Calculating Cycle Time with Estimating Software

Calculating the entire operation costs depends on both setup and cycle time.   In order accurately estimate your costs to complete a job you must be as accurate as possible during the estimating process.   If you spend too much time estimating you will be burning a lot of cycles which costs money.   If you do not accurately estimate you are potentially losing jobs and or losing the job you one because it costs more to produce then you have estimated.

Estimating setup and run time can be as simple or as complex as you desire.    Now its time for the final formula to be realized which includes setup time and cycle time with all its details.

The setup formula again is

(Staging Time + Setup Time + Transit Time + Tear Down Time)

The cycle time formula  is

(Handling Time * Run Time) *( Quantity To Be Produced)+(Inspection Time*Quantity Of Parts Inspected)

The operation formula becomes

(Staging Time + Setup Time + Transit Time + Tear Down Time)

+  (Handling Time * Run Time) *( Quantity To Be Produced)+(Inspection Time*Quantity Of Parts Inspected)

Cost estimating using good estimating software tools makes producing accurate quotes much simpler.    The formula given is only the first step in learning how to estimate.   I will talk about shop rates starting with my next blog.  Shop rates are critical part of an estimate because you may accurately estimate the time it takes, but if you do not have a handle on your shop rates you will not be profitable.

http://www.mie-solutions.com/mie/index.php/MIE-QuoteIt/

http://www.mie-solutions.com/mie/

The mission of MIE Solutions is to apply advanced technology to improve manufacturing productivity and quality in the field of fabrication. At MIE Solutions, we do not compromise product quality or service. We strive to satisfy our customer’s every reasonable requirement with speed, courtesy and honesty. Our pricing reflects the cost of providing high quality products and excellent service but remains fair. Our goal is to be known throughout the world for the development and production of innovative products. We endeavor to be regarded as the leading supplier of high technology in the sheet metal fabrication. We want our customers to be proud to own MIE products.

Author: MIE Solutions

David Ferguson has over 20 years of experience in the manufacturing and fabrication industry. David Ferguson has been to over 100 manufacturing companies helping and guiding them to be more efficient and cost effective. As a child in Junior High School David Ferguson found a passion for the early computer systems, which would drive much of his future work. David Ferguson created and sold his first computer program, Arrow Data Systems, which was an early CAD/CAM system for the Apple 2e Computer. In the late 1980's after seeing his father (a sheet metal manufacturer) come home many nights estimating, David Ferguson saw an opportunity to optimize his effort through computer technology. Shortly thereafter the FabriTRAK Production Control package was developed. The Quote It! estimating package was developed out of the FabriTRAK system to become one of the leading sheet metal estimating packages in the world. David Ferguson has always had a passion for developing software to make the manufacturing process simpler, faster and more efficient. Prior to founding MIE Solutions David Ferguson worked with his father at Alco Sheet Metal, METALSOFT Inc. and was a consultant at Toyota Motors Sales. David Ferguson has his Masters in Computer Science and Mathematics from California State University, Long Beach.

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