Identifying correct times for moving material, setting up machines, and manufacturing parts has many challenges. Having quick and consistent access to this type of information, when agreed upon, can greatly streamline a company’s estimating and quoting ability. By also having the opportunity to change and update this information quickly and easily can greatly affect — winning more jobs — more effectively. Product Cost Management Tool
Numbers matter when it comes to making decisions!
Whether these numbers are for time or cost, having the ability to identify and view the numerical cost drivers, are critical steps in helping manufacturing and purchasing teams make more effective decisions – from both sides.
Consider the following familiar cost and price related situations:
Why is it that a restaurant dinner bill has everything itemized?
Why does a grocery bill include everything spelled out?
Why do people balance their checkbooks down to the last penny?
What happens in your head when you get a quote or a bill with no supporting information? Do the words, “how does it add up to this”, come to mind?
Both customers and prospects want to be sure that something wasn’t mistakenly forgotten or that data was not incorrectly or inadvertently added. No surprise here, we all just want to double check for simple, or of course, monumental mistakes. Not having sufficient data at our fingertips for a quick review, can greatly affect the speed at which final offerings are delivered, and purchasing decisions are made.
Estimators, at manufacturing facilities, can easily change this by using tools that provide a means to show the numbers and thus spell out exactly what the times or costs are — based on speeds and feeds, etc. Listing out the operations with the individual processes and specific work centers can also add value. Failure to communicate more information to customers and prospects may not be the best strategy as prospects and customers continue to want more.
Cost estimating software packages take the guess work out when trying to identify from where a final number is derived.
Estimating systems, also used for product cost management, provide multiple fields, and data points, that can be adjusted for time and cost. Internally these data points can identify high-cost drivers pointing a direction of where to look in order to lower the part costs. Conversely, when these additional data points are presented to prospects they can be the turning point in helping build a long-term truly-profitable relationship. When companies hide some, most, or all of the supporting numerical data prospects and customers tend to give back, at an increasing rate, what has been given to them – nothing!