Job Shop Quoting and Estimating

Founders Blog

David Ferguson | CEO and Founder of MIE Solutions

Estimating Engineer Tasks

By Dave Ferguson | Mar 26, 2015 | 0 Comments

The estimating process is just that, its an estimate or an educated guess.   Companies many times will add to the beginning of a quote a process step called Engineering.  Engineering can mean many things including CNC Programming Design Work Creating Solid Models Creating Prototypes During the estimating process it is key to include these…

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Estimating Shearing (Sheet Metal Cutting)

By Dave Ferguson | Jan 2, 2013 | 0 Comments

The basic definition of shearing is cutting metal into smaller pieces.  If we define shearing as cutting material then not only a shear can do this process but metal scissors, lasers, punch presses, etc can also do the same function.  The shearing that is discussed hear is a machine which cuts metal with a blade.…

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Job Estimating Software MIE QuoteIt Has New Features

By Dave Ferguson | Dec 24, 2012 | 1 Comment

Quoting and estimating software can be found in many products.  One of the industries that have the most estimating software packages is construction where you see a plethora of options available.  Job shop estimating software is also common but it is usually tied directly into the companies ERP/MRP system.  MIE QuoteIt from MIE Solutions has an…

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Analysis Of Overhead Expenses

By Dave Ferguson | Jul 13, 2012 | 0 Comments

Overhead expenses are all the costs not directly associated with the manufacturing of a specific product.  Raw material costs and direct labor are two examples which do not fall into the category of overhead expenses.  These costs are incurred by the manufacturer but cannot identified as part of the direct product costs. One of the…

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Job Cost Markup Rate

By Dave Ferguson | Jun 28, 2012 | 0 Comments

In my previous posts I have been discussing at length different types of costs including direct and indirect costs, direct and indirect material costs, direct and indirect labor costs and lastly burden.  The next point is Markup Rate which is the key to making money.   Markup is the amount of profit that is made…

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Job Shop Burden Expenses

By Dave Ferguson | Jun 27, 2012 | 0 Comments

Direct Burden Expenses The are expenses that are not included in direct labor costs and material costs and these would be direct burden expenses.  Direct costs are those costs directly involved in the manufacturing of a product.  All other direct expenditures can be classified as direct burden expenses.  These would include required fixtures, jigs,molds, etc…

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Classification Of Costs – Direct and Indirect Costs

By Dave Ferguson | Jun 26, 2012 | 1 Comment

Direct and indirect costs are two more costs which are involved in running a business.  Direct costs are those costs directly associated with the manufacturing or production of a product.  This includes labor that is directly related to making the product and purchased materials which are directly related to making the product. Engineering costs can…

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Classification Of Costs – Fixed and Variable Costs

By Dave Ferguson | Jun 14, 2012 | 0 Comments

There are many facets of costing and breaking costing into these four categories helps in understanding Fixed and Variable Costs Direct and Indirect Costs Costs are generally classified as to whether or not they vary with the quantity of parts being manufactured.  Many times this can be described as a Setup Cost because it does…

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Engineering Costs

By Dave Ferguson | Apr 27, 2011 | 0 Comments

Engineering costs for many years have basically been included in the standard burden rate of the shop.  There are many situations now in this world where manufacturing is very competitive and technical that the standard burden rate of the shop cannot include all the costs associated with the engineering costs. Direct Engineering Costs Direct engineering…

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Engineer To Order Material Costs

By Dave Ferguson | Apr 4, 2011 | 0 Comments

Now that we have been investigating many of the details of material costs in quotations, we will now take a look at the mathematical calculations required. Engineer To Order Material Costs Step 1)  Determine the quantity of parts required.   This is the number of parts required to make the end product.  In many situations…

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