Manufacturing Quoting & Estimating

Anatomy of a manufacturing quote

A complete quote includes: (1) Routing — the sequence of operations (setup + run time per operation, machine/resource), (2) Materials — raw material, hardware, consumables with current prices, (3) Outside services — heat treat, plating, testing sent to subcontractors, (4) Markup — your margin on top of costs, and (5) Price breaks — different unit prices at different quantities reflecting setup amortization.

The routing is where most of the estimating skill lives. Knowing that a 6061 aluminum bracket takes 15 minutes setup + 3 minutes per piece on a 3-axis VMC requires experience. Software can't replace that judgment — but it can make the math instant once you input the times.

Common quoting mistakes

Under-estimating setup time is the #1 margin killer. Shops estimate run time well but forget fixture building, program proving, and first-article inspection. Second: ignoring material waste (kerf, drops, minimum order quantities). Third: using flat-rate overhead that doesn't reflect the actual cost difference between a manual lathe and a 5-axis mill. Fourth: not tracking win rates — if you win 50% of quotes, you might be too cheap.

Speed vs accuracy

The tension in quoting is speed vs accuracy. An RFQ needs a response in 24-48 hours or the customer moves on. But a thorough quote with detailed routing takes time. The solution is a two-tier approach: (1) quick-quotes for simple or repeat work using saved routings and historical data, and (2) detailed engineering quotes for complex new work that justify the time investment.