Pricing a very large order

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Joe Jones
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Re: Pricing a very large order

Post by Joe Jones »

cutnweld wrote: Mon Jul 18, 2022 3:58 pm Dont take on jobs for the cheap guys, they will never be done complaining
Don't you love it? you shop around for the absolute BEST deal on a set of tires. you buy the tires, and then you tell THAT GUY what you paid for them...

"Aw, man! you got RIPPED OFF! I can get those same tires for $30.00 LESS each!"

So you reach into your pocket.

"Great! Wow! I have an identical truck at home that also needs tires. Here is the money! Go get me a set TODAY at YOUR PRICE!!

Then you get ...

"Aw, well ... my cousin get me the deals, but he isn't available right now ...

as you pull out the BIG SHOVEL! :lol:

Joe



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Re: Pricing a very large order

Post by jackgreen91 »

Hi all,

I appreciate all of the feedback and responses, very well described and some points I hadn't considered. While I'd love an ironworker we don't have space for one, damn.

I don't know all of the details as yet, it does beg the question if it is such a big order why they don't opt to buy the machine themselves or seek alternative methods such as the shear and punch or laser.

Basically, I need to get a fully formulated contract which covers me for potential losses, tolerances and a get out clause, right? There is a colossal amount of material and work for a one man band so you are correct in suggesting the labour of loading, packing and shipping the lot needs to be considered. I have asked a couple of firms what they would quote it at and the two I got an actual number response from were £32/unit and £29/unit excluding the material but to me that sounds excessive. It would have to consider contingency for wasted material and break downs somehow. I had thought about offering to do the job in quarterly payments/deliveries, suggesting that if either party were unhappy with the outcome, either speed/quality on customer or financial on my part, that either party could back out. Not sure if companies would be willing to operate this way, one to find out. I would sooner price high and lose the job than take it on at a potential loss and have to remortgage the house...

I will update you all on when I know further, I'm unsure if there are reasons for why they want plasma over any other process but I guess I'll find out. Maybe I charge 32 a unit and build a shed then put the iron worker in there..

All the best,
jack
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Re: Pricing a very large order

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Joe Jones wrote: Mon Jul 18, 2022 1:06 am
SegoMan DeSigns wrote: Sun Jul 17, 2022 4:32 pm Or you could just put it on your table and cut it at 45" / min with 85amps (aprox 2 -3 min per piece), there was no mention of radius on the corners so until further info is provided we are reverse engineering an unknown project to yield a big ?..
Assuming efficient removal of cut pieces, 3 minutes per piece by your estimate is still 50 HOURS of cutting. Add to that, the change of material plates, since you cannot get all 1,000 pieces out of one sheet. Then removal of the skeletons....

Even at your estimates cut speeds, it is a 100 hour job. At $150/hr. shop labor rate, that is a $15,000.00 job for LABOR, and you will run both your compressor and your plasma machine into the ground. Add in the cost of the consumables you WILL burn through on a job this large ... :roll:

Really, the only way to make this work is to have a metal yard shear the squares, and then you punch the 22 mm holes with your new ironworker! :HaHa

Joe



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Joe,

Have you thought of the labor to align that plate 4 times to be punched? You are going to do more manual labor and hump more iron. but that is your choice.

Why is it you own so many plasma tables yet no iron workers if they are as good as you say?
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Re: Pricing a very large order

Post by adbuch »

That's a good question.
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Re: Pricing a very large order

Post by Joe Jones »

SegoMan DeSigns wrote: Mon Jul 18, 2022 4:42 pm
Joe,

Have you thought of the labor to align that plate 4 times to be punched? You are going to do more manual labor and hump more iron. but that is your choice.
With a helper next to you, handing the plates to you off of one pallet, and then stacking them onto another pallet, it is an easy task, about one minute per plate. If it meant ending up doing the labor for FREE, but gaining a new ironworker for my shop, it would be a no-brainer! I'd go for it!
Why is it you own so many plasma tables yet no iron workers if they are as good as you say?
A simple V-Jig can be placed on the iron worker. you grab the plate, slide one corner into the jig on the punch table and step on the pedal. The hole is punched in the correct place. The ram punches the hole and retracts the punch. Rotate the plate 90 degrees and repeat the process four more times. Have you ever USED a hydraulic ironworker? It will quickly become your favorite shop tool. :Yay

I had a nice SCOTCHMAN 5014-ET ironworker all lined up to be delivered to my house from a FabTech show in Chicago in 2019, but then I got the hankering to buy the KERN Opti-Plex laser table. So I cancelled the ironworker and then ... life got in the way, and the $240,000.00 CASH I had from selling the store on the Square in 2018 was quickly divided into several segments. MOST of the money went to good causes, but I made some bad investments too, and lost about $50K. :Sad

I could order one TODAY, and have it at my home by Friday, but I have been watching the world events, and quite frankly, I am not certain that our country will even exist much after November of this year. Any discussion on that topic beyond that, would drag us straight into poly-ticks! :Wow

So I do not want to go into debt for anything else right now. Even if the stock market CRASHES, and everything drops to ten cents on the dollar, I will still have enough to pay off my debt (the truck loan, the Goldwing loan, etc.) at any time when the world implodes. I have the Deeds to my home and the adjoining property with my shops. But I do not want to over extend myself. I like to stay at the point where I can be completely out of debt at any given moment with a single phone call.

SCOTCHMAN does great financing on ironworkers. My credit score is hovering in the mid-700's. Believe me, it is TEMPTING! But right now, I do not want to take on another $20.000.00 loan. If the U.S. Dollar evaporates overnight and they switch to a digital currency, all Hell will break loose. I am fairly well protected, but I DO NOT want someone showing up at my door saying, "Pay off the loan NOW, or we take the machine!"

Priorities change with the times. Right now, with The First Annual Great American PURGE on the horizon, I am thinking that one of THESE might be the next thing I will need to buy.

Joe
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Re: Pricing a very large order

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Helper next to you?? Not that long ago you said you could find none.. A one man shop has to be creative, practical and efficient. That along with proper quality control sets apart from the big boys.

"Have you ever USED a hydraulic ironworker?" Nah I just build shit to put in a museum and stare at it :HaHa :HaHa I Don't want to wear out anything while making a profit with it. :roll: :roll:

I do like your ball mount hoe and punch idea though replace the teeth with a punch and do 3 holes at a time.. Mount some forks on the back side and save your back while your at it..
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Re: Pricing a very large order

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SegoMan DeSigns wrote: Mon Jul 18, 2022 8:42 pm Helper next to you?? Not that long ago you said you could find none.
MY shop is not the one producing the 1,000 plates.

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Re: Pricing a very large order

Post by adbuch »

Since Jack (the OP) has a cnc plasma table, and not a laser or water jet, then cutting these with his cnc plasma should be fine. It's just a question of coming up with a proper quote so he can make a good hourly wage for the job. I wouldn't worry about wearing out the plasma table or consumables. These things should all be factored in when doing the quote.
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Re: Pricing a very large order

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I agree, but why spend 200 hours making these things, when you can make them in far less time, and add a nice new ironworker to your shop in the process? An opportunity like this does not knock on your door every day.

Have I ever told you about the time I was hired to move four motorcycles to New York City? :mrgreen:

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Re: Pricing a very large order

Post by SegoMan DeSigns »

How are you getting the 31.25 sheets of material weighing in at 20,000 lbs to / from the yard for the initial shearing??
Are you actually going to tell the customer to drop it off at your competition?
Will they sheer outside stock? if they have a shear I'm sure they have press punches too (bumper pull, tractor driven turret or otherwise) how much are they charging to sheer? I see an hr / sheet to load sheer and stack so that is $75 / sheet x 32 = $2,400

I just loaded 105 amp consumables and bumped the cut speed to 62" Ipm quality / 76" ipm production.
Need I remind you of a thread where I harvested a full sheet of 3/4" with $10 in consumables?
I can see a consumable budget in the $300+ range for this project. with a second torch your harvesting the skeleton behind the gantry.
The Hyperthem at 105amps has a duty cycle up to 80%, the time it takes to strip the stock and reload the Hyperthem has cooled and is saying bring it on man. I see aprox 1 hr / sheet to load cut and strip that is 32 hrs give or take, add to that doss removal / stacking and banding.
My 20 Hp compressor has a continuous run mode that keeps the heads cool by holding the intake valves open when at full operating pressure.
My Clearpath servo's tossed around the 400 lb gantry at speeds of 500 / 750 / 1000 ipm for a burn in / torture test of 30 hrs X was kinda (but not really) warm, Y & Z had ice hanging of the motors :mrgreen:

I'm glad to have provided Jack with some insight into what could be a lucrative job, a lot of companies don't have the space. tooling or personal to do everything in house and sub projects like this out.
Last edited by SegoMan DeSigns on Tue Jul 19, 2022 3:10 am, edited 1 time in total.
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Re: Pricing a very large order

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SegoMan DeSigns wrote: Tue Jul 19, 2022 3:02 am How are you getting the 31.25 sheets of material weighing in at 20,000 lbs to / from the yard for the initial shearing??
Are you actually going to tell the customer to drop it off at your competition?
Will they sheer outside stock? if they have a shear I'm sure they have press punches too (bumper pull, tractor driven turret or otherwise) how much are they charging to sheer? I see an hr / sheet to load sheer and stack so that is $75 / sheet x 32 = $2,400

I just loaded 105 amp consumables and bumped the cut speed to 62" Ipm quality / 76" ipm production.
Need I remind you of a thread where I harvested a full sheet of 3/4" with $10 in consumables?
I can see a consumable budget in the $300+ range for this project. with a second torch your harvesting the skeleton behind the gantry.
The Hyperthem at 105amps has a duty cycle up to 80%, the time it takes to strip the stock and reload the Hyperthem has cooled and is saying bring it on man. I see aprox 1 hr / sheet to load cut and strip that is 32 hrs give or take, add to that doss removal / stacking and banding.
My 20 Hp compressor has a continuous run mode that keeps the heads cool by holding the intake valves open when at full operating pressure.
My Clearpath servo's tossed around the 400 lb gantry at speeds of 500 / 750 / 1000 ipm for a burn in / torture test of 30 hrs X was kinda (but not really) warm, Y & Z had ice hanging of the motors :mrgreen:

I'm glad to have provided Jack with some insight into what could be a lucrative job, a lot of people don't have the space. tooling or personal to do everything in house and sub projects like this out.
:Like :Like :Like
Nice summary of important data for doing his quote. I hope that Jack gets the job and makes out well.
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Re: Pricing a very large order

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SegoMan DeSigns wrote: Tue Jul 19, 2022 3:02 am How are you getting the 31.25 sheets of material weighing in at 20,000 lbs to / from the yard for the initial shearing??
That is why you set up the entire deal BEFORE things get started.

There are a LOT of variables here, and I cannot possibly lay out the perfect plan without knowing everything. :roll: These decisions must be made by the OP.

LOGISTICS is about the efficient movement of a product at the most cost effective and expedient manner.

Say the customer is buying the material from ACME STEEL in Anytown, England. ACME STEEL has a shear that can cut up the plate to 300mm squares for a price per cut, or a price per sheet, or whatever. The customer never thought to ask if the yard can cut up these plates for them, or perhaps the cut fee for the retail customer is too high, or maybe he doesn't want to be involved in the production process at all. Some shops WILL do a job for a metal shop that brings constant business because they have established a business relationship, but will NOT do a one off job for a walk-in customer.

The customer thinks the plasma table will be used to cut up the plate, so he incurs the cost of transporting the 10 TONS of huge steel plates to the shop. Now the shop has to pay transport all of that metal back to the shear, and then back to the shop again.

It would be BETTER to get the customer's okay to have the plates sheared (at least in ONE direction) rather than plasma cut, to save money. The 1000 plates can be palletized, and either picked up by the OP or delivered to his shop for hole punching (and cross shearing?) with his new ironworker! :HaHa

If the customer has the material already, and is willing to deliver it to the plasma table, it MIGHT be better or more cost effective to deliver it to ACME directly. Is it a shorter distance? Will he pay less tolls? Whatever. If not, then the plates are delivered to the plasma table, and the OP transports them (farther away?) to the shear for cutting, and returns with two pallets of plates to be punched with his new ironworker! :HaHa
Are you actually going to tell the customer to drop it off at your competition?
Who says a steel yard is competition? The steel yard may not be interested in "such a small job" (to them), or their price-per-hole is too high for the customer, or they are six weeks out on a job like that. There are a HUNDRED reasons why the steel yard that SELLS the steel might not want to, or might not be ABLE to produce the plates by the customer's deadline. They might be GLAD that someone is going to punch the 4,000 holes into the 300x300mm sheared plates with his new ironworker! :HaHa
Will they sheer outside stock? if they have a shear I'm sure they have press punches too (bumper pull, tractor driven turret or otherwise) how much are they charging to sheer? I see an hr / sheet to load sheer and stack so that is $75 / sheet x 32 = $2,400
I will not attempt to GUESS at what the yard would charge to shear the material in ONE or BOTH directions. it could be a price per cut, or an hourly rate for the shear, or who knows!?
I just loaded 105 amp consumables and bumped the cut speed to 62" Ipm quality / 76" ipm production.
Need I remind you of a thread where I harvested a full sheet of 3/4" with $10 in consumables? I can see a consumable budget in the $300+ range for this project. with a second torch your harvesting the skeleton behind the gantry.
Is a second man running that torch and pulling the skeleton, or does production stop until YOU do that?
The Hyperthem at 105amps has a duty cycle up to 80%, the time it takes to strip the stock and reload the Hyperthem has cooled and is saying bring it on man. I see aprox 1 hr / sheet to load cut and strip that is 32 hrs give or take, add to that doss removal / stacking and banding.
There is NO dross removal with a shear and puching holes with his new ironworker! :HaHa
My 20 Hp compressor has a continuous run mode that keeps the heads cool by holding the intake valves open when at full operating pressure.
With his new ironworker! :HaHa the plasma table is free to do another job simultaneously.
My Clearpath servo's tossed around the 400 lb gantry at speeds of 500 / 750 / 1000 ipm for a burn in / torture test of 30 hrs X was kinda (but not really) warm, Y & Z had ice hanging of the motors :mrgreen:

I'm glad to have provided Jack with some insight into what could be a lucrative job, a lot of companies don't have the space. tooling or personal to do everything in house and sub projects like this out.
I am sure he has room for his new ironworker! :HaHa

Joe


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Re: Pricing a very large order

Post by Joe Jones »

When a large job comes into a small shop, the owner must be smart about time and money.

Yes, he can pound his chest and boast about how he has a forklift to move the large plates onto the table, and a big air compressor, and a powerful plasma torch, and a 7" grinder with a wire cup brush for dross removal, and ... and ...

If this is the ONLY job the shop has, it might be beneficial to cut all of it on the plasma table. He sets the price, and pockets ALL of the money. Great. 200 hours later (five 40-hour weeks?) he has 1000 plates cut,, cleaned, stacked and ready to ship out. The compressor and plasma torch have another two hundred hour of use on them. He takes DAYS to do the job as a one-man shop, or he pays a helper, and it STILL takes DAYS. The end result is 1000 plates, each with four holes, sold at $(n.nn)

But if he has other jobs lined up, then he is pushing those jobs back, while he ties up the plasma table for 1000 square plates. So the shop is not bringing any more money PER HOUR.

If ANYTHING goes wrong, the job is delayed. The customer is unhappy, and he tells everyone in town about his "bad experience with THAT GUY."

"What could go wrong, Joe?"

The compressor could die. The plasma cutter could die. The power could go out in the town. The cnc table could quit. The forklift could blow a hydraulic hose. About a hundred other things that would slow down or STOP the job, and all of the other jobs stacked up behind it.

At the end of the job, NOTHING has improved in the shop. Yes, you got paid, but the money VAPORIZES in bills and such. YOU KNOW IT WILL. This shop doesn't get a $20,000.00 (?) job every day. He even described this as a "big job" for his shop, which means he usually does small stuff. In other words, a huge CHECK like this is not dropped onto the desk every day. Translation: An opportunity to add a nice new ironworker to the shop doesn't walk through the door every single day.

The alternative is to be smart about this, and keep your shop running while another company shears the plates into squares. Meanwhile you are doing other jobs. You pick them up, or they are delivered to your shop, along with your new ironworker! :HaHa You set up the punch, and spend maybe two full days punching holes. (15 seconds per hole = one minute per plate = 16 hours).

NO dross removal.
NO oblong holes or other typical plasma table issues.
NO stopping to change consumables.
NO moving of heavy full size steel plates.
NO breathing deadly fumes for 200 hours for no good reason.

At the end of the day, you still got other jobs done. You got paid something, and you added a new ironworker to your shop! :HaHa

Joe



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Re: Pricing a very large order

Post by adbuch »

This one should do the job for the holes. Now we just need to find a shear that won't warp the plates when cut.

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Re: Pricing a very large order

Post by Joe Jones »

I think he should look at whatever is available to him in his country.

Joe

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Re: Pricing a very large order

Post by Joe Jones »

jackgreen91 wrote: Mon Jul 18, 2022 4:40 pm I got an actual number response from were £32/unit and £29/unit excluding the material but to me that sounds excessive.
I am not familiar with international currency. What does £32/unit and £29/unit translate into, in U.S. Dollars?

Ahhh... 1 £ = $1.20 US Dollars. See, that is $35.00 each! $35,000.00 for that job!? and that price with the material SUPPLIED?

At 24£ each, (a $29,000.00 job!) you would be a FOOL to not take advantage of this, to add a nice new ironworker to your shop.

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Re: Pricing a very large order

Post by arnegrant »

In my shop, in the US, this would be a regular sized order.

$3 to $4 a pound with material is what I charge, finished (painted)

So lest material ($1 a pound) lest finish (.50 a pound) gets you 1.50 to 2.50 a pound.

Say $2 a pound, 20,000 pounds that's $40,000.

1000 parts that's $40 a part.

Exchange rate is 1.2, so that's like 33 or 34 UK pounds a part.

Total job 33,000 or 34,000 UK pounds all in.

Equivalent.

I make 8% profit at the end of the year, I've been doing this awhile and I'm not rich and I'm not broke.

I wait to buy new equipment until I see if I made money. BUT you can't be breaking down with old equipment doing work.

Make sure of their tolerances and your ability to meet them before you take the job.

If tolerances were OK with just plasma I would just use plasma. If tolerances need better we cut the part on plasma so it lines up and then run a ironworker die through the hole so it was exact.

One punch should be able to clean out the 4,000 holes pre burned on plasma on your job without wearing out. If needed.

One of the best pieces of advice I've gotten is to figure out how much money they have on the table and make sure you take all of it - because you are going to need it.

(Lots of commercial steel shops go broke from pricing too low).

Good luck, have fun
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Re: Pricing a very large order

Post by adbuch »

Now this is the way it should be done!
David
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Re: Pricing a very large order

Post by SegoMan DeSigns »

Joe,

John has already stated he has no room for an iron worker, he has done research into pricing and is awaiting further details on the job. You don't know all of the costs associated with running his business in the UK. We understand the fact that you want one bad, have you even made a concerted effort to find a good used one that still has life in it?? Or you could build your own like I do, I do this with just about everything I own as I will know how to fix it if / when it breaks.

To answer your question Mr C of CNC is running the table while I'm harvesting the back side of it with a torch.(One man shop) The other so called problems you mentioned has multiple threads on this site on how to deal with them. Like a water table to eliminate smoke.

Your lack of confidence in your tables and the ability to deal with daily problems associated with a production environment is showing in your posts. You are on a Plasma site telling people not to use a CNC Plasma Table. :-? :-?

David,

Good solid information as usual and pics from someone who knows how to get things done :Like :Like
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Re: Pricing a very large order

Post by Joe Jones »

SegoMan DeSigns wrote: Thu Jul 21, 2022 1:18 pm Joe,
You are on a Plasma site telling people not to use a CNC table. :-? :-?
I never told him not to use a CNC plasma table. I said that a small shop RARELY has such a large and potentially highly profitable single order walk through the door, so if he can add a new ironworker to his shop IN THE PROCESS of completing THIS ONE ORDER, it makes perfect sense to do so, EVEN THOUGH he could do it all by hand with his plasma table. The ironworker would then pay for itself, moving forward.

His "room" issue is a simple matter of arranging his shop to accommodate the machine. He even stated that he might build an extension onto the shop to house the machine. Well, DONE RIGHT, there would be enough money to DO THAT! BTW, it is not unheard of, to go to a bank with a multi-THOUSAND (Dollar or Pound) contract in your hand, to BORROW the money to build the shop extension, and to purchase the machine that will pay for itself IN ONE JOB.

This is not about me. This is not about any lack of confidence you mistakenly believe I have in my table, or any inability to deal with production. That is just CRAP. You must have forgotten about the day I decided to build a Christmas parade float. TWELVE DAYS from a thought in my head, to a quick sketch on a sheet of paper, to driving the float down Main Street in the parade to win the GRAND CHAMPION AWARD for having the best parade float in the parade's 25 YEAR HISTORY. I had ONE HELPER. I designed it to be repurposed as a storage shed on my property after the parade. I dare say not a lot of people think that far ahead.

This is about COMMON SENSE. Frankly, he COULD produce these 1,000 plates with the four 22 mm holes with a handheld ACETYLENE TORCH, if he wanted to do so. So tell me, if he posted that was his plan for this job, would YOU then chime in, and tell him to "be smart" and buy a CNC PLASMA TABLE?

Joe


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Re: Pricing a very large order

Post by SeanP »

I do a good few of those plates, same thing customer provides material, he brings it to me and collects it though.
I can do a 32 parts from a full 8 x 4 plate in 2hrs best, I'd do better if I had a bigger plasma!
I usually get 5 or 6 plates to do every 3 to 4 weeks, a 1000 is a lot of plates, think I would get naffed off with so many! Suppose it depends on how fast they want them.

I really should get setup for common line cuts on some of the plates as adbuch says 👍

I wouldn't be too sure about shear and punch probably end up costing more with all the handling, and distortion could be a problem.

For packing I clean and pack as machine is cutting, 100mm wide stretch cling film is your friend, I lay 2 plates on a strip of 50mm x 6mm
Protruding from the bench wrap 2 ends and stack on a pallet, stops any slipping around, wrap pallet with a wide roll.
I use the narrow roll for packing near enough all the parts I cut, it works well.

Ok I get 6euro a plate for those, that works out ok for me.
I also give the plate a light spray of ac90 before starting that helps a lot with pierce slag pile problems.
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Re: Pricing a very large order

Post by Joe Jones »

Well, too bad the job didn't come to me. It would be DONE by now, and I would have a new ironworker in my shop. :HaHa

Joe


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Re: Pricing a very large order

Post by SegoMan DeSigns »

So with SeanP's figures that would be 4 x 32 = 128 plates / 8 hr shift 1000 / 128 = 7.8125 days 8 days x 8 hrs = 64 hrs not 200 hrs.

Like he said a bigger table and torch would cut that down to a 40-50 hr job not 200 hrs..

Edit:

Fixed misspelled name
Last edited by SegoMan DeSigns on Thu Jul 21, 2022 10:29 pm, edited 1 time in total.
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Re: Pricing a very large order

Post by Joe Jones »

SegoMan DeSigns wrote: Thu Jul 21, 2022 9:09 pm So with Shawn's figures that would be 4 x 32 = 128 plates / 8 hr shift 1000 / 128 = 7.8125 days 8 days x 8 hrs = 64 hrs not 200 hrs.

Like he said a bigger table and torch would cut that down to a 40-50 hr job not 200 hrs..
Who is "Shawn?" The OP signed as "Jack." He is the one doing the job.

He also said "AT BEST" and his estimate was for the yield of cutting 32 tiles out of ONE SHEET of material that is already ON the table, not physically removing 32 20-pound steel tiles, stacking them onto a pallet, cutting up and disposing of the skeleton, and placing another sheet onto the table, and stopping for a bathroom break, and lunch, and a smoke, and other interruptions, and changing consumables, and ... and...

I would pay MONEY to watch him try to produce 1,000 tiles to spec, from material supplied by the customer, in 65 hours or less! :lol: Of course, if he failed to meet the deadline, then I would want that money paid to ME for wasting my time.

Of course he edited or deleted his reply, so it no longer exists in this thread.

Joe



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Re: Pricing a very large order

Post by SegoMan DeSigns »

Joe Jones wrote: Thu Jul 21, 2022 9:50 pm
Who is "Shawn?" The OP signed as "Jack." He is the one doing the job.
4 lines up (from your post) if you can count that far.. You appear to be one of the 5/4 bad with fractions and math in general :HaHa

SeanP Cuts similar plates, he shows a 45 amp torch on his sig line these are probably mounting plates for beams and or posts.

SeanP is also know for his break away torch mount share:

viewtopic.php?f=103&t=24499
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