One of our customers’ most common questions is why producing one or two parts might cost nearly as much as producing quantities of 10 or 20. The answer lies in the behind-the-scenes work it takes to get a job up and running, regardless of volume. Ultimately, by the time we’ve completed the second part, Ricaurte Precision has nailed manufacturing process optimization, so per-piece prices of higher quantities become lower than those of smaller orders.
We’re here to shed light on why low-quantity orders are priced the way they are—and how continued partnerships lead to lower costs over time.
The Complexity of Low-Volume Jobs
On the surface, producing a single part might seem like a simple task. But the reality is, contract manufacturers like RPI must go through the same foundational steps whether we’re making one part or one thousand. This includes:
- Material sourcing and purchasing
- Programming and creating tool lists
- Setting up fixtures and machines
- Running quality and contract reviews
- Generating work instructions and inspection plans
- First Article Inspections for each Operation in the manufacturing process
- Coordinating any required outside processing or finish requirements
Each of these tasks takes time, resources, and skilled labor. That means the cost of planning and setup is spread over just one or two parts, making the per-piece price significantly higher.
More Setups = More Work
Another reason low-quantity orders cost more? They typically don’t run on our most automated equipment. While loading a part onto one of our most sophisticated live-tooling lathes or multi-axis pallet systems is incredibly efficient, it also requires more prep, validation, and custom tooling. For a smaller quantity of parts, it’s typically more practical to run them across a handful of machines, which means multiple setups, multiple first articles, and more chances for variation.
On larger jobs, we have time to dial things up. A part that may take 8-10 minutes on the first run can be optimized to 3 minutes after five or six iterations. But in a two-piece order, we don’t have that opportunity to optimize; in that case, the second run is the final run.
Why Communication and Planning Matter
A significant factor in manufacturing process optimization is communication—both with the customer and internally across our team.
If, for example, we don’t get all the details we need up front, we may need to make updates on the fly. This could mean reprogramming machines, adjusting fixtures, recommunicating expectations, and more—all of which slow down production and incur additional costs.
Even in a well-planned job, things can shift; it’s just the nature of our industry. Maybe a part needs to be moved from a 3-axis machine to a 5-axis machining center for a better finish. Or perhaps the tooling needs to be swapped or adjusted. That’s why an open line of communication is vital: the more information and clarity we have from the beginning, the smoother—and more cost-effective—the job becomes.
Where Manufacturing Process Optimization Pays Off
Cost Savings on Repeat Orders
At RPI, continuous improvement is built into our processes. While your first run might seem expensive, the second and third runs are much more efficient and cost-effective because we’ve already:
- Completed the programming
- Built the tooling lists
- Verified the setup
- Documented the inspection process
- Stored material and supplier preferences
Once the first run is successful, we’re not starting from scratch on future runs—we’re optimizing. And that translates to better lead times, higher quality, and lower costs.
Buying Power and Volume Discounts
Material costs, custom tooling, and outside services like plating or heat treating all scale with volume. When RPI buys 1,000 pounds of aluminum, for instance, we will always get a better rate than when we’re only buying 10 pounds. Think of it like buying in bulk; items will almost always be cheaper when purchased in larger quantities than in single quantities.
This principle also applies to things like custom tooling. If we need to order a custom tool for an order of 200 parts, this cost wouldn’t increase the per-piece price significantly. However, if we needed to buy custom tooling for an order of two parts, that’s where the per-piece price would increase noticeably.
That’s not to say that we shouldn’t order custom tooling on a two-part order or that we shouldn’t order 10 pounds of aluminum when that’s all that’s needed. We simply want to inform customers why these upfront costs become economical when spread over higher volumes and why per-piece costs on low-volume jobs are typically more than on higher-volume orders.
The Long-Term Value of Partnering with RPI
As a trusted precision machine shop, we’ve designed our systems with scalability in mind. We’re constantly investing in cutting-edge tooling, lights-out machining, and advanced equipment that allows us to grow alongside our customers.
More importantly, we’re committed to building relationships—not just running jobs. If you continue partnering with us, your parts will only get more cost-effective, consistent, and optimized.
Looking for a reliable precision machining partner? Let’s talk about how RPI can support your next project with true manufacturing process optimization.
