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

1. Raw materials; Refers to the steel consumed to form the forging body (after deducting recyclables such as the value of rough edges, leather, and other materials). This part accounts for 50%-70% of the total cost. Different steel types have different prices. Carbon steel is lower and alloy steel is higher.

2. Fuel and power: refers to the purchased and self-made fuel and power (electricity, steam, compressed air, etc.) directly used in forging processing and forging production. Free forging, large components mainly gas, die forging mainly electric heating, so the production should avoid frequent switch gas furnace, make full use of the furnace temperature, the furnace from cooling heating to the required temperature will have a lot of loss. Eliminate high energy consumption and low efficiency production equipment, such as old friction press, steam hammer.

3.Molds: refer to all kinds of molds directly used for the production of forgings. Accounting for 5%-20% of the total, the cost will vary depending on the batch size. The hot end is lower and the warm forging is higher. Choose the right material of the mold, according to the scientific arrangement of production batch production order, as far as possible to avoid frequent change of mold or choose inappropriate mold and process, resulting in increased mold loss.

4.Wages and surcharges of production workers: refer to the wages of workers directly involved in forging production and the surcharges of wages drawn in a prescribed proportion. Generally 2% to 8% (overseas average above 10%)

5. Waste loss: refers to the loss of waste products produced during production. Accounted for about 1-5%, utilization rate of the data mainly depends on the utilization and forging parts, the former decided the material loss and waste (head, punching core material, burrs, etc.), loss, damage, loss, which reflect the forging piece, margin losses, both tuan yu forging process, overall highest temperature cold forging and die forging of medium, free forging a minimum.

6. Management fees and others: refers to the expenses incurred in managing and organizing full-length production. A pro rata share of the cost will be applied to the forging shop of the all-purpose plant. Accounts for about 10-15%. The improvement aspect may establish the complete file management computer database, will design the department to accumulate the information to sort out centralized to use.