From Excel Sheets to ACE: Our Journey

In the world of manufacturing, CNC machining stands as a testament to precision and efficiency. Yet, there's a silent battle that every manufacturer faces - the battle of costing. It's like trying to solve a Rubik's Cube blindfolded. You know the colors match up somewhere, but finding the right combination? That's where the real challenge lies. And that's exactly what we set out to conquer at Karkhana.io. So, buckle up as I take you through the journey of how we turned the chaos of CNC costing into a symphony of numbers with our Automated Costing Engine (ACE).

The Problem Statement

The journey of engineering component costing is akin to navigating through a maze with no map. It's a painstaking process filled with uncertainties and variables that can make or break a project. The time it consumes is colossal, often resulting in delayed decisions and missed opportunities.

But that's just the tip of the iceberg. The real challenge lies in the variability of costs from different suppliers. Factors such as geographical location, machinery, labor skills, and years of experience create a spectrum of prices that lack standardization.

In an industry where precision is paramount, this inconsistency in costing is more than just a hurdle; it's a significant bottleneck that hinders the progress of precision manufacturing.

The problem was same for us at karkhana.io whenever we received any new project for costing. Initial days were difficult where every other customer would be excited by our business model and share us the most difficult CAD file they have to try us out. Supplier side was even more difficult. They already had resistance about this model and on top of it sharing quotes for multiple projects without conversion was a tough thing to get done. From that point it was clear enough for us that we need to have a great command on costing done by us internally. And we set on a journey to start working towards it.

The Vision

As we started receiving more and more projects the vision was clear: revolutionize the way we approach costing in manufacturing, particularly CNC machining. The challenge was daunting, but the goal was worth every effort.

I didn't knew much about startups and startup stories back then but "Tu Beer Hai" from TVF Pitchers was more than enough motivation to embark into this journey of building and a lot more challenges surrounding it. I remember a bold vision i presented in one of our annual planning meets - The K.io Studio. You walk in with a component, scan it and get everything you need right up there in the big screen.

Journey

It all began with simple raw material cost calculators in Excel. Start with the simple bounding box of the file, try to fill in the raw material cost and then slowly move towards the simplest of manufacturing operations. The journey took me from the confines of our office to the bustling workshops of our suppliers, each visit bringing me closer to understanding the intricate details of costing. The quest for a solution led me through various avenues, from experimenting with online tools to diving deep into CAM and tooling intricacies.

Failures

The road was anything but smooth. We tasted success with 3D printing and sheet metal costing, thanks to their straightforward processes. However, CNC machining, with its complex parameters, proved to be a tough nut to crack. There were moments of frustration, times when the end seemed nowhere in sight. I also visited to one of the suppliers and spent a week there to understand how they go about the costing, made notes, tried to draw up their decision making process and a tons of apps related to speed and feed of machine tools.

But giving up was never an option. We started visiting suppliers and explained them about costing just based on CAD and PDF files through automation and they will always come up with a long list of why it cannot work. Their arguments were also fair enough considering the complexity and variations it had. But our CEO had a simple one liner - " It's math at the end of the day so why can't it be done ?" And the grind rebegins...

More Failures, and Give-ups

We started this activity of CNC costing multiple times now from many different approaches. Every new costing engineer at karkhana came up with their own sheet and own way of costing. Collating it all and having a standardized version was a difficult task. Everyone had an explanation of why they consider certain parameters and certain costs in their own way. With few parameters being standardized and a cost dB in place we rolled out an internal tool for costing on our ERP. We named it Build Cost.

It saw some initial traction, but then unable to read the intricacies of a CAD model it failed for most of the components. With our internal user feedback and with more iterations we came up with one more variant. This time we tried to better up the ui and add few more functionalities to it. We used Retool for it. But this attempt could not even make it to our internal teams monitors and we failed again.

The Build & The Team

In the midst of encountering multiple setbacks while working on a challenging project, I found inspiration in the pages of 'Amazon Unbound' by Brad Stone. The book's detailed account of the development of Alexa, initially code-named 'Project Doppler,' struck a chord with me. Learning about the relentless experimentation and the never-say-die attitude of Jeff Bezos and his team invigorated my resolve. I was so moved by their story that I decided to name our internal endeavor 'Project Doppler,' as a nod to the innovative spirit that turned a bold idea into a groundbreaking success. The product that emerged from this project was christened the Automated Costing Engine (ACE), which soon became a synonym for all the costing developments we undertook. The book's insights into the trials and triumphs of building Alexa served as a powerful reminder that perseverance and innovation are the keys to overcoming obstacles and achieving our goals.

In 2023, we rolled up our sleeves and got down to business. This time with a dedicated dream team of Ashok Kumar Sivakumar and Ravichandra Gupta, we hit the ground running.

Our journey started with a Google Sheet again – a bit more advanced this time. We ran multiple experiments, played around with ML models, chatted with a bunch of suppliers and costing wizards, and fine-tuned our creation to near perfection. With relentless perseverance and a whole lot of heart, we crafted our pride and joy: the Automated Costing Engine (ACE).

It was a team effort, with everyone giving it their all. The goal was to create a tool that would not only provide instant cost estimates but also offer detailed cost breakdowns and manufacturing recommendations, all with the simplicity of uploading a CAD file.

With this we again rolled out an internal version on streamlit, this time with much more advanced output with the minimal input from the user. It had some dependency on our local setup but it helped us enormously to display the capabilities that ACE can posses and get the crucial buy in for the path ahead.

Finally, Our ACE!

In February 2024, ACE was no longer just an idea; it was a reality - https://ace.kkonnect.io/.

A tool powered by AI and ML, capable of transforming the landscape of CNC machining costing. It was our answer to the industry's cry for a quick, effective, and reliable costing solution.

The Power of ACE

Quick one step file upload to unleash the magic of ACE!

Easy configuration to choose from a variety of materials, tweak the process from milling, turning to turn-mill operations, set the tolerances and the quantity. The cost updates instantaneously for any configuration. Inbuilt CAD viewer helps to navigate through the design quickly without switching software's or even tabs.

For everyone from beginner to experienced professionals, the manufacturing operations recommendations helps to quickly know what the design consists of without the need of inspecting each and every feature of the CAD.

Detailed costing report which not includes cost but a detailed numerical explanation on how we arrived at it. Remember, it is always math at the end of the day :p As time is what everyone related to while calculating the cost of CNC components, we have tried to make it available wherever possible. So everyone can add their hourly rate and arrive at the perfect cost. Just click on the "Download Costing report" and play around the numbers.

ACE is not just a tool; it's a testament to what can be achieved with determination and teamwork. It stands as a beacon of innovation, offering a glimpse into the future of manufacturing. The power of ACE lies in its ability to make costing accessible, understandable, and efficient for everyone involved in CNC machining and manufacturing at large.

The Road Ahead

This is just the beginning for ACE and the journey of revolutionizing CNC costing. We still have a long road ahead in terms of enhancing cost accuracy, accommodating even the most complex files, and providing robust validation for our cost estimations. Your participation and feedback are invaluable to us in this journey.

We're also excited to announce the launch of our ACE Supplier Program, where we'll collaborate with select suppliers to tailor ACE to their specific machining parameters and setup. If you're interested in being a part of this program and shaping the future of CNC costing, we'd love to hear from you. Together, let's build a tool that not only meets but exceeds our industry's needs.

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Reflections

Writing this article has been a trip down memory lane, a reminder of the challenges faced and the milestones achieved. It's a story of how a vision, coupled with perseverance, can lead to groundbreaking innovations like ACE. As we move forward, we remain committed to pushing the boundaries of what's possible in manufacturing. Here's to a future where costing is no longer a bottleneck but a catalyst for growth and efficiency.

None of this would have been possible without the dedication and hard work of our incredible team. A big shoutout to everyone who has contributed to making ACE a success: Ashok Kumar SivakumarRavichandra GuptaVENKATA SIDHARTHA KSarath Viswanathan MSumit BhagatTejas BhosaleKomal SinghAshwin AcharyaPradyumna NaikYogesh MaliShreyas ParabBhavana Acharya

Thank you.