What?
In a CNC machine shop, quoting for a job refers to the process of estimating the cost of producing a specific product or component. This process involves calculating the costs of materials, labor, overhead, and any additional expenses associated with the production of the item. The quote serves as a tool for determining the feasibility of a job, as well as a basis for negotiation with the customer.
The quote provides the customer with information about the cost of the product, the lead time for production, and any other relevant details. It can also help the machine shop determine the appropriate pricing strategy based on production costs, market conditions, and competition. Additionally, the quote can be used as a reference when invoicing the customer or tracking production costs. The goal of quoting for a job in a CNC machine shop is to provide a reliable estimate of production costs, enabling the machine shop to make informed decisions and 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 against expected performance and to base new jobs off similar parts, taking into account size, material, and which machine type they would run on.
How?
To provide a quote for a job in a CNC machine shop based on past cycle times of similar parts, follow these steps:
- 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 your production records on your ERP system, or by analyzing past jobs on Amper if Tallysheets was utilized.
- Calculate average cycle time: 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. If your team is tracking Part Numbers in Amper, average cycle times can be found on the Dashboard - Part Performance Page.
- Estimate production costs: Use the average cycle time and any other relevant information to estimate the production costs for the new job. This should include the cost of materials, labor, overhead, and any additional expenses.
- Assess the impact of any changes: Consider any differences between the new job and the past jobs, such as changes in production volume, material specifications, or process requirements, and assess the impact these changes may have on the production cycle time and costs.
- Review the quote: Ensure that the quote is accurate and complete. Check that all costs have been included and that the quote reflects any changes or modifications to the production process that have been made.
- Adjust the quote: Based on your review, make any necessary adjustments to ensure that the quote accurately reflects the cost of production.
- Provide the quote: Provide the quote to the customer, along with any relevant information, such as lead time, delivery date, and payment terms.
In summary, quoting for a job in a CNC machine shop based on past cycle times of similar parts requires the analysis of historical data, an understanding of the production process, and an accurate estimation of the costs associated with the job. By following these steps, you can produce a reliable quote that will help you make informed decisions and maximize your profitability.