Business financial model file
Machine Shop Financial Model
Separate machine-shop installation cash from metal, spindle time and operator hours before pricing completed job volume.
Opening investment and working cash
The original case purchases selected used/new machines outright; it does not lease those same machines in monthly OPEX. Power, air and inspection setup are separate capital uses. Actual installed quotes and part specifications can change every amount.
| Cash use | $ |
|---|---|
| CAPEX: Selected machining centre | 200,000 |
| CAPEX: Selected lathe | 120,000 |
| CAPEX: Inspection equipment | 30,000 |
| CAPEX: Air/handling equipment | 25,000 |
| CAPEX: Premises/power fit-out | 45,000 |
| Pre-opening: Commissioning, calibration and training | 12,000 |
| Pre-opening: Local plans/professional setup | 8,000 |
| Refundable deposit / tied-up cash | 8,000 |
| Opening stock / initial working inputs | 15,000 |
| Reserve: 2 selected fixed-cost months | 54,800 |
| Selected opening cash total | 517,800 |
CAPEX totals $420,000, pre-opening expense $20,000 and working cash $77,800. The deposit and opening stock tie up cash; they are not added again as monthly rent or consumed inputs. The reserve is a chosen fixed-cost buffer, not proof of full funding. Obtain actual installed/tax-inclusive quotes and dated opening payments.
Monthly fixed and variable OPEX
Two 160-hour machinist roles receive a$14,000 loaded budget, with 75% of 320 hours selected as productive. Estimating/office is separate. Tool wear and external finishing are per-job costs; base maintenance is a standing commitment, not an extra charge for the same consumables.
| Commitment | $ per month |
|---|---|
| Two machinists: loaded 160-hour rosters | 14,000 |
| Estimating/office: loaded budget | 4,000 |
| Lease/common charges | 4,000 |
| Base utilities | 1,400 |
| Insurance | 900 |
| Maintenance commitment | 1,500 |
| CAD/CAM/software | 600 |
| Marketing | 500 |
| Admin | 500 |
| Total selected fixed cash | 27,400 |
| Item | $ per unit |
|---|---|
| Net collected selling value | 1,800 |
| Metal including selected scrap allowance | 400 |
| Tool wear/cutting consumables | 150 |
| External finishing/heat service | 150 |
| Percentage-only fee allocation (1%) | 18 |
| Contribution before scheduled payroll/fixed OPEX | 1,082 |
The percentage fee is an aggregate allocation, with no fixed per-payment charge assumed. Unit contribution is not owner income: the full listed monthly roster and overhead still need coverage.
Capacity, break-even and a lower-sales case
A comparable job consumes six productive operator hours and eight usable spindle-hours. Operator time permits 40 jobs;300 spindle-hours permit 37 whole jobs. Plan 32. Unattended machining, setups, inspection and changeovers need a real sequence rather than adding both resource limits together.
For this fixed mix and commitment, whole-unit cash break-even is 26 completed standard jobs per month: ($27,400) ÷ $1,082, rounded up. The aggregate capacity is 37 units; it does not establish customer demand or a workable daily sequence.
| Paid units | Net sales $ | Selected result $ |
|---|---|---|
| 22 | 39,600 | -3,596 |
| 26 | 46,800 | 732 |
| 32 (planned) | 57,600 | 7,224 |
| 37 | 66,600 | 12,634 |
At 22 jobs the staffed premises and maintenance commitment remain. The retained guide's prototype/batch ranking is a separate resource-allocation case; do not import its unit price as this standard-job specification.
Practical KPI definitions
Track contribution per constrained spindle-hour, setup versus run hours, first-pass good output and quote-versus-actual metal/tool usage. A high invoice value alone cannot rank jobs when their constrained-hour requirements differ.
No depreciation, finance, income tax or machine replacement is counted in selected operating cash. Actual material deposits, inspection acceptance and receivables require a job cash calendar.
Method context: SBA business planning. All case prices, wages, cost ratios, reserve and capacity inputs above are original planning assumptions.
What the selected product covers
The official Small Batch Manufacturing Service Financial Model listing describes an editable five-year Excel model. Product launch month controls revenue timing, and produced units multiply annual prices. Shipments equal production in the stated configuration; no inventory bridge is included. Outputs include profit and loss, monthly and annual cash projections, break-even/return indicators and dashboard charts.
Use the actual routing before loading product volume
Our original repeat job earns $300 over 18.67 bottleneck hours; a different prototype earns $500 over 16. Ranking by total job revenue alone reverses that result, and both jobs together exceed the 22 available hours.
Use actual routings and accepted specifications before loading product volumes. Keep acceptance, work in progress and material cash reconciled with the produced-unit forecast. The Machine Shop planning guide develops the original worked case.
Planning guide