Estimating in Made-to-Order Manufacturing

Estimating is the process to determine a price for goods and services that a company or individual provides. Elements of an estimate are labor and overhead, materials, subcontractors, and profit. In a job shop (made to order) environment, these aspects are important: (1) request for quote (RFQ) management, including where and how to be visible to buyers, (2) material cost, which should consider more than just raw material cost, (3) operation estimating, including possible outside processing, (4) large assemblies, which can be very complex and easy to misquote, and (5) market and supplier competition. Presented at: FABTECH International & AWS Welding Show, Including METALFORM, Nov. 14-17, 2011, Chicago, IL.