CostingIt is important to know in advance how much a welding or cutting operation will cost in order to keep within budget. Probably the most significant cost is that of labour and this can be up to 70 or 80% of the total cost. Other obvious costs, which must also be taken into account, include the cost of the raw material and the cost of consumables, such as gases, filler metals, and fluxes. However, there are costs that are not so obvious and may be forgotten in calculations. These may include the cost of machining and joint preparation, welding procedures and qualifications, capital cost and depreciation of equipment, moving materials, sub-assemblies or equipment around, power, preheat, any post-weld or post-cut treatment, repairs, inspection, and any third party services such as X-ray or ultrasonic NDT. All these can add up to a significant amount and may even remove the profit margin. There are ways of reducing costs and these include changing the process, consumable and equipment, automation or mechanisation, redesign of joints to give lower weld volumes, getting it right first time, introducing flow line operations or more efficient work practices where possible, and by training all operators in best practice.
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