Comparing In-House Drilling vs Outsourcing: Cost Analysis
The Breakeven Volume Rule I advise shops to buy a machine when the annual volume exceeds about 500 parts. Below that, outsourcing is cheaper. Above it, the machine investment pays off within 2-3 years. The 500-part rule is a starting point. The actual breakeven shifts with part size, material, tolerance, and the shop’s existing capabilities. I have seen shops that broke even at 200 parts because they already had a suitable machine and only needed the drilling attachment. I have also seen shops that needed 1000 parts to justify the investment because they needed a complete machine and coolant system. ...