73. A Recipe for Winning High-Volume Work - Marvin Rodriguez of True Precision Machining

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What if understanding the true cost of every part you produce could be the key to scaling your machine shop? In this episode of Machine Shop Mastery, Paul Van Metre is joined by Marvin Rodriguez from True Precision Machining to explore the strategies that have driven the company’s remarkable growth. Marvin shares his journey from starting with little formal education to leading a high-performance machine shop that blends cutting-edge technology with a deeply rooted commitment to craftsmanship.

The conversation covers essential topics that all machine shop owners and managers should consider to scale their operations while ensuring quality and profitability. Marvin reveals how they use activity-based costing for accurate pricing, the importance of offering competitive yet fair quotes, and how to manage production shifts effectively.

One of the key highlights of this episode is Marvin’s discussion on how True Precision improved its profitability by understanding and adjusting their pricing models, not just for prototype work but also for high-volume production. He emphasizes the importance of paying attention to administrative and operational costs, which often get overlooked in traditional pricing models.

They also delve into building a sustainable work culture, from offering six-figure salaries to top employees to providing clear communication and growth paths for all staff members. This approach has allowed True Precision to maintain quality while attracting and retaining top talent.

Additionally, Marvin takes us through their innovative use of AI to streamline quoting and estimating processes, something that is transforming the way they handle administrative work. He talks about how automation and technology have enabled them to make smarter decisions, improve efficiency, and stay competitive in an ever-evolving manufacturing landscape.

Whether you run a small shop or are looking to grow a larger operation, this episode offers invaluable insights into optimizing processes, building strong relationships with customers, and ensuring that your business can thrive for years to come.

You will want to hear this episode if you are interested in…

(0:00) Introduction to Marvin Rodriguez and True Precision Machining
(2:48) Marvin’s journey into the machining industry and his experience in various shops
(4:50) True Precision’s evolution from 10 CNCs to 17 CNCs and 45 employees
(8:19) Activity-based costing and how it improves the company’s pricing structure
(10:52) Operational efficiency and the benefits of running multiple shifts
(15:02) How True Precision improved its customer relationships
(18:07) Strategies for managing R&D and prototype jobs while scaling production
(24:32) Converting customers from R&D to high-production orders
(27:05) Improving on-time delivery with ProShop ERP
(28:10) The challenges and rewards of adding multiple shifts
(33:04) Building a positive shop culture by recognizing and supporting employees
(37:04) The management metrics that True Precision prioritizes
(40:04) How True Precision approaches sales and marketing
(45:12) The importance of paying employees well and offering clear growth paths
(48:14) Key takeaways for shop owners looking to grow their business