Machine Shop 101

After a few days and weeks of working to get a permit and the warehouse set-up for 3 phase power, the local energy provider installed the meter today. We officially have power and are ready to get the engine lathes connected and begin the manufacturing process. 

Electrical wire

Problem: The engine lathes that were purchased are pre-wired to 440V (3 phase) and the shop currently has 220V (3 phase); to bridge the gap we will need to use transformers which 90% of the time are sold in the US as step-down from 480 to 240. 

(remote control Android phone with Windows Desktop)

On another note, I managed to get web hosting and email accounts through www.seekdotnet.com 

Today I learned that the engine lathes require specific watts.

The 18 - 1/2" x 54 Engine lathe it will use 5720 Watts - Machine #1.

The 24" x 96" Engine lathe requires 5940 Watts - Machine #2. 

From what I've been reading online, people recommend that if given the option to run them on 440V or 220 V, 440 is the most economical because it draws less amperage. If you have a 440V motor and you are thinking about converting it into a 220V motor, you will have to unwind the motor coils and change the gauge to convert it for 220V (save money and buy a transformer).

Formula used:  Where : W = Watts  V = Volts   I = Amps

Watts = Volts X Amps      Volts = Watts / Amps     Amps = Watts / Volts

Therefore:

Machine #1: 440V * 13A = 5720 Watts or 220V * 26A=5720 Watts

Machine #2: 440V * 13.5A = 5940 Watts or 220V * 27A =5940 Watts 

Another important thing to know about these machines is that they have what is called a three phase motor. Very important when looking for a warehouse because you can negotiate that in the lease so that the landowner works with you to accommodate the requirements for electricity to have the machines running. Most residential places and small warehouses do not come with 3 phase wiring - this is something that the local energy company can add to a building upon request at an additional cost. 

Wouldn't it be nice is money were to grow on trees? From my business classes, I often heard the professors say "cash is King," but never truly understood the reality of the situation. 

I have learned that money on hand gives you a competitive advantage when starting off. Also, being able to have other cash flows enables you to take risks with more cushion. Knowing that you are able to cover your fixed costs (monthly loan payments, warehouse lease, insurance, etc) - even before you have produced your first manufactured part - will give you the security and peace of mind that you will need to start placing your building blocks together. 

Some fixed costs are negotiable, for example: Insurance premium depends on your skills to bargain hunt with various providers.

Let's think about short term and long term fixed costs for a minute.

Loans  We can start with a standard personal bank loan. The loan amount is $20,000, for a term of 60 months (5 yr) with 9% interest rate. Your monthly payment will be of $415.17 (fixed cost for the term of the loan).  

Warehouse rent/lease The amount of the lease depends on several factors:

Location 

Building Size (usually measure in sq/ft)

Amenities (office space, dock, etc.)

Appearance, condition, and surrounding businesses

Standard 1500 sq/ft warehouse typically runs around $700 - $1000 per month (lease agreements are usually for a minimum of 1 year, and may go up to 3 years). Let's add this second figure to the fixed costs.

The purpose of this blog is to document piece by piece - the realization of one of my projects. "How to start your own machine shop."

Topics discussed will range from:

finances (ways to get cash on hand)

sourcing machines, tools, equipment.

and a steep learning curve of the machine shop

Other things that I will enter form time to time are: 

Lessons Learned

Tips and advice

costs