Estimating System for Plastic Molds

Estimating System for Plastic Molds

Cost estimating for plastics molding requires thorough consideration of several factors. These factors may be listed as follows:

  • 1. Estimate of tooling costs.
  • 2. Estimate of plastics materials and other raw materials costs.
  • 3. Estimate of fabricating operations.
  • 4. Summary of cost factors in a standardized form.
  • 5. Use of accounting department records and maintenance of accurate, up to date information.

The importance of correct cost estimates in setting adequate selling prices needs no supporting arguments. If prices are too high, business goes elsewhere.

If they are too low, the result is the same in the end because the manufacturer has to quit. A well calculated cost estimating system is a necessity for the plastics molder.

plastic mold
plastic mold

It allows his quotations to be in line with those of his competitors and with his costs, and it minimizes the expense involved in making quotations.

A system of deriving time estimates for molds has been described.

Because estimating the time required to build tools is one of the most difficult items in the task of providing cost figures for quotation purposes, methods of time estimating were discussed rather extensively.

However, there is more involved in the cost of plastics tooling and manufacturing than the cost in hours required to build the tools.

Also, the cost of the tools may be only a small fraction of the total value of the order, and the estimates for the material and manufacturing operations costs then outweigh the tool estimate in importance.

The multiplicity of items which are involved in determining a quotation price is sufficient to require a standardized summarization procedure.

This helps to prevent omission of some of the items, and it places the estimating on a business-like basis.

Some discussion of the subdivisions of estimating work is required to develop a method of summarizing the various estimates in the form of a satisfactory quotation.

In the first place, accounting department procedures and records must be followed by the estimator, and adapted as much as possible by the accounting department for his convenient use.