Posts Tagged ‘mie solutions’

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.…

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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…

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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…

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Material Estimating

Material estimating can be simple to complex depending on the particular job you are estimating.   Raw material is a commodity which could include metal sheets, wood, bars, plastic, plates, block of metal, etc.  These items are purchased from a supplier and are usually priced at a per unit weight price. A few examples 1.…

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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,…

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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…

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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…

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Manufacturing Costs

Manufacturing costs consist of multiple elements which arrive at the full cost.  When estimating a product to be manufactured the entire costs are distributed between the following elements. Material Costs – This includes both raw materials, which is reshaped, formed, etc to produce the item and purchased prefabricated items, like nuts, bolts, screws.  The raw…

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Direct and Indirect Costs

Fixed and variable costs can now be broken down into two more cost types: direct and indirect costs. These classify the costs of parts being manufactured and are critical to calculating shop overhead rates.  Direct costs are those costs that are directly associated with the production of the product.  Indirect costs are those costs which…

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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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