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Published · 2026-11-029 min read
Cost Per Hole and Payback: How to Actually Evaluate a Profile Machining Centre Before Buying

Comparing two machines — or comparing "buy versus keep the current line" — by sticker price never yields a conclusion. Only two numbers are truly comparable: machining cost per piece (or per hole), and the payback period of the incremental investment. Both can be calculated yourself; all you need is five cost figures and an honest method. This guide lays the ledger open.

1. Per-piece machining cost: five components

  • Depreciation: purchase price + freight and installation + initial spare parts, spread over 5 years (or your own horizon), divided by annual volume
  • Labour: operators × wage ÷ machines per operator. A CNC machining centre typically lets one operator tend 2–4 machines
  • Tooling and consumables: track tool life by hole count and convert to cost per hole; in aluminium it is usually a few cents, in steel an order of magnitude higher
  • Energy and air: spindle power × load factor × electricity price; typically a few yuan per machine-hour
  • Rework and scrap: the chronic cost of the current method — convert the current rework rate to money; a CNC route usually collapses this line

2. The payback formula and a worked example

Payback = incremental investment ÷ annual savings, where annual savings = (current cost per piece − new cost per piece) × annual volume. Example: a railing factory makes 30,000 profile brackets per month on three single-process machines (punch + drill press + edge mill) with four operators; after switching to one WGTA-4500, per-piece cost drops from ¥3.2 to ¥1.1 (labour 4→1, rework 5%→0.5%, tooling slightly up). Annual saving = ¥2.1 × 360,000 ≈ ¥750k; incremental investment ≈ ¥600k → payback ≈ 10 months. Neither the boldest nor the most conservative figure — a middle value from real-world assumptions. Your numbers must come from your own data.

3. Three scenarios, three shapes of ledger

  • High volume, single specification: the ledger lives in takt and labour — one fen off per piece is hundreds of thousands a year
  • High mix, small batches: the ledger lives in changeover and tooling — one drill jig saved per batch, multiplied by every specification
  • Refurbishment / rework business: the ledger lives in yield — scrap falling on warped stock and re-cut old holes is profit, directly

Current three-process line vs one machining centre: cost lines compared (worked-example basis)

Cost lineCurrent (3 machines + 4 operators)One WGTA-4500 + 1 operatorChange
Labour (monthly)4 operators, full shift1 operator tending + loading−3 operators
Rework / scrap5% (mostly marked-out hole drift)0.5%−4.5 points
Inter-process transport3 transfers per piece0Zeroed
ToolingPunch dies + drills + millsDrills + mills (slightly up)Die cost zeroed
DepreciationResidual value of 3 old machines1 new machine over 5 yearsIncremental investment = the payback object

Frequently asked questions

Can tooling cost really be computed per hole?
Yes — and it should be. Drill life is counted in holes (HSS in aluminium: hundreds; carbide: thousands); cost per hole = tool price ÷ total holes including regrinds. Most factories discover on first calculation that tooling is a smaller share than expected, and rework a larger one.
What payback period is reasonable?
The common industry range is 12–24 months. Under 12 months, re-check the assumptions (are volumes real, will labour really drop); over 36 months, seriously question whether the order structure and substitution logic hold.
What lines are most often missed in payback calculations?
Three: programming and commissioning labour (heaviest in the first three months); freed floor space and transport resources (a saving, often ignored); and residual value of disposed machines (also a saving). Add all three or the ledger is incomplete.
Does one machine replacing many always hold?
Not always. It holds when the operations can be merged into one setup: if your current process includes operations a machining centre cannot do or cannot do economically (very large cuts, heat treatment), discount the substitution ratio. Ask the vendor to mark every step of your process list as merged/retained — more reliable than any multiple.

Send us your five data points — monthly volume, current labour and machine list, rework rate, typical hole drawings — and we will return a cost comparison and payback calculation on your own basis, ready for internal project approval.

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