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What Are Bill Of Materials?

By Dave Ferguson | Dec 13, 2009 | 0 Comments

A good definition of Bill of materials comes from wikipedia Bill of materials (BOM) is a list of the raw materials, sub-assemblies, intermediate assemblies, sub-components, components, parts and the quantities of each needed to manufacture an end item or final product. All products have bill of material from engineering bill of materials, manufacturing bill of…

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Cost Estimating Purchased Parts Or Materials

By Dave Ferguson | Dec 9, 2009 | 0 Comments

Bill of material items are those items which are purchased as raw materials and used to combine with other products and services to produce a new product.   Job costing bill of materials is a critical step in the estimating and quoting process.  Classic ERP and MRP software provides tools to help estimating the bill…

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Manufacturing Efficiency in Estimating

By Dave Ferguson | Nov 10, 2009 | 0 Comments

How many of you have estimated a job and wonder how anyone could do it any cheaper and make money?  Well your not alone in your thinking.   There are manufacturers that are using reverse auctions in order to try to get more work and pick up new customers.   The problem is when you…

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Job Shop Hours Defined

By Dave Ferguson | Oct 15, 2009 | 0 Comments

In job shop estimating where does efficiency play a role?  When you are estimating generally ask yourself how many “Man Hours” are required to producing the part or performing a specific operation. Lets define some terms first Man Hours Man hours is the total time to accomplish a given task.   This does not mean…

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Fabrication Workcenter Overhead Rates

By Dave Ferguson | Sep 18, 2009 | 0 Comments

When you quote a job and its operations you need to make sure you quote it accurately. Its very important to know that when you quote a job that your rates are high enough to actually turn a profit. [polldaddy poll=2007715] Welcome to the MIE Solutions Job Shop Estimating blog. Fabrication software as in sheet…

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Machine Shop Rates Part 2

By Dave Ferguson | Sep 2, 2009 | 0 Comments

Welcome to the MIE Solutions Job Shop Estimating  blog.   Fabrication software as in sheet metal software and manufacturing software deals with shop rates extensively for costing. There are basically 3 ways to calculate overhead absorption rates which is used to provide your shop sell rate during quoting and estimating. Company Overhead Absorption Rate Percentage…

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Machine Shop Rates Part 1

By Dave Ferguson | Aug 24, 2009 | 0 Comments

Welcome to the MIE Solutions Job Shop Estimating  blog. MIE Solutions ERP system provides a comprehensive job shop software to deal with the many problems issues a job shop encounters.  Estimating has become a critical factor in many job shops in order to determine the best price for custom and made to order manufactured parts.…

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Standard Shop Rate

By Dave Ferguson | Aug 11, 2009 | 0 Comments

Do you remember when it was time to quote and you sat down with your specifications, pencil and paper and started to write down how long each processes would take to manufacture the given specifications.   You would add up all the setup time, then go through and add up all the cycle time per…

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Calculating Shop Rates Using The Income Statement

By Dave Ferguson | Aug 1, 2009 | 0 Comments

We are going to spend the next few posts reviewing what an income sheet is and how the income sheet will help you determine you shop rates. From Wikipedia the definition of income statement is Income statement, also called profit and loss statement (P&L) and Statement of Operations, is a company’s financial statement that indicates how the revenue…

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Introduction To Shop Rates

By Dave Ferguson | Jul 21, 2009 | 0 Comments

Labor used to produce products and services purchased by customers. These man-hours are directly attributable to customer activity. Lab A few years ago before computers, excel spreadsheets and calculators most organization used a standard shop rate for any labor that was occuring during a process.   Now that computers can easily calculate figures organizations have…

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