What?
In a factory, quoting for a job involves estimating the cost of producing a specific product or component. This includes calculating costs for materials, labor, overhead, and any additional expenses. The quote helps determine job feasibility and serves as a basis for negotiation with the customer. It provides the customer with cost details, lead times, and other relevant information, helping the machine shop price appropriately based on production costs to maximize profitability.
Time Commitment: Low
Features Required: Tally Sheets (Parts and Work Orders)
Notes: The Part Performance dashboard captures the Overall Equipment Effectiveness (OEE) and all available data for each part number. Use it to benchmark expected performance and to base new jobs off similar parts, considering size, material, and machine type.
How?
- Gather data: Collect data on the production cycle times of similar parts that have been produced in the past. This data can be obtained from analyzing past jobs in Amper in the
Target Tracker or Part Performance dashboards. - Amper can collect data through Copilot Beta Release or through
ERP Integration - Find the REAL cycle times: Analyze the data and calculate the average cycle time for producing similar parts. This will give you a baseline for estimating the cycle time for the new job.
- Quote new jobs optimally
- Estimate Production Costs: Use the average cycle time and other relevant information to estimate production costs, including materials, labor, overhead, and additional expenses.
- Assess Changes: Consider differences between the new and past jobs, such as production volume, material specifications, or process requirements, and assess their impact on cycle time and costs.
- Review, adjust, and provide the quote to the customer.
- Update the ERP standards for repeat parts
- Review data over multiple runs.
- Update ERP and assess profit margins to determine if the product cost needs to change for the customer.
- Communicate any cost changes to boost profit margins.