Costing and estimating are critical components for any manufacturing business. Start Proto streamlines these processes, allowing users to accurately estimate costs associated with production. In this guide, we’ll explore how to efficiently use Start Proto’s costing and estimating tools.
Overview of Costing and Estimating in Start Proto
Costing and estimating in Start Proto revolve around key factors like:
Setup Time: The time it takes to set up for production. This cost is charged per order.
Run Time: The time spent producing a single item. This cost is charged per unit.
Run Rate: A custom rate that can be defined based on processes.
Material Consumption Cost: The cost of raw materials used in production.
Sub-component Costs: Additional costs for any sub-components used during production.
These elements are calculated together to provide an estimated production cost.
Step-by-Step Costing in Start Proto
1. Create a New Production Item
Start by creating a new production item. For example, in the tutorial, a "tumbler mug" was created as a make item. After the item is added to the system, the next step is to define the operations needed for production.
2. Set Up Operations
For each operation, users must:
Select the process (e.g., milling, welding, or assembly).
Define the setup time, which is only charged once per order.
Set the run time, which applies to each individual item.
Input the run rate, a customizable value that determines cost based on the process being used.
3. Assign Raw Materials / Sub Components
Next, assign the raw materials needed for production. This is done by:
Navigating to the “Add Item” button.
Searching for the Buy Item / Sub Component and specifying the amount required per item.
Saving the operation.
This step ensures that input items are accurately reflected in the final cost estimate.
4. Save and View Cost Estimates
Once all operations are set up, save the item. You’ll then be presented with the Item Details Page, which displays the estimated cost for producing a single unit of the item.
If you want to quote for multiple units rather than just one, use the Cost Breakdown Tool. This feature allows users to specify a quantity, view the breakdown of costs for each operation, and see the total material consumption.
Pricing and Quantity Breaks
After estimating costs, you can move on to setting pricing. Start Proto allows users to establish default pricing for single items or create Quantity Breaks, which provide different price points for larger order quantities. For example, you can set different prices for 1, 5, 10, or 15 items.
Markup and Margins: Users can set custom pricing or apply markup/margin percentages based on the estimated costs.
Skew Pricing: Businesses can encourage higher volume orders by offering lower per-unit pricing for larger quantities.
Quoting with Cost Data
Once pricing is set, it’s easy to use the data for creating quotes. Start Proto offers several quoting options:
Direct Quoting: Use the price rules and item data directly from the item details to quote customers.
Price Breaks in Quotes: Price breaks for various quantities can be displayed on the quote, helping customers see their options.
Customizing Quotes: Users can also push custom price breaks or default quantities to tailor quotes to specific orders.
Reviewing Production Analytics
One of Start Proto’s most valuable features is the ability to compare estimated costs with actual production costs. After production, users can:
Navigate to the Production Analytics Tab on the Item Details Page.
Review detailed data on actual production times, material usage, and costs.
The Production Analytics Page provides a breakdown of each session’s operations, including predicted vs. actual run times, scrapped items, and material consumption. This allows users to make data-driven adjustments to future cost estimates and routing steps.