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This comprehensive guide by Stephen R. Whittaker, an expert in quality assurance, explores the fundamentals of printing and imaging estimating. It covers a wide array of topics including cost structures, production standards, and the necessity of constant updates within the estimating process. Key points include understanding direct and indirect costs, improving operational efficiencies, and the importance of thorough job planning to ensure economic viability. The guide emphasizes the need for continual training and adaptation in estimating practices to maintain profitability in the graphic communications industry.
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Estimating and Its Foundations Stephen R. Whittaker Adjunct Professor, RIT CIAS/SPM Vice President, Quality Assurance Monroe Litho Rochester, NY American Society for Quality Certified Manager of Quality/Organizational Excellence Certified Quality Auditor Senior Member
Introduction • What is “Printing/Imaging Estimating” ? • Let’s share some thoughts about this discipline...
The Role and Scope of Estimating • Generic to any process • Digital Imaging • Offset Lithography • Gravure • Flexography • Screen Applications • Letterpress • Technical Hybrids
All Inclusive Hourly Cost Rates • Standard NAPL 20 section template • Direct, Indirect, fixed and variable costs • Operating efficiencies • Costing model based upon utilization
Production Standards • Constant updating • Number of units produced under a specific set of defined conditions
Purchasing Policies and Practices • Paper and raw materials • Outside services • Quality initiatives • Cycle Time and Accuracy of information • “Hidden Costs”
“Goof Proofing” In Planning • Need to ensure that a job is planned the most economic way • Utilize consistent data base “lookup” tools • Need to teach and coach throughout manufacturing to ensure conformance
The “Nuts and Bolts” of a Good Estimate: • Impositions • Paper • Pre-Media • Ink/coating • Presswork • Print Finishing • Pack, Ship, Deliver
Teaching the “Blocks of Logic” • Module approach • Work through the “stumbling blocks” • American paper system • Pre-media workflow
Computer Assisted Estimating Practices • “Hidden” software gems that cause chaos… • Standards • Rates • Calculations • No opportunities to “field test” software before purchasing! • Buyer…beware!
Market Pricing Policies and Practices • Constant vigilance for “testing the water” in response to economic conditions • Remove all of the excuses for Sales Associates… • Data collection/win-loss information • Estimating Management tools [number of quotes by client]
Preparing and Submitting an Estimate • Terms and Conditions…changing. • Uniform Commercial Code simple guidelines • Have the correct specifications been included on the quote? • If accepted, is there a purchase order sent back to your plant? • Have you ever tried to collect/get paid for a job that has no PO
To Summarize… • We need to have our arms wrapped tightly around this discipline • It’w the difference between profit/loss • Senior Management in the US Graphic Communications Industry needs to pay more attention to this discipline • Never stop training and educating… • It often keeps the doors open! • Thanks very Kindly!