Could You Benefit from Contract Manufacturing Services?

Reducing the costs of machined parts can be as easy as having a conversation: always communicate with a shop about your purchasing intentions. 

If you plan to place a particular order on a recurring basis, the right contract manufacturing services partner can talk to you about opportunities to obtain the best costs over time with a long-term contract. 

Here, we’ll review key considerations to get the most from contract manufacturing services and what to look for in a partner. 

Considerations for Long-Term Manufacturing Contracts  

Cost and delivery schedule

Costs vary depending on the buyer’s preferred delivery schedule. In the simplest terms, shops think about costs in three tiers: 

1. Highest price = a low quantity of parts delivered immediately 

2. Mid-range price = a high quantity of parts delivered in multiple shipments over a fixed period of time (e.g., quarterly) 

3. Lowest price = a high quantity of parts delivered immediately 

In other words, even if you can’t justify option #3, you can talk to your shop about option #2 and save money compared to option #1. 

Potential for revisions 

Some orders are a better fit for long-term contract manufacturing services agreements than others. An essential factor to consider before entering a contract is the potential for part revisions. 

For example, suppose you agree to order 10 parts per month over six months with the understanding that the shop will machine all 60 parts at once and ship them from inventory. What happens if there is a revision change in that time? Who is liable for the parts that can’t be used: the shop or the customer? Most shops will clarify in their contracts that they can’t be held liable for engineering changes, leaving you to pay for parts you don’t actually need. 

To avoid this risk, we recommend long-term contract manufacturing services for mature parts unlikely to undergo revisions. 

But wait—if a part you plan to order on a recurring basis may undergo revisions, you still have options! In these situations, consider a blanket PO. When you submit a blanket PO to Focused on Machining, you agree to purchase X parts per month over Y months, but we won’t machine the parts all at once, giving you the opportunity to make minor revisions. 

Blanket POs allow us to plan for the best (i.e., most cost-effective) path forward. For instance, we might design tooling and fixturing to improve efficiency or negotiate lower prices with material suppliers, leading to cost savings that we can pass on directly to you.

Assembly needs

Entering a long-term contract manufacturing services agreement is a perfect time to discuss your assembly needs. If we agree to deliver three unique parts in quantities of 10 every month, and those parts go together, talk to us about assembling the parts for you and shipping the complete assemblies. 

What to Look for in a Contract Manufacturing Services Partner 

As with any manufacturing engagement, vetting a shop before entering a contract manufacturing services agreement is important. Here’s what to look for in a partner: 

Robust ERP system 

A robust ERP system is essential to a shop delivering on its promises. At Focused on Machining, we schedule every job in our ERP system as soon as we receive a PO or enter a contract. When we tell you we can make X parts for you every month, it’s because we’re looking at our schedule and can confirm we have the machine capacity and resources to support that workload. 

Regarding assembly work, our ERP system has excellent BOM capabilities to ensure we have every material, component, and more when we need it for even the most complex assemblies. That’s just one of the ways we maintain such a high on-time delivery rating. 

In-depth contract review process 

Big problems occur when shops don’t review contracts as thoroughly as they should. We’ve seen buyers burned by shops that take on contracts only to realize they can’t actually satisfy all the terms. The shops walk away from the contracts, and the buyers are left scrambling. 

At Focused on Machining, we take the time to carefully review each contract to ensure we can deliver on all terms.

Superb inventory management 

If you’re trusting a shop to hold inventory for you, you need assurance that their inventory management system is top-notch. The shop should be able to walk you through its approach to tracking and organizing inventory so you always know precisely what you’re getting. 

One of the best ways to assess a shop’s inventory management capabilities, as well as other critical factors that make for a good contract manufacturing services partner, is to schedule a shop visit. Focused on Machining is happy to welcome you to our shop in person or via a virtual tour. 

Contact us to discuss your contract manufacturing needs.

You Get What You Pay for in Manufacturing

You get what you pay for in manufacturing. Unfortunately, many buyers learn this lesson the hard way—something we’ve seen firsthand at our AS9100 machine shop. 

There has been a recent trend of buyers returning to Focused on Machining for parts we lost bids on months ago due to our “high” prices. The buyers selected cheaper shops but paid the ultimate price: poor quality, lost time, and costly rework. One is now six months behind schedule and under the gun to complete a critical project. 

We’re happy to work with these buyers now to get them the parts they need. But imagine the time, money, and stress they could have saved by having us machine their parts in the first place. 

The Importance of Vetting Suppliers

One potential reason for this trend is that buyers and suppliers aren’t arranging shop visits with the frequency they once did pre-COVID. 

When visiting a precision machine shop, buyers have the opportunity to observe the shop’s systems, equipment, people, and processes. They get a good sense of what the shop can offer them, and the shop can instill confidence that they’ll get the job done right and on time. 

Today, many initial conversations occur over the phone instead of in person, and buyers have less insight into what’s happening behind the scenes at a shop. Still, the right supplier should be not only willing but also happy to answer key questions to instill confidence in their work: 

• Does the shop have a robust ERP system? 

• Does the shop have a fully detailed scheduling module they can show you? (Trust us, not all scheduling modules are created equal.) 

• How does the shop arrive at their costs (i.e., what are their labor, quality, and overhead rates?) 

• What is the shop’s on-time delivery rate? 

The Focused on Machining difference 

In the case of our AS9100 machine shop, there is a lot going on behind the scenes as we quote jobs and prepare to make promises to customers in high-risk industries like aerospace, defense, and medical. These industries require (and deserve) the very best—and that’s what we deliver.

We develop fast, accurate quotes using Paperless Parts quoting software. 

We look at our ERP system, scheduling module, and machines to assess open capacity and plan jobs. 

We track material orders and calculate how long it will take for a part to undergo all necessary operations. 

We follow strict processes with proven track records for success. 

We’d be more than happy to walk you through our processes and give you a tour of our shop—either in person or virtually. Just let us know if that’s something you’re interested in!

Higher Costs = Higher Value 

It’s true that our prices are often 15-20% higher than other suppliers—there’s no use denying it. But just as low prices come with hidden costs, higher prices promise hidden value. When you work with Focused on Machining, you’ll see that value in the form of the following: 

• On time delivery of your project

• High quality, and a guarantee to correct any mistakes should they take place

• AS9100 certification 

• Advanced software and processes, that enable us to achieve parts on time and at a high quality 

Simply put, we have what it takes to get your parts done right the first time. 

Tip: consider the total product cost

When you think holistically about your project and consider the total product cost instead of focusing too much on the price per piece, you’ll find that, in many cases, a higher price per piece yields a lower total product cost. Some of our customers learned that lesson the hard way, but you don’t have to.

The next time you need critical parts for a high-risk application, partner with an experienced AS9100 machine shop that will deliver the most value for your money. Request a quote from Focused on Machining.

The Importance of Investing in a High-Quality Prototype

We see it all the time: A customer wants an inexpensive prototype delivered as soon as possible, so they order one from an online marketplace. Everything seems okay at first, but eventually, they find out the hard way that when you choose the cheapest option, you get what you paid for.  

The first sign of problems typically occurs when the customer needs to assemble the prototype into a product, and it doesn’t fit right. Or when they’re ready to start production, and the prototype hasn’t been optimized for fast and cost-effective manufacturing at scale. In some cases, the customer may not notice issues until much further down the line when a product wears out quickly or doesn’t perform as well as it should—all because they chose a cheap prototype over a quality prototype to save a little bit of money up front. 

We can tell you from experience that if you plan to bring a prototype to production, your best bet is to work with a contract manufacturing services partner you trust from the beginning. Even if you invest more money initially, you’ll save time and money in the long run. The key is to communicate openly with the shop about your plans for the prototype so they can approach the project holistically and help you achieve your long-term goals. 

Prototype-to-Production Case Study 

Still not convinced? This real-life example might change your thinking. 

Struggling to achieve the right fit during prototyping 

A sheet metal shop customer of ours was tasked with creating a camera housing for one of their end customers. The sheet metal shop fabricated most of the parts in-house, with the exception of six tight-tolerance parts that had to be machined. 

The end customer outsourced the machined parts to a precision machine shop, but when it came time for the sheet metal shop to add them to the assembly, they didn’t fit. They knew the parts hadn’t been designed or machined properly—possibly both. 

The sheet metal shop elected to take matters into its own hands, convincing the end customer to let them choose a vendor for the machined parts and manage the relationship. They reached out to Focused on Machining to create prototypes of the machined parts, which would eventually be produced in higher volumes. But they thought our prototype pricing was too high. So, they turned to a less expensive precision machine shop. 

Though the precision machine shop did a fine job on the parts, the sheet metal shop decided they wanted a local contract manufacturing services partner to maintain better control of the process and slash lead times. That’s when they reached back out to Focused on Machining. 

This time, the sheet metal shop customer was more open to spending money upfront to save money in the long run. They had proven the concept with the previous shop and knew that if we could achieve the required tolerances, the parts would fit together perfectly. This is where clear communication between the customer and us was crucial. 

Communicating openly to align on long-term goals 

The sheet metal shop customer wanted a small batch of 25 parts each to start. They shared their target price per part for high-volume production while acknowledging that the price per part would be higher for an order of 25. They asked us to quote the batch of 25 parts however we needed to, but made it clear that they expected us to hit a lower price point eventually. 

We happily agreed to these terms. 

Quoting the initial 25-part order higher than the customer’s target price per part allowed us to spend time building the proper fixturing, which was essential for achieving the parts’ tight tolerances quickly and accurately. 

We then calculated the maximum amount of precision machining time that would allow us to hit our customer’s target price per part and determined how to stay within that parameter. Our next step was investing in high-quality tooling, which was expensive but would enable us to achieve better speed and precision.

Finally, we ran the 25 parts and delivered them to the customer. Their response? “You guys make really beautiful parts!” The machined parts fit into the assembly perfectly with no issues. The end customer was thrilled and put in an order for 100 parts per month, which the sheet metal shop will outsource to Focused on Machining. 

Because we were given the flexibility to put in the extra work during prototyping to perfect our process, we can now hit our customer’s target price point for high-volume production without a problem. 

The moral of the story is…

…if you’re developing a prototype that you plan to transition to production, tell us your goals from the start. Let us do the prototyping at a cost that makes sense (yes—a higher cost than an online parts marketplace), and we’ll ensure that you’re wildly successful during production. The extra money you invest upfront will pay off in the long run.

Request a quote for our contract manufacturing services!

A Game-Changing Approach to Achieving CMMC 2.0 Compliance

Any manufacturer pursuing CMMC 2.0 compliance will tell you that the process is rigorous, to say the least. Focused on Machining is currently working to achieve Level 2 certification, which has a long list of 110 requirements aligned to NIST SP 800-171. We anticipate that our journey to CMMC certification will take us a total of 18 months when all is said and done. 

As a quick refresher, the US Department of Defense (DoD) is mandating that all manufacturing suppliers acquire and maintain CMMC certification to prove they meet strict cybersecurity standards.

Understandably, not all shops have the time, money, or resources to complete such a rigorous process. CMMC 2.0 compliance consultants and IT professionals are available for support, but they charge well into the six figures. Rather than paying such a hefty price or attempting the process themselves, many small shops are opting out of CMMC 2.0 compliance entirely. 

This means that by the time the requirement takes effect in 2024, the DoD is poised to lose a large number of suppliers. That’s an especially tough pill to swallow at a time when their supplier base is already shrinking for unrelated reasons, such as shop owners reaching retirement age and shutting down or consolidating. 

Focused on Machining recognizes the challenges surrounding CMMC certification for DoD customers and suppliers alike. But we knew that opting out of CMMC 2.0 compliance simply wasn’t an option for our aerospace, space, and defense-focused shop. In fact, we wanted to get ahead of the game and become certified before the requirement even takes effect. So, we found a way to be part of the solution. 

Using Our ERP System to Manage the CMMC Certification Process 

Faced with the prospect of dedicating a year and a half to pursuing CMMC 2.0 compliance, we set out to determine how to manage such a complex process without hiring an expensive consultant or IT professional. From the beginning, our goal was to keep the associated costs as low as possible so we wouldn’t have to pass those costs on to customers through increased prices. 

We thought, “Why not approach the process the same way we would a complex part?” Naturally, that idea led us to our ERP system, ProShop. 

When making a part for a customer, we create a work order in ProShop outlining a long series of steps to complete the part. All related documentation is stored in the system for easy access. We check off each step as we complete it so everyone can view where we are in the process. 

Here’s a look at the work order we created along with the ProShop team for CMMC 2.0 compliance: 

When we click on each of these operations, a new page opens where we can view the steps that must be completed and who is responsible. The assigned team member completes the step and marks it as such. 

During our eventual CMMC audit, we’ll be able to walk the auditor through the work order and show them proof of specific tasks and documentation. We took a similar approach when we went through the AS9100 certification process, and it was very successful. 

A digital solution to benefit manufacturers everywhere 

Ultimately, manufacturers everywhere will have the chance to benefit from our CMMC 2.0 compliance work order. Once we complete the process ourselves and optimize the work order to be as useful as possible, ProShop will release it as a module available for purchase.

We hope this offering will enable more shops to opt in to pursue CMMC 2.0 compliance. Because while those shops may be our competitors, we know they are a critical part of the American manufacturing industry that we love so much. 

Are you looking for a machining partner ahead of the game in achieving CMMC certification? Request a quote from Focused on Machining! 

Improving Precision and Efficiency with Multi-Axis Machining

As an aerospace machining shop committed to innovation and continuous improvement, it was only a matter of time before we progressed from standard CNC milling to multi-axis machining. 

Keep reading to learn how our multi-axis machining capabilities empower us to deliver unparalleled precision and efficiency, setting us apart from other shops offering contract manufacturing in Colorado. 

The Challenge: Machining Complex Parts with Tight Tolerances

We’ve developed a reputation for taking on challenging projects, so we’ve seen an influx of complex parts with features on all sides and tight tolerances. These two factors ultimately drove our decision to implement multi-axis machining at our aerospace machine shop. 

Machining a complex part with features on all sides using a traditional vertical mill requires repositioning the part multiple times. This manual process is not only time-consuming but also increases the risk of error—especially when the part has tight tolerances or standard locational tolerances on different sides that demand perfect alignment. 

If the machinist doesn’t locate the part absolutely perfectly from one setup to the next, there’s a good chance the part won’t meet the customer’s specifications. 

The Solution: Multi-Axis Machining 

Multi-axis machining enables us to reduce operations (i.e., human interference) to ensure accuracy, precision, and speed for the most complex parts. Parts that previously required 4-5 operations on a vertical machine are now achievable in 1-2 operations. Here’s how we do it…

The fourth rotational axis 

With a bit of ingenuity, we transformed two of our vertical machines into 4-axis machines. Now, in addition to the standard X-axis (side to side), Y-axis (forward and back), and Z-axis (up and down), the integrated fourth rotary axis allows us to rotate a part to machine it from all sides without removing it from its fixturing. 

Zero-point fixturing

A cornerstone of each multi-axis machine is the RockLock base, a permanent fixturing setup we invested in for each machine. The RockLock base allows for “easy movement of vises, fixtures, and tooling from machine to machine with no setup time,” enabling incredible precision. For example, we can machine all a part’s OD features, flip the part, and drill tight-tolerance holes on the end without ever having to adjust the fixturing.

How Customers Benefit from Our Multi-Axis Machining Capabilities 

Customers seeking contract manufacturing in Colorado will benefit from our multi-axis machining services in the following ways: 

1. Fast lead times. Due to the efficiency of multi-axis machining, we’ve significantly cut the time it takes for parts to move through our shop. In addition to the machining process itself being faster, parts require fewer quality checks since we’re completing multiple operations in one setup.

2. Incredible accuracy and precision. Reducing the number of setups minimizes the risk of human error that can occur when repositioning a part. As a result, we can achieve tight tolerances and complex features with unbeatable accuracy and precision.

3. Capacity for high-volume work. Another significant benefit of our increased efficiency is that we have the capacity to take on high-volume production orders and deliver them on time—no problem. 

What’s Next at Our Aerospace Machine Shop? 

We currently have two machines equipped for multi-axis machining, with a third hitting the shop floor very soon. In even more exciting news, we’re also preparing to welcome our first 5-axis machine, further enhancing our capabilities. 

Implementing multi-axis and 5-axis machining is about more than just upgrading technology to us; it’s a commitment to our customers that we’re steadfast in our mission to deliver the highest-quality parts in the shortest time. 

Need contract manufacturing in Colorado? Request a quote today, and let us put our advanced technology to work for your complex parts.

Our Journey to CMMC Certification: How We Protect Your CUI

Effective 2024, companies providing manufacturing services for the US Department of Defense (DoD) will be required to maintain a new certification called CMMC (Cybersecurity Maturity Model Certification), proving they meet rigorous cybersecurity standards.

As one of the country’s top defense and aerospace machine shops, Focused on Machining is working hard to achieve CMMC certification. 

Although we already follow well-established procedures to protect customer information, the journey to becoming CMMC certified will ensure all sensitive information that comes through our shop is secure to the highest standards of compliance. 

What Is CMMC?

According to the US Department of Defense: 

“The Cybersecurity Maturity Model Certification (CMMC) program is aligned to DoD’s information security requirements for Defense Industrial Base (DIB) partners. It is designed to enforce protection of sensitive unclassified information that is shared by the Department with its contractors and subcontractors. The program provides the Department increased assurance that contractors and subcontractors are meeting the cybersecurity requirements that apply to acquisition programs and systems that process controlled unclassified information.”

The DoD introduced the initial vision for the CMMC program in 2020 and has spent the past few years refining it. The latest version, CMMC 2.0, has three compliance levels: 

• Level 1: 15 requirements 

• Level 2: 110 requirements aligned to NIST SP 800-171 

• Level 3: 110 requirements based on NIST SP 800-171 & 800-172

Focused on Machining is working to achieve Level 2 certification, as Level 3 is necessary for only the most sensitive aerospace and defense projects. 

How Our Defense and Aerospace Machine Shop Is Preparing for CMMC Certification 

While CMMC certification is specific to aerospace and defense manufacturing, customers in all industries will benefit from working with a CMMC-certified shop. Essentially, customers can be fully confident that these shops will keep their data safe and secure. 

Obtaining CMMC certification is a long and strenuous process—one that can take up to 18 months. But rest assured, we already have many measures in place to help us meet this requirement. Here are several of them: 

1. Secure quoting and order entry 

During the quoting stage of a project, we use our ITAR-compliant quoting platform, Paperless Parts, to designate ITAR parts, which ensures a high level of protection for CUI (Controlled Unclassified Information), including prints and models. 

ProShop, the ERP system we use for order entry, also has ITAR designations. All Focused on Machining employees are ITAR-compliant and can access the information in the system. However, if ever we were to have an employee who isn’t yet ITAR-compliant, the ERP system would prevent them from accessing ITAR files. 

2. Employee training and development 

We train employees on all best practices and requirements for protecting sensitive information. Employees who have email addresses are trained on how to recognize and avoid phishing scams. All employees are taught how to identify CUI in a print and model and what measures to take to keep that information secure. 

3. Restricted and limited access 

Justin Quinn, our president, is the only person in our defense and aerospace machine shop permitted to print a copy of a print. We’re also working toward disabling USB slots on computers to ensure employees can’t download data from their computers. Additional multi-factor authentication practices prevent employees from accessing information remotely.

4. Building security 

Physical security is just as critical as digital security. We keep our building highly secure, requiring each visitor to come in through the front office and sign in. During the summer, when we open our garage bay to let the air in, we have a gate we close so someone can’t just walk in unless admitted. 

5. Vendor engagement 

As a general rule, we send vendors just enough information for them to get the job done right. That means none of our vendors are receiving access to customers’ complete prints or models. It can be a tricky balance getting them the right information without disclosing too much, but we’re willing to put in that extra work for our customers. 

Some of our vendors are also working to become CMMC certified, and as we move forward, we’ll prioritize working with these vendors. 

What's Ahead for Focused on Machining

We began preparing for CMMC certification in March 2023, and while the process is long and involved, we are dedicated to achieving Level 2 certification and confident that we’ll make it happen. 

We’ll continue to provide updates throughout the process so all our customers understand the transformative impact that becoming CMMC certified will have on our operations. 

Request a quote to work with us!