Estimating (Quote) process

By Tom Miller Date 07-30-2009 19:32

I would like to get some input from others on cost estimating of fabrications. (1) How you deal with plate drops from burn operation. Is the cost of material passed on to Customer or only material used in fabrication with a factor for the skeleton? Mainly concerned with large inside diameter drops (2) Do you use any type of formula for estimating cost $/lb. etc. (3) Is there software available to assist with estimating?

We are a company transitioning from a captive customer base to more commercial, mainly in large fabrications. Any input would be appreciated.

By Lawrence (*****)

Date 07-30-2009 20:31

Welcome to the forum Tom...

I don't have anything to add but hello.

But if you haven't already, go ahead and try the search function on the forum and see if the term "estimates and cost" doesn't yeald something.

By CHGuilford (****)

Date 07-31-2009 01:51

Tom, I am not an estimator and I do not know about questions 2 and 3. So take all this for face value only.

I can tell you that plates drops are figured according to useable sizes. Basically, if the drops and skeletons can't be used without a lot of handling, we just scrap it and figure that as part of the cost.
Same goes for drops of material that we don't have much use for. If the material would only sit in inventory, all of it gets charged to the job.

We try to program all the parts we can into a plate, large and small, to get the maximum material useage. Plasma is most frequently used and cutting speeds are relatively high so the time to cut is when the plate is on the table. It's better to cut it all and set aside what will get used later.

It's a shame to see some of what goes in the dumpster but material handling costs can quckly exceed the value of drop plates. And I'm not even sure what we consider to be minimum size; the burntable operator usually has a good idea of what is being used most and he trys to keep some smal pieces handy. But if the dust settles on them, out they go.

By ssbn727 (*****)

Date 07-31-2009 19:39 Edited 07-31-2009 19:51

Hi Chet!

Just a suggestion but, instead of scrapping the unwanted metal, you may want to get in touch with any of the local schools that teach welding/fabrication, and donate the metal to them... Some schools even honor the price paid for the material, and can even use the donations as tax deductions for the companies involved. ;)
Just something to ponder for anyone that wants to make better use of their scrap. :) I'm sure Larry has some sort of arrangement with some of the fabricators in his neck of the woods. ;)

Respectfully,
Henry

By CHGuilford (****)

Date 08-12-2009 20:05

Hi Henry.
Sorry I didn't see your post earlier. I haven't been online for a while now - we are just finishing one AISC audit (an hour ago) with one to go in 2 days - so that keeps me off the streets until it's done.

We do make scrap available to schools in our area - to any that want it. That's been happening ever since I can remember.
We also donate welding wires. Our maintenance department often gets part rolls of wire on machines sent in for repair. Rod ovens may be full of E7018. A can of rods may have a broken seal and we don't bother trying to track a re-bake. You never know what will turn up when we de-mob a job. It costs more to prove that leftover electrodes are still OK than it does to scrap them. We're not talking truckloads of rods but there is sometimes enough to help a school out.