The costs of forging enterprise are divided into raw materials, fuel and power, wages and surcharges, waste loss, workshop expenses and management fees.  

1.Raw materials:  The steel consumed in forging the forgings (excluding the value of recyclable waste such as burrs, leashes, stock, etc.).  This part accounts for 50%-70% of the total cost, different steel prices are different, carbon steel prices are lower, alloy steel is higher.  

2.Fuel and power: refers to purchased and homemade fuel and power (electricity, steam, compressed air, etc.) directly used in forging, processing and production of forgings.  Free forging large parts are mainly gas, and die forging is mainly electric heating, so frequent switching of the gas furnace should be avoided in production to make full use of the furnace temperature, because the furnace will have a lot of loss from the cooling state to the required temperature.  Eliminate high energy consumption and low efficiency production equipment, such as old friction press, steam hammer.  

3.Moulds: refers to the moulds directly used to produce forgings.  Accounting for 5%-20% of the total cost, the cost will vary depending on the batch size.  Choose the mold with the right material, arrange the production order according to the scientific production batch, try to avoid frequent replacement of the mold or choose inappropriate mold and process, resulting in increased mold loss.  

4.Wages and surcharges of production workers: refers to the wages and surcharges of workers who directly participate in the production of forgings.  Generally accounted for more than 10%  

5. Waste loss: refers to the loss caused by waste products produced in production.  Accounts for about 1-5%.  This figure mainly depends on the utilization rate of forgings and parts, both of which are related to the forging process.  In general, cold forging is the highest, die forging is medium and free forging is the lowest.