Manufacturing Efficiency in Estimating

How many of you have estimated a job and wonder how anyone could do it any cheaper and make money?  Well your not alone in your thinking.   There are manufacturers that are using reverse auctions in order to try to get more work and pick up new customers.   The problem is when you have a buyer that is 100% fixated on the price and ignoring the many other many factors presents a difficult problem.

Manufacturing efficiency is one of the areas where you can compete for jobs.   One example I heard of this past week is a large government contract was one by a supplier because of price.   This machine shop could have produced this widget by manually punching the part, but they decided to spend some extra money up front and create a die for the job.  This machine shop had the technical expertise to create the die when two other machine tool makers would not make for them. This machine shop is now able to make these parts very efficiently and one the job because all the other shops that competed with him did not base their quote on a die.

This tells us that manufacturing parts efficiently can overcome many other issues of price during the bidding stage.  Some ways that manufacturing can be more efficient is automatic loaders, robotic welders, automated punch presses, lasers, business software, cad software, estimating software and many other areas.

In this economy I would suggest looking at all your machines and capabilities to try to determine where they can be made more efficient.

MIE Solutions provides software products to make your business process more efficient so please take a look at our product line below.

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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