The verdict in three sentences
In a precision machine shop, quotes are built on theoretical times, yet nobody measures the actual time spent per work order. Tablet time tracking at each station, tied to an automatic cost per job calculation, usually reveals 3 to 6 margin points lost on underpriced part numbers. For 25 employees, a production ERP at EUR 150-400 a month is enough if your processes are standard; a custom application at EUR 20,000 to 50,000 excl. tax wins when shop flow is specific.
The problem: an overall margin, no margin per part
A Toronto-area shop serving aerospace, medical devices or automotive suppliers knows its revenue and annual margin. It does not know which part makes money and which one costs money. The causes are always the same: setups longer than planned on short runs, untracked rework, CAM programming time never charged, material bought above the quote baseline.
The owner discovers the gap at year end, when it is too late to renegotiate prices with the customer.
| Cost item | Quote baseline | Measured actual (example) | Gap |
|---|---|---|---|
| Machine setup (batch of 50) | 1 h 30 | 2 h 40 | +78 % |
| Unit machining | 6 min | 7 min 10 s | +19 % |
| CAM programming | Not counted | 3 h per new part number | Hidden cost |
| Dimensional inspection | 1 min per part | 2 min 30 s | +150 % |
| Rework and scrap | 0 % | 4 % of parts | Lost margin |
| Material (7075 aluminium) | Start-of-year price | +9 % during the year | Gap not passed on |
Production ERP or custom application: the 2026 comparison
Two families of solutions exist. Production ERPs for small manufacturers cover quotes, work orders, inventory and invoicing on subscription. A custom application focuses on what makes the shop specific and connects to existing accounting and quoting software.
| Criterion | SaaS production ERP | Custom application |
|---|---|---|
| Entry cost | EUR 3,000 to 10,000 configuration | EUR 20,000 to 50,000 excl. tax |
| Recurring cost | EUR 150 to 400 per month | EUR 250 to 600 per month (hosting, maintenance) |
| Time to go live | 2 to 4 months | 3 to 5 months |
| Shop floor tablet tracking | Often optional, generic interface | Built for your stations, 2 taps per operation |
| Cost per work order | Standard, little detail | Configured on your machine hourly rates |
| Fit for outside processing (heat treat, grinding) | Limited | Full |
| Code ownership | No | Yes |
| 5-year cost (25 employees) | EUR 12,000 to 34,000 | EUR 35,000 to 86,000 |
The rule of thumb: if the shop runs repeat production with stable routings, an ERP is enough. If it does prototypes, short runs and a lot of outside processing, the custom app pays back faster because it measures what the ERP ignores.
What a job tracking application includes
The typical scope of a EUR 30,000 project: work orders launched from the accepted quote, routing per station, start and stop tracking on rugged tablets (about EUR 350 per station), scrap entry with reason codes, outside processing tracking, automatic cost per job with quote versus actual comparison, and a machine load dashboard. One tablet per cell of 3 machines is enough in most shops.
Mini case study
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Mark, owner of a 25-employee precision machine shop in Toronto, generates EUR 3.2 million in revenue with a 22 % gross margin. He invests EUR 34,000 excl. tax in a custom application, plus 6 tablets at EUR 350 and EUR 4,800 annual maintenance. After 4 months of tracking, he finds 14 part numbers sold below actual cost and setup time underestimated by 70 % on short runs. By revising prices and routings, he recovers 4 margin points: EUR 128,000 a year. Payback: about 4 months.
FAQ
Will operators accept time tracking?
Yes, if entry takes under 10 seconds and the goal is explained: reliable quotes, not surveillance. Shops that involve team leads reach 95 % of operations tracked within 6 weeks.
Can machines be connected directly?
Yes, status feeds from recent CNC controls (MTConnect, OPC UA) cost EUR 1,500 to 4,000 per machine. This comes in phase 2, after manual tracking.
Do we need to replace our quoting software?
No. The application pulls accepted quotes and sends actuals back to improve future estimates.
Which machine hourly rate should we use?
The calculation includes depreciation, energy, tooling and labour: between EUR 45 and 120 per hour depending on the machining centre type in 2026.
Are there grants?
Several regional and federal programmes fund digital manufacturing projects in part. Amounts vary; check with your local business development agency.
Let's scope your project. Job tracking application with tablet time capture and cost per part, EUR 20,000 to 50,000 excl. tax, delivered in 3 to 5 months. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
