Data Inputs for Calculating Material Cost/Part
Field Name | Entered By | Entered At | Definition/ Notes |
Material Name | Vendor | Quote (Material Section) | Material is selected from Parts Portal’s list, searchable by material, type, grade, shape, size |
Supplier | Vendor | Quote (Material Section) | Supplier is selected from your configured list. If an API is connected, pricing data can auto-populate. |
Yield | Vendor | Part Record & Quote | Number of parts that can be produced from one raw unit (sheet/bar). Impacts calculated quantity needed. |
Price Per Size | Vendor (or API) | Quote (Material Section) | Price for one unit of material. Auto-filled if an API is connected. |
Part Quantity Threshold Multiplier | Vendor | Configuration | Multiplier applied to adjust material cost per part based on the ordered quantity. |
Part Quantity | Customer | RFQ submission | Number of parts the customer is requesting. Impacts yield and material cost per part. |
Parts Portal Calculates Material Cost/Part
Below is the simplified formula flow for Material Cost/Part:
Determine Material Required
Part Quantity ÷ Yield = Material Units Needed
2. Calculate Material Cost Per Part
Material Units Needed × Price Per Size ÷ Part Quantity = Base Material Cost Per Part
3.Apply Part Quantity Threshold Multiplier
Base Material Cost Per Part × Part Quantity Threshold = Material Cost/Part
Price Formula (Quick View)
Price per Part = Material Cost/Part
Tooling Cost/Part
Setup Cost/Part
Machine Cost/Part
Labor Cost/Part
Pricing Components Explained
Term | Description |
Material Cost/Part | Total material cost for the job (rounded to full sheet or bar sizes) ÷ quantity ordered |
Tooling Cost/Part | (Initial tooling cost + recurring tooling cost) ÷ quantity ordered |
Setup Cost/Part | Setup labor cost per part (machine setup, fixturing, first‑piece inspection, etc.) |
Machine Cost/Part | Cost of machine run time allocated to each part |
Labor Cost/Part | Cost of operator labor time allocated to each part |
Combined Multiplier | Adjustment factor for complexity, lead time urgency, and customer ranking (if applicable) |
Step‑by‑Step Pricing Breakdown
1.Calculate Material Cost / Part
Raw material is always rounded up to the next full sheet or bar size, then divided across all parts.
Material Cost/Part =
(Rounded # of sheets or bars × Price per sheet/bar) ÷ Order Quantity
2.Calculate Tooling Cost / Part
One‑time tooling costs are distributed evenly across all parts. Any recurring tooling costs are added per part.
Tooling Cost/Part =
Recurring Tooling Cost + (Initial Tooling Cost ÷ Order Quantity)
3.Calculate Combined Multiplier
The combined multiplier accounts for part complexity, lead‑time priority, and customer‑specific adjustments.
Combined Multiplier =
Part Complexity Factor × Lead Time Multiplier × Customer Ranking
4.Calculate Setup Cost / Part
Setup includes machine prep, fixturing, first‑piece inspection, and overhead. The total setup cost is adjusted by the combined multiplier and spread across all parts.
Setup Cost/Part =
((Setup Labor Rate ÷ 60) × Setup Minutes × Combined Multiplier)) ÷ Order Quantity
5.Calculate Machine Cost / Part
Machine cost reflects the actual runtime required to produce each part, adjusted for complexity and priority.
Machine Cost/Part =
(Machine Rate ÷ 60) × Run Minutes per Part × Combined Multiplier
6.Calculate Labor Cost / Part
Labor cost captures the operator time required to produce each part, also adjusted by the combined multiplier.
Labor Cost/Part =
(Labor Rate ÷ 60) × Run Minutes per Part × Combined Multiplier
7.Final Price per Part
All calculated components are added together:
Price per Part =
Material + Tooling + Setup + Machine + Labor
Numeric Example
Numeric Example
Order Details
Order Quantity: 125 parts
Material: 2 full bars @ $150 each
Initial Tooling Cost: $500 (one‑time)
Recurring Tooling Cost: $0
Setup Rate: $90/hr, 45 minutes
Machine Rate: $120/hr, 5 minutes per part
Labor Rate: $60/hr, 5 minutes per part
Combined Multiplier: 1.25
Cost Breakdown
Step | Calculation | Result |
Material Cost/Part | (2 × $150) ÷ 125
| $2.40
|
Tooling Cost/Part | $0 + ($500 ÷ 125)
| $4.00 |
Setup Cost/Part | [($90 ÷ 60) × 45 × 1.25] ÷ 125 | $0.56 |
Machine Cost/Part | [($120 ÷ 60) × 5 × 1.25] | $12.50 |
Labor Cost/Part | [($60 ÷ 60) × 5 × 1.25] | $6.25 |
Final Price/Part | Sum of all components | ≈ $25.71
|
💡 Tip: Pricing automatically recalculates if quantities, lead times, or complexity factors change, ensuring quotes remain accurate and consistent.