Posts Tagged ‘cost estimating’

Estimating For Paint Lines (Part 1 of 2)

What is a paint line? Paint lines comprise equipment that cleans, dips, sprays paint, and ovens to dry the parts. Paint lines are very capital-intensive and often take up hundreds to thousands of square feet of space. They can be both wet paint or powder coat systems.     Why do we need a formula…

Read More

Estimating Shearing (Sheet Metal Cutting)

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.…

Read More

Analysis Of Overhead Expenses

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…

Read More

Engineering Costs

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…

Read More

Engineer To Order Material Costs

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…

Read More

Material In Cost Estimates Weight Calculation

Material costs in job estimates can come in a variety of ways.   When you are estimating the cost to manufacture a product and the product is made out of either plate material, sheets, tubing, etc there are a few calculation methods that may be required. Here is a list of 7 calculation methods which…

Read More

Material Weight

Material Weight In order to estimate the cost of material it is essential that you know the weight of different material gauges and types of material.   Below you will find a list of some common weights dealing with the metal industry and metal fabrication.  One of the key factors is knowing the weight factor…

Read More

Material Cost Calculation

Material cost calculation potentially involves a lot of information.  In my previous blog I mentioned many of the data points involved in the material cost calculation including Parts Size, Blank Size, Stock Size, Safety Stock Size, and others.  One of the reasons you need the part size is raw material is usually a commodity.  The commodity is usually priced in…

Read More

Raw Material Sheets Cost Calculation

Raw material sheets include plates, sheets, plywood and any other commodity item which is x,y and thickness dimensional.  Raw material is usually purchased by weight and is a commodity.  I’m going to define commodities as items where their price fluctuates constantly based on market forces.  Some commodities you have heard of is soybeans, wheat, oil,…

Read More

Material Cost

Material cost is a big subject and will be handled in multiple blog entries.  Material costs are costs that go directly into producing the desired product.  Material costs can be divided into both direct and indirect material costs.  We will focus on direct costs because they directly affect the product’s price. Material can also be…

Read More