The cost estimation of plastic molding needs to consi […]
The cost estimation of plastic molding needs to consider several factors. These factors can be listed as follows:
1. Mold cost estimation.
2. Cost estimation of plastic materials and other raw materials.
3. Estimate manufacturing operations.
4. A summary of cost factors in a standardized form.
5. Use the accounting department to record and maintain accurate and up-to-date information.
The importance of correct cost estimates in setting appropriate sales prices does not require any supporting arguments. If the price is too high, the business will move to other places.
If they are too low, the end result is the same because the manufacturer has to withdraw. A well-calculated cost estimation system is necessary for plastic molders.
It allows his quotation to be consistent with the quotations and costs of his competitors and minimizes the costs involved in the quotation.
The system for deriving mold time estimates has been described.
Since estimating the time required to build a tool is one of the most difficult items in the task of providing cost figures for quotation purposes, time estimation methods have been fairly extensively discussed.
However, plastic tools and manufacturing costs are more expensive than the time required to manufacture the tools.
In addition, the cost of the tool may be only a small part of the total value of the order, and the estimate of the cost of materials and manufacturing operations exceeds the estimate of the tool in importance.
The variety of items involved in determining the quotation is sufficient to require a standardized summary procedure.
This helps prevent the omission of certain items and puts estimates on the basis of similar businesses.
Some discussion on the breakdown of the estimation work is needed to develop a method of summarizing the various estimates in the form of satisfactory quotations.
First of all, the procedures and records of the accounting department must be followed by the estimator, and adjusted as far as possible by the accounting department to facilitate its use.