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Job Costing and Estimating Presented NOVEMBER 2015

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Quote Consistency Where can quote consistency come from? People or Software?

Both!

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Money

OR

Time

Quoting

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What about FACTS?

Part Size Part Thickness Material Type Number of Pierces Speed of Cut Number of Countersinks Chamfer Inches

Number of Setups Number of Tool Changes Total Inches of Weld Total Inches of Grinding Number of Weld Starts Number of Parts in a Jig Number of Parts not in a

Jig

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Operational Formulas

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Part - Gusset

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Quote Part

________ ________ ________ ________

________ ________ ________ ________

• Linear Inches of Cut

• Speed Of Cut• Number of

Pierces• Pierce Time

• Number of Bends

• Number of Flips• Part Size• Helper Required

Labor

• Laser Setup ________ • Press Brake Setup ________

Lase

rPr

ess B

rake

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Quote Part

________ ________ ________

Nesting?Sheets Common Material vs.

Amortization

Material Cost

• Sheet Cost• Parts Per Sheet• Part Size

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Quote Part

• Anodizing Cost

Lot PricingOther Parts Sharing the

CostTime Frame / Expedite

Outside Process

________

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Where does all this information go?

((Linear Inches of Cut/Speed of Cut)+(Number of Pierces*Pierce Time)/60)* $ +

((Number of Bends + Number of Flips + 1) * ((if(Length>14.9, (Length * 0.0005555) + 0.1086675, 0.1169) + (If(Helper=1, 0.025,0)))* +Outside Process Cost/Quantity +

(Setup Time/Quantity)* +

=Per Part $Sheet Cost/Parts per Sheet

$

$

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Shop Rates

Employee Wages (Direct Labor) Overhead

Variable Fixed

Profit

Do You Know What Your Rates Made Of?

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Overhead Direct Labor Profit

Sell Rate

Direct Labor

Shop RatesDo You Know What Your Rates Made Of?

= SHOP RATE

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Shop RatesOverhead

• Variable• Directly Associated to Production (More Production = More Cost)• EX: Gases, Utilities, Machining Tools

• Fixed• Associated to Production but (More Production ≠ More Cost)• EX: Equipment Leases, Rent, Depreciation

• Operating Overhead• Marketing & Sales, Administrative Salaries, R&D

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Overhead Direct Labor Profit

Shop RatesDo You Know What Your Rates Made Of?

$Material$ $

Buy Sell

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What WAS the Cost?

Direct Labor

MaterialHardware

Outside Process

Overhead

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Cost Accumulation

•Methods– Barcoding– Kiosk– Tablets– Manual Entry

•Methods– Barcoding– Kiosk– Tablets– Manual Entry– Backflushing

• Labor– Collection – Tracking– Scheduling / Capacity

Planning

•Bill of Materials– Costing– Inventory Control

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How Should I Compare?

Job Costs

Profit ?

Shop Rate

+

Where’s the Profit?

Material

Job Estimate

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What Should I Compare?

Profit ? +

Direct Labor

Ma-terialHardware

Out-side

Process

Overhead

Overhead Direct Labor Profit

OutsideProcess Hardware Material

Job Cost Job Estimate

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Job Costing

When Should You Analyze a Job? Who Should Analyze the Job? Can I Start Performing Job Cost Analysis

Tomorrow? What Should I be Looking For?

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Job Costing

Company Level Reporting Department Level Trending Work Center Level Trending Employee Specific Reporting Part Type Trending Part Specific Trending

What Can I Do With It?

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Come See us! Booth S2256We would be happy to answer any questions you may have!