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    MIE Solutions Blog

Calculating Cycle Time with Estimating Software

Posted by Dave Ferguson on Jul 16, 2009 7:04:04 AM

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/

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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.

Topics: tools, company, cost estimating, costing, cycle time, erp, Estimating, estimating software, labor estimating, machining, metal, mie solutions, mie trak, mrp, pricing, quoteit, quoting, software

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