• April 17, 2021
  • Register
  • Sign in
    • Forgot Password ?
    OR
    • Sign in
  • FAQ
  • Contact
  • About us
www.cnctimes.com logo
  • Editorials
    • NEWS
    • CASE STUDIES
    • INTERVIEWS
    • SUCCESS STORY
    • PRODUCT SHOWCASE
    • TECHNICAL ARTICLES
    • BLOGS
    • VIDEOS
    • NEWSLETTERS
  • Forum
  • EVENTS
  • INVENTORY
    • INVENTORY LISTINGS
    • AUCTION LISTINGS
    • WANTED LISTINGS
  • BUSINESS LEADS
    • BUYERS
    • MANUFACTURERS
    • DEALERS
  • SHOWROOM
  • JOBS
  • Register
  • Sign in
  • Contact
  • Advertise
  • Feedback

Information

Please login to give the feedback.

Information

Please login to give the feedback.

  1. Home
  2. Technical Articles
  3. Use of Costing and Quoting in the Metal Fabrication Industry

Use of Costing and Quoting in the Metal Fabrication Industry

05 October, 2020
  • Tweet
  • share via email
Your comment has been posted.
We have sent you a verification email. To verify, just follow the link in the message.
Some technical error. Please try again.

 

(Excerpt from an article originally appearing in the Fabricating and Metalworking magazine, written by SigmaTEK’s VP of Engineering, Glenn Durham)

Few factors have a bigger impact on the sales, health, and bottom line of your business than costing and quoting. Most of us realize that if we set our prices too high then our products and services will not sell, but the problem is often the opposite: we price too low. How do we set prices?

The film Jerry Maguire made popular the phrase, “Show me the money!” The metal fabrication industry is a long way from the world of high-profile sports agents, but the same principle applies you need to see the money. And that means we need to think well about the prices we quote. Few factors have a bigger impact on the sales, health, and bottom line of your business than costing and quoting. Most of us realize that if we set our prices too high then our products and services will not sell. But the problem is too often the opposite: we price too low. (Some reports suggest that 80 percent of pricing in the metal fabrication business is too low!) It’s easy to panic when our quotes that we sent do not always produce orders. How do we set prices?

WE NEED TO KNOW THE PART COST

Figure 1. CAD/CAM software calculates the cost of the titanium material used here based on the raw material cost and the amount of material used, which can be either the actual material needed to make the part (True Shape) or the amount used by the smallest rectangle the part will fit in (Rectangular Shape). Knowing these, an estimator can quickly determine the least-and-most cost range. Operating Costs here can include the costs to operate the machine, consumables, shop overhead, and even the operator’s time.

Correct pricing begins with knowledge – and the first thing we must know is the actual cost of the parts produced. In metal fabrication, that means the cost of materials, machines, and manpower. Figure 1 shows a typical CAD/CAM software costing. Notice that the software calculates the cost of the material used (in this case titanium) based on the raw material cost and the amount of material used. The material used can be either the actual material needed to make the part (the True Shape Material Cost) or the amount of material used by the smallest rectangle that the part will fit in (the Rectangular Shape Material Cost). By knowing both costs, the Estimator can quickly determine a least cost and a most cost range. Notice that the software also provides an Operating Costs. This calculation can include the cost to operate the machine, the cost of consumables, the shop overhead costs, and even the cost of the operator’s time.

WE NEED TO KNOW THE NESTED COST

 Part cost alone is often insufficient to make an accurate quote, however. For that, the estimator needs to know the nested cost: the cost of the part as it sits on the material that is cut. Nested cost accounts for the extra material that is lost to scrap around the part. In Figure 2, you see that the cost of the part (when considering the nest) is $13.35 rather than $13.16. This is a more accurate and complete picture of the cost of making this part.

Figure 2. For accurate quoting, an estimator needs to know the nested cost – the cost of the part as it sits on the material that is cut – that accounts for the extra material lost to scrap around the part. In this example, the cost of the part (when considering the nest) is $13.35 rather than $13.16, a more accurate calculation.

  • Follow @CNCTimes

Captcha is required.
Sorry Captcha Unsuccessful!!

Latest Technical Articles

  • 28 January, 2020

    The Additive Update: Wilson Tools

  • 04 May, 2019

    Faster and better machining performance: on existing equipment

  • 24 April, 2019

    Convenient clamping by magnet: Schunk

  • 23 April, 2019

    The 3D FABRI GEAR Advantage

  • 19 April, 2019

    Development of Two Types of Sintering Bonding Materials for Next-generation Power Modules

  • 15 April, 2019

    60% higher productivity with Duo-Lock™

  • 03 April, 2019

    Digital Twins, The Birth of Constant Optimization: Siemens

  • 01 April, 2019

    Bridging the Skills Gap with MAZATROL

  • 22 March, 2019

    THE PRECISE GEOMETRY OF 3D CUTTING KBM motors as a byword for accuracy in laser cutting

  • 05 March, 2019

    Fire risks in a CNC

  • 19 February, 2019

    Group Technology: Operational Excellence in the Industry 4.0 Era

  • 30 June, 2018

    Robotic Fettling for Iron Castings- A revolution in the foundry industry

  • 08 May, 2018

    Collaborative Robots, India and the Future of Manufacturing

  • 13 June, 2017

    PRACTICAL APPROACH TO CONTROL WASTE IN MANUFACTURING

  • 09 June, 2017

    ESPRIT’s 2017 software update

  • 30 March, 2017

    Dexterous from SCHUNK

  • 20 March, 2017

    PiWeb from Zeiss Metrology:  Quality Data Management with Easy Reporting

  • 22 February, 2017

    How an insert is made

  • 20 February, 2017

    EW500 Industrial Router: Safe Connection for Your Industrial Applications

  • 23 January, 2017

    Taking the plunge in turning

  • 28 December, 2016

    Chamfering and Deburring gears precisely to achieve smoother gear transmissions

Previous Next

Related Technical Articles

  • 03 April, 2014

    Reverse engineering and its importance in new product development

    Category: Software
  • 20 September, 2013

    Optimising Multi-axis CNC Productivity

    Category: Software
  • 14 September, 2013

    Reverse Engineering

    Category: Software
  • 14 September, 2013

    Solid Modelling vs Surface Modelling

    Category: Software
  • 14 September, 2013

    Virtual Machining

    Category: Software

News

  • 12 April, 2021

    Strength of cold working steel

    Category: Software
  • 06 April, 2021

    Machine Swap through ESPRIT CAM

    Category: Software
  • 30 March, 2021

    IronCAD Mechanical 2021 is an add-on productivity module in the IronCAD Productivity

    Category: Software
  • 23 March, 2021

    CAMWorks releases new wire EDM module with single click model-to-G-code functionality

    Category: Software
  • 16 March, 2021

    Shapr3D moves from “Imagination to production”

    Category: Software
  • 09 March, 2021

    Mastercam Mill Developments Target a Streamlined Manufacturing Process

    Category: Software
  • 02 March, 2021

    Stock Automation by Esprit CAM

    Category: Software
  • 23 February, 2021

    Ansys Launches Moxie to Enhance System Model Validation Processes

    Category: Software
  • 23 February, 2021

    Mastercam 2022 Public Beta Released for Global Testing

    Category: Software
  • 23 February, 2021

    CADBRO 2021 - A collaborative CAD tool for all your "Design Review" needs Webinar on 26th Feb @11.30am

    Category: Software
  • 16 February, 2021

    CAMBRIO Appoints Sandeep Srivastava as Country Manager for India, South East Asia, and Middle East

    Category: Software
  • 15 February, 2021

    Powerful Selection Techniques in The New ESPRIT

    Category: Software

Case Studies

  • 16 December, 2019

    Lifting Devices Provider Cyrus Designs 20% Faster with ZW3D

    Category: Software
  • 14 February, 2019

    Zoom Technologies Chooses CADbro, a powerful 3D CAD Viewer, to Accelerate Customized Mold Production

    Category: Software
  • 23 March, 2018

    Teamcenter and NX help Avcon Controls streamline processes and optimize use of resources

    Category: Software
  • 06 March, 2018

    Harita Seating Standardizes on Altair Suite of HyperWorks™ for all CAE ApplicationsHyperWorks

    Category: Software
  • 26 December, 2017

    Swiss coffee machine manufacturer optimizes development and production with Solid Edge

    Category: Software
  • 22 December, 2017

    Addressing Design Development Challenges through Simulation Driven Platform

    Category: Software
  • 11 January, 2017

    Alphacam guides 5-Axis future for Cambridge Precision

    Category: Software
  • 30 December, 2016

    Manufacturing with a Progressive Edge

    Category: Software
  • 28 December, 2016

    Responding quickly to ship structural analysis needs with easy-to-use Femap

    Category: Software
  • 27 December, 2016

    It’s all in the family

    Category: Software
  • 19 December, 2016

    Manufacturing speed for Drag Boats

    Category: Software
  • 12 December, 2016

    Edgecam Waveform plays key role in two product launches for Fenn Tool

    Category: Software

Interviews

  • 10 December, 2018

    Mr. Sean Yao, Territory Head, ZWSOFT and Mr. Anubhab Hazra, CEO, CADbro, India, in conversation with CNCTimes

    Category: Software
  • 06 November, 2018

    Mr. Volker Nesenhoner, Chief Executive Officer, OPEN MIND Technologies AG, talks about hyperMILL & Indian Market

    Category: Software
  • 25 September, 2018

    Mr. John Fox, Vice President, Marketing, Mainstream Engineering, Siemens PLM Software Inc, talks about Solid Edge 2019

    Category: Software
  • 28 May, 2018

    Our consistent goal is to continually improve the quality, performance and reliability of our products: Revware Inc

    Category: Software
  • 25 March, 2017

    We aim to be the dependable partner of choice for our customers: Abhijit Kumthekar

    Category: Software
  • 29 January, 2017

    MachineTools.com is exploring possibility to have partnership in India: Stu Carlin

    Category: Software
  • 28 January, 2017

    Mastercam sees a steady growth in the Indian market: Gene Welti

    Category: Software
  • 01 September, 2016

    Cloud capabilities in Solid Edge ST9 provide faster, flexible deployment options: John Fox

    Category: Software
  • 23 June, 2016

    PolyWorks has universal approach with focus on India: Patrick Castera

    Category: Software
  • 05 February, 2015

    Delcam’s vision is in line with leadership goals: Vineet Seth

    Category: Software

Product Showcase

  • 06 July, 2019

    OPEN MIND Expands Functions in High-performance Cutting Module

    Category: Software
  • 14 May, 2019

    Versatile quick-change system for handling weights up to 50 kg

    Category: Software
  • 25 April, 2019

    hyperMILL® 2019.2 at Moulding Expo

    Category: Software
  • 02 April, 2019

    SprutCAM 12 release

    Category: Software
  • 02 April, 2019

    MeasurLink 9 Product Release

    Category: Software
  • 25 March, 2019

    OCTOLite™ Manual Semi-Automatic Inspection System from QVI

    Category: Software
  • 24 April, 2017

    OnCreate3D, First Full Cloud CAM App provides toolpath editing feature

    Category: Software
  • 03 August, 2016

    Single solution to manage thousands of product variants

    Category: Software
  • 16 December, 2015

    Hexagon Manufacturing Intelligence presents the latest release of PC-DMIS

    Category: Software
  • 07 December, 2015

    ANSYS releases new versions of SpaceClaim and FENSAP-ICE

    Category: Software
  • 29 September, 2015

    Renishaw launches new CARTO software solution for calibration systems

    Category: Software
  • 17 October, 2014

    Delcam launches new PowerSHAPE Pro CAD for CAM

    Category: Software

Blogs

  • 11 April, 2017

    “OnCreate3D” First Full Cloud CAM app, introduces Stock Definition, modification and use in rouging toolpaths and many more features.

    Category: Software
  • 31 March, 2017

    HOW TO CREATE MACHINING OPERATIONS AND NC FILE OUTPUT FOR YOUR ONSHAPE MODELS

    Category: Software
  • 03 March, 2017

    Cloud computing – what is it ?

    Category: Software
  • 13 January, 2017

    What is Adaptive control in CNC ?

    Category: Software
  • 05 January, 2017

    2D, 3D and 5-axis Milling – where and how much are they used?

    Category: Software
  • 24 December, 2016

    CNC Milling – 2D, 3D, 5-axis milling

    Category: Software
  • 08 December, 2016

    CNC milling – chip breaking

    Category: Software
  • 28 November, 2016

    Cutting speed vs Feed rate – Milling

    Category: Software
  • 21 November, 2016

    Cutting speed vs Feed rate

    Category: Software
  • 10 November, 2016

    Reducing face milling time

    Category: Software
  • 03 November, 2016

    IOT and Industry 4.0

    Category: Software
  • 07 October, 2016

    Modular vs Quick change tooling

    Category: Software

Videos

  • 12th April, 2021

    WORKXPLORE Video for ‘Client Viewer Export'

    Category: Software
  • 04th March, 2021

    OPTIPOWER – One step added to toolpath Optimization.

    Category: Software
  • 23rd December, 2020

    Planning & Scheduling of Projects in WORKPLAN

    Category: Software
  • 16th December, 2020

    Simulation Analysis

    Category: Software
  • 09th December, 2020

    Variable feed rates & Spindle Speeds for Turning cycle

    Category: Software
  • 01st December, 2020

    RADAN Designer : Unfolding single parts and assemblies

    Category: Software
  • 25th November, 2020

    VISI Electrode

    Category: Software
  • 10th November, 2020

    VISI Flow - Efficient Plastic Injection Moulding Simulation Solution

    Category: Software
  • 22nd October, 2020

    Advanced options for cabinet modifications

    Category: Software
  • 12th October, 2020

    Cabinet Design to Production

    Category: Software
  • 07th October, 2020

    ALPHACAM - Feature based machining

    Category: Software
  • 07th October, 2020

    ALPHACAM - Nesting process

    Category: Software

Showroom

  • 29 March, 2019

    Tool Presetter India

    Category: Software

TESTIMONIALS VIEW MORE

We would like to express our sincere appreciation for your service to us.You have provided us best marketing platform through CNCTimes. We look forward to extending our contract with you for years to ...

Mr.Adil Atar, Ass.Mng.Technical Sales & Service: Precision Machinekraft

Dedication and determination is key to success and CNC Times team is evident to it - FARO Business Technologies (I) Pvt Ltd

Ms. Amrita Gokhale , FARO Business Technologies

Seminar was really very good, please let us know about future seminars. we would like to attend the seminar on "Machining of the material above 60 HRc like titanum"

Roshan Deshmukh, Design Engineer - Ashvini Magnets Private Limited

FOLLOW US

TECHNOLOGY FOCUS

    Machine Tools

    • CNC Lathe
    • Boring Machines
    • Drilling Machines
    • Spark Erosion
    • Wire Cut
    • Vertical Machining Centers - VMC
    • Horizontal Machining Centers - HMC
    • Grinding Machines
    • Gear Cutting Machines
    • Additive Manufacturing - RP
    • Multi-Axis Machines
    • Multi-Tasking Machines
    • Welding Machines
    • Presses
    • Laser Cutting
    • Others
    • IIoT

    Metrology

    • CMM
    • VMM ( Vision Measuring Machines )
    • PCMM ( Portable CMM )
    • Measuring Instruments
    • Probing Technology
    • 3D Scanners
    • Roundness Measurement
    • Surface Roughness Measurement
    • Contour Measuring Machines
    • Others

    Accessories

    • Workholding
    • Toolholders
    • Spindles
    • Coolants
    • Others

    Software

    • CAD
    • CAM
    • CAE
    • ERP
    • Inspection Software
    • Reverse Engineering Software
    • MES
    • Others

    Mechatronics

    • Robotics
    • Automation
    • CNC Controllers
    • Others

    Cutting Tools

    • Turning Tools
    • Milling Tools
    • Grinding Wheels
    • Drilling
    • Others

INDUSTRY VERTICALS

  • General
  • Automotive
  • Aerospace
  • Healthcare
  • Healthcare Engineering
  • FMCG
  • Consumer Durable
  • Defence
  • Electronics
  • Oil & Gas
  • Heritage
  • Heavy Engineering
  • Die & Mold
  • Plastic
  • Footwear
  • Jobshop

POLICIES

  • Payment Policy
  • Terms of Use

PROFILE

  • About us
© 2021 www.cnctimes.com
Developed & Maintained by CNCTimes.com