Anyways every single pair I looked at  had very noticeable touch ups camo missing where air bubbles were and other issues. Anyways these were going for only like 5 dollars a pair. So my questions are is one how in the heck does a hydrographic company make money off a job like that  seeing they were only five dollars they prob were not making a ton off each pair and I'm sure they had to do a crap ton to make a descent profit. Second question is at lower dollar production items like that does quality go out the window as long as there is something that somewhat looks like camo on the handle. I have never done a production run and these questions are out of pure curiosity 

Comments

  • LibertymanLibertyman Posts: 953Member, Business Ninja ✭✭✭✭
    Jigs, with lots of them being dipped at one time, it's the only way they can be dipped to make any kinda money at it. Could possibly be dipped over seas too, seeing as its from Wally World. Probably China where they make a wage of 10 bucks a week...
  • K2ConceptsK2Concepts Posts: 13,340Administrator El Jefe
    I go over this in the production lesson in our training...it's fairly enlightening...
  • MidOhioHydrographicsMidOhioHydrographics Posts: 9,404Member, Moderator, Business Ninja El Moderator
    edited December 2016
    I'm what I'd call a medium sized production shop. With our dip arm, we can dip 8 fixtures of 16 pistol grips (128 total) at a time, and can do that every 3 minutes. Calculate that over a 10 hour day, 5 days a week. We don't have a market for that many grips, but it's just an example of small parts. . Imagine if I had 3-4 or more tanks like the really big guys.
  • NotSoFastNotSoFast Posts: 3,254Member, Moderator El Moderator

    I'm what I'd call a medium sized production shop. With our dip arm, we can dip 8 fixtures of 16 pistol grips (128 total) at a time, and can do that every 3 minutes. Calculate that over a 10 hour day, 5 days a week. We don't have a market for that many grips, but it's just an example of small parts. . Imagine if I had 3-4 or more tanks like the really big guys.

    And just going by the "$20 every time you touch the water" Jim suggested in training, that's less than $0.32 per PAIR. $20 every 3 minutes, all day long, every week of the year is a LOT of money. All at about $0.16 per individual part. The mass-dipped items like the cheap stuff you find in Walmart are done in bulk and don't even receive the touch-ups and other care that Joe and his guys do on the gun parts, so it's even more profitable for these Chinese-made products.
  • Btimes3Btimes3 Posts: 143Member ✭✭✭
    Thanks for all the input, like I said have never been a part of a big production run so It had my curiosity
  • NotSoFastNotSoFast Posts: 3,254Member, Moderator El Moderator
    Btimes3 said:

    Thanks for all the input, like I said have never been a part of a big production run so It had my curiosity

    It's one of many things Jim covers in his training classes. One of many things that makes it more valuable than your run of the mill dip training classes. Plus, you pay for one of @K2Concepts training once and you get free refresher courses for life!
  • JeremyJeremy Posts: 1,107Member ✭✭✭

    It's one of many things Jim covers in his training classes. One of many things that makes it more valuable than your run of the mill dip training classes. Plus, you pay for one of @K2Concepts training once and you get free refresher courses for life!

    Jim @K2Concepts should make a shirt for trainees "K2 Lifer" LOL
  • wynnesccwynnescc Posts: 8Member
    to answer your question about the minor imperfections... it depends on what company you are doing the work for... some companies want to pay you a low amount and it can be 85% and some want to pay you middle road and expect 100% some companies want quality and quanity in a short time frame... production is def a stressful environment

  • BluewaterBluewater Posts: 44Member
    I understand the $20 per 3 minutes of dipping but that does not factor in
    Set up
    Primer / Paint if needed painted
    Touch Ups
    Clear Coating
    All which still needs to be done to the same parts. So $20 per every 3 minutes is not exactly accurate. Yes I know the same 3 minute window if you have extra employees prepping, painting, and clear coating the same other parts. But then you have to divide up the $20, and I know this is just a simple example of production work thinking. I wish I could do some production work myself. Too many single customers for now.

  • K2ConceptsK2Concepts Posts: 13,340Administrator El Jefe
    Bluewater said:

    I understand the $20 per 3 minutes of dipping but that does not factor in
    Set up
    Primer / Paint if needed painted
    Touch Ups
    Clear Coating
    All which still needs to be done to the same parts. So $20 per every 3 minutes is not exactly accurate. Yes I know the same 3 minute window if you have extra employees prepping, painting, and clear coating the same other parts. But then you have to divide up the $20, and I know this is just a simple example of production work thinking. I wish I could do some production work myself. Too many single customers for now.

    This is where you are wrong actually, it DOES factor in all the above...and MORE...because if you take the time to calculate $20 every 3 minutes...8 hours a day...5 days a week...52 weeks in a year? It comes out to $832,000 a year...trust me if you start doing THAT kind of volume? You would be able to afford a chauffeur to drive you to work on TOP of all the salaries of your employees...

    So you don't divide up anything...you are either billing out $20 every 3 minutes or you aren't...at $400 an hour? I think that business plan factors in plenty of help, materials and overhead...

    Try doing $832,000 worth of custom work a year with "single customers"..."Rot's O Ruck"...
  • MidOhioHydrographicsMidOhioHydrographics Posts: 9,404Member, Moderator, Business Ninja El Moderator
    I was hoping you'd elaborate! Well said, Jim.
  • BluewaterBluewater Posts: 44Member
    yes guys your correct. I was just saying it's not all profit that $20 in 3 minutes. It is gross income as that part moves through the shop going through all its processes. I thought it was mentioned "profit" every 3 min. You guys did not say it that way or imply. My apologies
  • MidOhioHydrographicsMidOhioHydrographics Posts: 9,404Member, Moderator, Business Ninja El Moderator
    edited January 2017
    @Bluewater you are right. Definitely not all profit. We also never said it was profit. You just understood it one way.

    And remember this is generalized. I did some runs of very small parts for a customer where I could dip 720 in one dip. Fixturing time took a while, prep time took a while, and there's no way I was charging only $0.03 each for them. I'd have to look back at my quote calculations, but I'm pretty sure we had more $ in them than that.

    Once you run some production (or at least a lot of parts), it gets easier to quote. I can more accurately estimate coating volumes, Time/man hours, packaging, etc per part and know fairly accurately how much money you have in each part. Then calculate your gross profit margin percentage and discount for volume orders. Always do test pieces for the company. On your first job measure the coatings and time accurately. Also helps to know all your utilities, labor, etc. and figure up an hourly shop rate.
    Post edited by MidOhioHydrographics on
  • K2ConceptsK2Concepts Posts: 13,340Administrator El Jefe
    Yes that is just gross sales projected...and it's simply a mathematical illustration to get the guys to start thinking in a different way than they had when they walked in the door...I want to shake the dust off your brain and get the mental process going...I know not everyone is capable nor do some even want to get into a production level type of business plan...I just want to knock your existing business plan around a little and help you see the bigger picture...

    It's not always about the low hanging fruit...
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