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Home > F.a.q. > Why is coil processing a high profit production method


There are four main reasons

The first is material saving, since Dalcos machines manufacture the same workpiece as made by traditional technology, but using 20% less raw material.

The second is the low capital investment: in fact Dalcos punching lines require a lower investment than similar sheet-fed punching systems with automatic loading and unloading.

The third factor is the low labor cost. This, together with the preceding factor, results in the minimum hourly cost compared to sheet-fed systems.

The fourth reason is the higher speed (see relevant FAQ for more details), which is converted into less cycle time per workpiece, compared to sheet fed systems.

The cost per workpiece is calculated as follows:

[cost per workpiece] = [raw material cost] + [hourly cost] x [cycle time per workpiece]

All these factors show the advantage of Dalcos coil processing technology over sheet-fed processing.

The figures below show an important case study presented at the Coil Processing Forum in Cleveland in April 2015.

Three production technologies are analyzed for the production of the sample part on the right.

C-SH: coil fed production, single hit

S-SH: sheet fed production, single hit

C-CT: coil fed production, cluster tools

In the first table it can be seen that with 5000 parts, the coil fed production with single hit is the least-cost production method. 

The following graph shows how the total production cost varies with N: again, over 20000 parts the cluster tools will be paid back and the coil fed production with cluster tools turns to be the technology to produce at the least cost and therefore generating the highes profit.