Estimate of Cost $aving

You may be able to achieve tremendous cost savings in areas never noticed before. Just think of the difference in labor costs: U.S. labor cost is about $40~$50/hour, while in China it is just about $4~5/hour.

Now do your homework and see:
Cost Saving Worksheet
Calculate Cost Saving  
Production Volume:
(pcs/month)
Estimated cycle time* per piece:
(minute)
Weight per piece:
(lb)
 
The labor saving you have=$
(/month)
* Cycle time per piece may include those for designing, tooling, manufacturing operations, QC, shipping, warehousing, etc.
Note: The cost here is a rough estimate. It is for your reference only. 
If you see a negative or small cost saving, it is because one or more of the following apply:  
  1. The volume is not high enough.
  2. The part is highly automated and involves less labor time (this might be due to the high volume leading to high degree of automation). 
  3. There is some fixed cost for importing, so if the volume is too small, the saving would not be significant or there is no saving.
In general, the parts good for offshore sourcing are those more labor-intensive and/or with higher volume.

Disclaimer: The cost saving shown here is a rough estimate in an ideal situation based on some assumptions. The real cost saving can only be calculated when a specific product with an engineering print or a sample is evaluated. For a quick and accurate cost saving estimate, please contact us. Thank you.