Estimating – Made To Order Manufacturing

David FergusonPresident

MIE Solutions

Overview

• We are going to investigate the estimating process in a made to order manufacturing environment

• Request For Quote (RFQ) Management• Material Estimating• Operation Estimating• Large Assemblies• Competition

What Is Estimating?

Estimating is the process to determine a price for goods and services you provide. Elements of an Estimate are as follows

• Labor• Materials• Sub Contractors• Profit

What Is Made To Order Manufacturing?

Jobs Shops• Made To Order• Engineer To Order• Contract Manufacturing• Product Line• Configuration Orders• Hybrid

Contract Manufacturing Market Drivers

Market Consolidation

Increasing Competition Locally and

Internationally

Intensifying Competition

Due to the intensifying competition in the contract manufacturing market, the abilities to drive operational efficiencies and better customer/supplier relationship management will help companies to stay competitive

Better Buyer/Supplier Relationship Management

Intensifying Competition

Improving Operational Efficiencies

Who Are You?

Prior to receiving a purchase order the buyer needs to know you exist!

Create A Website

• You must have a good web presence so potential clients can find you.

• Submit your website to the major search engines, .i.e. Google, Yahoo, Bing

• Submit your website to the industrial directories on the internet.

How To Get RFQ’s

Sales in the age of the internet has changed drastically which opens up many more ways to acquire potential accounts

Lead Generation

• Telemarketing• Industrial Directories• Silent Auctions, Standard Auctions, Reverse Auctions• Google Adwords• Existing Buyers

Telemarketing

Industrial Directories

There are many industrial directories on the web including

http://www.thomasnet.comhttp://www.globalspec.com

http://www.mie-exchange.com/idir

Auctions

Existing Buyers

Existing relationships is one of the most affective ways to get new work.

Organizing RFQ’s

Ways to organize• Request For Quote Log• Prioritizing Request For Quotes• Capture Rates

Prioritize

Prioritize Request For Quotes

Capture Rates

Request For Quote Log

Operations

What is Setup Time?

What is Setup Time?

What is Cycle Time?

Shop Rates

• What is Overhead Absorption?– Income Sheet– How To?

• What is your Sell Rate?

Income Sheet

What is Overhead Absorption

What is Sell Rate

Operations

• Departments• Work Centers• Operations• Guessing with a Dartboard• Real Life Example

What is a Department?

What is a Work Center

What is an Operation

Dartboard

Example

Conclusion

• List 3 or 4 bullet points to review the goals/objectives covered– “Let’s take a minute to review the

take-away points of this presentation.”

Questions?

Thanks

Thank you!

David Ferguson / MIE Solutions

dave@mie-solutions.com(714) 786-6230