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The Operating Review › Industries › Aerospace and defense › Build-to-print machining and fabrication

Aerospace and defense — Build-to-print machining and fabrication

Quoted from standards that drift, on parts whose revisions change without the price being revisited.

Build-to-print is a business run on other people's drawings. You do not own the design, so you cannot engineer your way out of a bad price. The only variables you control are the process, the material and the paperwork — and all three were priced once, at quote, often years before the last shipment against that order.

These are the terms the review uses with you. A page written for an aerospace and defense manufacturer generally would not contain any of them.

Where it concentrates here

Specific to build-to-print machining and fabrication, not to an aerospace and defense manufacturer generally. Each is concentrated — a single agreement, a single code, a single account nobody reviews — which is why a sample of the operation tends to miss it and a full pass tends to find it. They are not findings from a named engagement.

  1. Long-term agreements with fixed prices and no material escalator, signed when the alloy cost something else, still releasing against a schedule the customer sets.
  2. Drawing revisions arriving under the same part number at the same price, adding an operation, a tolerance or an inspection that nobody re-quoted.
  3. Special processes — heat treat, plating, NDT, finishing — subcontracted to accredited suppliers whose increases pass through to you rather than through you.
  4. Set-up absorbed on releases far smaller than the lot size the part was quoted at, so a part loses money every time it runs and the annual total never shows it.
  5. Tooling and fixtures amortized over a quantity that was forecast rather than ordered, with the unrecovered balance sitting in inventory as though it were an asset.

Where this data actually lives

Named because it changes what the intake asks for. An extract from one of these has known gaps, and the review is built around them rather than surprised by them.

See the proposal and the price Talk it through first

The proposal is written for an aerospace and defense manufacturer as a whole — the sequence, what we would need from you, and what it costs for your number of operating units. What is on this page is what we would additionally expect to find in build-to-print machining and fabrication.

The rest of the sector