Posts Tagged ‘costing’

Estimating For Paint Lines (Part 2 of 2)

As technology has improved over the years, paint lines have become more commonplace throughout job shops. The ability to estimate how much a part costs is now more complicated due to the batch process and automation of paint lines. This entry will show you a sample formula for estimating “time per part”. Variables FeetPerMinute VerticalParts…

Read More

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

Punch Press Estimating and the First CNC Punch Press

Punch press estimating is a very common way to put wholes in sheet metal parts. Punch presses have been around since 1955.  The Wiedemann Machine Company was established in Philadelphia, Pennsylvania in 1916 and over the years developed and produced a variety of machines. Wiedemann unveiled the world’s first NC turret punch press at a machine…

Read More

Job Cost Markup Rate

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…

Read More

Job Shop Burden Expenses

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…

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

Indirect Material Costs

Indirect material costs are those that are not directly added into the product. There are many times where materials are required to manufacture a part but are not put directly into the product.  Examples of this may include oils, lubricants for machines, sandpaper, molds, and castings. There are some situations where the molds and castings…

Read More

Job Costing Software

Job Costing has been around for many years to determine the cost of manufacturing a given product.  The process by which the expenses are record is costing.  Job costing software should make the process of recording the transaction simpler and not more difficult and time consuming.  Job costing software is not like cost accounting because it does…

Read More

Purpose of Cost Estimating

There are numerous purposes behind cost estimating, including the following: 1. A manufacturer can determine if the project or product is cost-effective to the manufacturer prior to the manufacturing process. 2. There are various alternatives to manufacturing and cost estimating can determine the economic feasibility of manufacturing the project or product by different methods 3.…

Read More

Estimating the Costs of Estimates

An interesting situation when creating estimates is determining which estimates to spend time on and which estimates are too costly to put the effort into.  In a tough economy, your company takes on jobs that don’t lead to a reasonable profit, but you will do almost anything to keep your machines busy.  This is a…

Read More