RINCo LLC. |
June 16, 2004
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FOR IMMEDIATE RELEASE
SHOP WINS MORE JOBS ...with estimating software Since
installing a computer aided estimating system five years ago, Hale Screw
Machine, a 23‑year‑old job shop located in Waterbury, CT,
experienced a 70% relative increase in winning bids for new jobs, keeping the
shop's 14 employees busy. Richard
Difederico, Sr., the shop's former owner and current plant manager, wasn't
looking for an increase in new business when he bought the program, Machine Shop
Estimating (MSE), developed by Micro Estimating Systems. At the time, Difederico
was just looking for a faster way to do his quotes. "I
needed a more efficient and quicker way to estimate," he recalls, adding
that the software has provided just that since its installation. "It really
allows me to do my estimating more accurately and far more quickly. It takes me
about 15 minutes to do a quote now, compared to a half hour before." That
new efficiency helps Difederico bid on approximately 1,100 jobs each year from
customers all over the U.S., and some in Canada. Between 60% and 65% of the
shop's jobs are repeat orders, according to Difederico. But the most impressive
statistic he can cite since installing MSE, is a jump to 17% winning average up
from the shop's 10% average in 18 years of operation without the software. One
of the reasons Difederico points to for the increased success is MSE's ability
to calculate estimates with alternate manufacturing methods. This feature lets
him produce‑multiple estimates for a single part in almost as little time
as a single estimate. He then uses the most efficient production method for the
bid. "Some
jobs are just going to go on the CNC Swiss, but there are others that might be
done on three different machines," Difederico explains. "Without the
software, I wouldn't do the estimate three different ways, I'd just pick a
machine out and say, `I think this is the cheapest one.' When I was doing that,
I was only getting 10%, so my percentage has gone up since I got the software.
Now, I look at each part and check to see how many different machines the part
can be made on. Then I'll do a cycle time on each machine to see which one comes
out the cheapest and base my quote on that machine. It gives me the cheapest and
the fastest way to do jobs when I compare them." Comparisons
are big at Hale. When Difederico first installed MSE, he compared the cycle
times in the software's standard database with those of the machines in his
shop. He then took the time, as MSE's developer recommends, to adjust the speeds
and feeds database to reflect the actual capabilities of the shop's machines,
making his estimate cycle times that much more accurate. Quite a few of the
machine tools used at Hale were in the software's database, including the
Davenports, Brown & Sharpes, Swiss Cams, Swiss CNC, and CNC machining
centers for both turning and milling. The most frequently used machines are the
large CNC turning center, and the Swiss CNC machine, Difederico says. Another
comparison that Difederico makes with MSE is for part quantities. When
calculating estimates, especially when a customer asks for multiple part
quantities, he will often give the customer price options for four or five
different volume runs to show how quantity impacts per piece pricing.
Calculating estimates for different quantities in MSE only requires a click of
the mouse and a few keystrokes for each new quantity: That minimal effort
sometimes pays off with larger orders, according to Defederico. "If the
customer asks me for two quantities, I normally give them four or five," he
explains. "I give them quantities that'll save them money automatically.
This system makes that easier. If I was doing it long hand, I wouldn't have time
for that. They love it. Sometimes they order the larger quantity." When
he works on estimates for high quantity part runs, Difederico uses another one
of MSE's features, the Net Weight Calculator, to determine how much scrap each
part will produce. He then uses the software to calculate the value of scrap,
removing it from his estimate to make his bid more competitive. Another
feature of the system Difederico finds useful is its Estimate Status Monitor.
Each month, he uses the status monitor to review the percentage of jobs he is
winning, and to verify the status of outstanding estimates. He is using this
information to try to determine which are his most successful months and why. "I'm
trying to figure out which months I'm doing the best," he says. "It
seems like there's certain months I'm doing better than others, and I don't know
why. That's something I'm working on." His
raw data for these calculations comes from the purchase orders the shop
receives. When an order is received, it is entered into the status monitor along
with the date it was received. In addition to showing order trends, this
information also lets Difederico track his percentage of winning estimates, a
figure he likes to monitor. "That's
how I get my percentages," he explains. "That's very important to me.
I want to find out if I'm too high, or too low or if I'm losing jobs to the
competition." And,
since installing MSE, Difederico has been pleased to see those percentages
continue to climb. Micro
Estimating Systems Inc., a New Berlin, WI subsidiary of OnCourse Technologies,
Inc., develops and markets high precision business software tools for
estimating, process planning, cost analysis, and methods analysis for CNC and
manual equipment. AUTOMATIC MACHINING: June 2000
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