We recently were at a customers office in Tennessee, where we had begun the conversation on cost based estimating. They had several estimators all of whom quoted in a different manner. One statement that stood out was when the customer said “if the estimator is still quoting based on weight, they need to be fired.” I was intrigued by this statement and wanted to know why.
The customer explained that in today’s world if an individual is not utilizing value add and true geometry to base his quotations, then he is not accurate at all. The old school mentality of taking the weight and adding margin is all guess work. He explained the best way to estimate is based on machine run time, nesting, and labor costs in value add operations. You will then add your markup based on the organization or number of parts.
Because we recognize that each method is still used, SecturaSOFT utilizes density. This way an organization can quote based on weight or geometry. In addition, we can purchase material in the same manner.