Posts Tagged ‘mrp’

Job Estimating Software MIE QuoteIt Has New Features

Quoting and estimating software can be found in many products.  One of the industries that have the most estimating software packages is construction where you see a plethora of options available.  Job shop estimating software is also common but it is usually tied directly into the companies ERP/MRP system.  MIE QuoteIt from MIE Solutions has an…

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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…

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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…

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Profit Improvement and Cost Reduction Part 1

Talking about profit improvement and cost reduction we cannot leave out the importance of estimating accurately.  There are a few ways to reach the goal of both profit improvement and cost reduction. Increase your prices which improves profit, but only if that does not drive away customers. Increase sales if your fixed costs stay the…

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Estimating is more than Setup and Run Time Part 2

In the not to distant past many manufacturing processes were very labor intensive.  In countries such as China and India there is still a great deal of manual labor intensive manufacturing.  I remember as a child I worked in my Father’s sheet metal shop and the machine of choice was a Strippit 30/30.  I have…

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Exploded Bill Of Materials

Estimating large projects requires an exploded bill of materials in order to get a good understanding of the requirements.   The larger the project you have to estimate the more in depth the bill of materials will be.   If you are estimating you want to make sure all the bills of materials are entered…

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Cost Estimating Purchased Parts Or Materials

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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Calculating Shop Rates Using The Income Statement

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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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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