How to Read and Compare Heat Treat Quotes

One of the biggest challenges in looking for a commercial heat treater is deciphering and comparing quotes. Every heat treater structures their quotes differently, often using unique terminology and varying levels of detail. Unless you know what questions to ask, it’s next to impossible to determine which quote offers the best value and meets your specific needs. This guide is here to help you properly assess quotes, avoid common pitfalls, and prevent serious heat treating issues from impacting your ability to deliver parts. 

Understanding the Basics of Heat Treating Quotes

Generally speaking, every quote is going to outline the number of parts, material, process, and price. Beyond that, the details of a quote are displayed differently from heat treater to heat treater. Whether it’s clearly explained on the quote or not, these all factor into the final price:

• Case Depth: Effective vs. Total
• Spec work vs Hardness Target
• Loading, Lot Size, and Part Geometry
• Material Considerations
• Packaging and Shipping Costs
• Testing and Certification

The specifics of these may not be disclosed on all quotes you receive. You may also notice that different terminology and price models are used across heat treaters. All of this makes it difficult to compare quotes and find the best value for what you need. 

1. Case Depth: Effective vs. Total

Terminology Defined

• Effective Case Depth: The depth at which the required hardness is achieved.

• Total Case Depth: The total depth of material affected by the heat treatment process.

Impact on Cycle Time and Costs 

The distinction between effective and total case depth directly affects the time parts spend in the furnace. Effective case depth requires longer furnace times, increasing the cost, whereas a quote based on total case depth might seem cheaper but could result in insufficient treatment​ if you actually needed effective. 

Potential Misunderstandings and Their Consequences

Some vendors’ quotes don’t make it clear which type of case depth is factored into the price. For example, a quote might indicate a case depth of 0.001–0.002”, but may not specify whether it’s effective or total. Misinterpreting these specifications can lead to choosing a quote that doesn’t meet your needs, potentially compromising the quality of the final product. 

Clarifying what the quote includes is critical to mitigating risk. At Paulo, we make it as easy for you as possible by specifying effective (E) versus total (T) on every case hardening quote.

2. Analyzing Spec Work vs. Hardness Targets

Terminology Defined

• Spec Work: Specific requirements or industry standards that must be met.
  
• Hardness Target: The desired hardness range for the treated parts. 

Differences in Processing Methods Affecting Final Cost 

Let’s say you have two quotes, each with a different hardness target—one is 58-60 HRC and the other is 56-60 HRC. This narrower range could require more furnace time and additional tempers, both of which increase cost. In contrast, the broader target of 56-60 HRC could provide the heat treater with more flexibility and potentially less furnace time, reducing cost.

It’s also essential to confirm whether or not a quote adheres to the required industry standards or specific hardness targets you require. Some quotes may disclaim certain aspects of a spec requirement, while others may follow the spec completely. A common example of this is when AMS specs are called out but the quote only adheres to the hardness range for that spec. In this example, there are important elements of the specification that may be left out, elements that are crucial to achieving your part requirements. For this reason, if you choose to go with a quote that only calls out hardness, you will not be able to certify to the AMS specification, making the parts unusable if that’s the certification you need. 

3. Loading, Lot Size, and Part Geometry

How Part Shape and Size Influence the Heat Treatment Process

The shape, size, and weight of the parts significantly influence the heat treatment process. Some parts are able to be “batched,” or heat treated in bulk with other parts (this is essentially shared furnace time), which can lower your costs compared to running a dedicated cycle for your parts alone​.

On the other hand, large parts or components with complex geometries may require more careful handling and a dedicated cycle, which increases costs. Every heat treater has a different process for determining how your parts will be heat treated, so it’s important to clarify this during the quoting process. 

Lot Size Variability 

Lot size also impacts price, along with lead time. Larger batches can reduce the overall cost per part by maximizing furnace usage and minimizing labor and idle time. However, smaller lot sizes are sometimes required for traceability and containment. It all boils down to time it takes to process your parts. For example, 20,000lbs divided into 4 lots would take longer (and cost more) than 20,000lbs divided into 2 lots. Working with a heat treater to maximize your lot size is a great way to lower your cost. 

A common question we get is, “can I get a volume discount?” The best way to reduce cost is to think lot size rather than total volume. Lot size allows your heat treater to find greater efficiencies and will likely reduce the cost for you. 

4. Material Considerations

Material type can impact both treatment feasibility and price. Some materials may require longer or more complex heat treatments to bring the part into spec. Discussing potential material substitutions with your heat treater can also lead to cost savings. For example, switching from a rare material to a more common one could allow your parts to be processed alongside others in a batch cycle, reducing overall cycle costs​​.

5. Packaging and Shipping Costs

Inbound and Outbound Packaging

The way parts are packaged (and who’s doing the packing) can significantly impact the overall cost of heat treatment, particularly if special handling is required. If you receive a quote with packaging fees, it’s worth asking about options to reduce cost. Maybe counts per container aren’t as critical — this is an example where an unnecessary labor cost can be taken out of the equation. 

Understanding Surcharges and Hidden Costs in Shipping

It’s common for some suppliers to not include shipping in the originally quoted amount. If shipping is not explicitly listed on your quote, it may seem like you’re getting a better deal but expect additional shipping surcharges to be tacked onto the bill. Sometimes, managing your own shipping logistics can be more cost-effective. 

6. Testing and Certification

Testing Practices to Watch Out For

There are some scenarios that will always require testing—a primary example is when a spec requires it. Airplane components, for example, require that a certain number of components from each batch be tested. It’s also good practice to conduct tests to verify a process during the first run, sometimes called a First Article or PPAP. Depending on the heat treater, the first run of parts may or may not be included in the quoted amount.

However, there are cases where some heat treaters go above and beyond the necessary testing, which is a red flag to look out for. This usually indicates a process that doesn’t produce consistent results or isn’t as tightly controlled as other heat treaters. You may get a quote that indicates parts get pulled for testing every 15 minutes throughout heat treatment, whereas others may only test at the beginning and end of the line. The more tightly controlled the process is, the more consistent the results (and the less testing you have to do) — all of which drives down cost. 

At Paulo, we believe that processes should be built in a way that ensures quality, rather than having to rely on quality checks. We’ve advanced our equipment and processes to be among the most accurate and reliable in the world. For every part we treat, we collect cycle data that proves the exact temperature, conditions, and length of time each part was treated. With this data, we’re able to prove parts are in spec and minimize the frequency of testing.

Certification & Approvals

Requiring certifications or approvals for your parts will inevitably increase the cost of heat treating. Obtaining NADCAP certification for heat treating processes requires passing regular audits, more stringent parameters, and more quality checks. All of this comes with an added cost and quotes that do not include certification costs might seem lower upfront but could incur additional fees later.

7. Comparing Different Pricing Methods

Piece Price vs. Pound Price vs. Cycle Charge

Different pricing models can sometimes be misleading because they aren’t apples to apples comparison. Understanding how suppliers are pricing your order and what the total cost will be is the best way to compare cost and find a better value. At Paulo, we use different pricing methods depending on the scenario. 

• Piece Price: We typically use this pricing method when each part needs to be treated individually or has specific traceability requirements. 

• Pound Price: This is commonly used for bulk orders, especially when treating larger quantities of parts like fasteners or general parts that can be processed in a batch. If you don’t know the exact weight of your parts, we’ll work with you to calculate an estimated weight to give you an accurate estimate. 

• Cycle Charge: This method applies when an entire furnace cycle is dedicated to a single order. A cycle charge is for the furnace’s full operation time, and we load as many of your parts as possible into that cycle. When comparing quotes that use cycle charge pricing, it’s critical to ask for an estimated number of parts that will fit into your cycle in order to properly assess and compare quotes from different heat treaters. 

Quotes that use piece price or pound price can be hard to compare at first glance. Here’s an example of what to watch out for. Notice how the pound price seems more expensive at first, but the total cost is actually cheaper than the piece price. 

Minimum Charges

All heat treaters have minimums and everyone is priced a little differently. Understanding what the minimums are for each process you need is essential for accurate cost comparison. 

Always Ask Clarifying Questions

Asking questions and understanding how a quote was formulated is key to understanding how a quote compares to others. It’s also a way to make sure the quote is accurate. When a supplier responds to your RFQ, they might make assumptions about your parts or heat treating needs in order to get you a price—these assumptions are sometimes wrong. Asking deeper questions about how they arrived at a given price can help uncover some of these assumptions, give an opportunity for clarification or adjustment, and ultimately lead to a more accurate price estimate.

Understanding what’s included in heat treat quotes is critical to making a sound decision. By following the guidelines in this article, you’ll be better equipped to compare quotes, ensuring you receive the best value without compromising on quality. If you have any questions about a quote you received from Paulo, don’t hesitate to reach out to the team member who prepared the quote for you.