Posts Tagged ‘machining’

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…

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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…

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Direct Labor Costs

Direct labor costs are those costs which are performed during the production of some product.  The product can be any type of item from a machined part, computer and vehicle.  Labor is required to change a raw material into a product that may be sold or given away.  Direct labor is calculated by taking the…

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Fixed and Variable Costs

There are two main types of costs – fixed and variable.  If something is being manufactured, it consists of both fixed and variable costs.  Fixed costs are those that do not change based on a quantity.  This means the cost is fixed if you produce 1 or 1000 pieces.  Some of these costs would be…

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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…

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Job Shop Hours Defined

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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Calculating Cycle Time with Estimating Software

Calculating the entire operation costs depends on both setup and cycle time.   In order accurately estimate your costs to complete a job you must be as accurate as possible during the estimating process.   If you spend too much time estimating you will be burning a lot of cycles which costs money.   If…

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Price Quote Software Handles Inspection

Job shop estimating is not the most complex job in the job shop, but it does have a lot of little details which should be dealt with during the estimating process.   Inspection is a category of the cycle time which is not normally considered during the quoting process.    I mentioned earlier that the…

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