{"id":62,"date":"2021-03-17T18:02:50","date_gmt":"2021-03-17T18:02:50","guid":{"rendered":"https:\/\/www.mtisystems.com\/blog\/?p=62"},"modified":"2024-04-15T22:06:58","modified_gmt":"2024-04-15T22:06:58","slug":"how-accurate-is-cost-estimating-software","status":"publish","type":"post","link":"https:\/\/www.mtisystems.com\/blog\/2021\/03\/17\/how-accurate-is-cost-estimating-software\/","title":{"rendered":"How Accurate Is Cost Estimating Software?"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\"><strong><em>A Seasoned Expert Determines How the Accuracy of Cost Estimating Software is Legit<\/em><\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"431\" height=\"287\" src=\"https:\/\/www.mtisystems.com\/blog\/wp-content\/uploads\/2021\/03\/Picture1.png\" alt=\"How Accurate Is Cost Estimating Software\" class=\"wp-image-63\" srcset=\"https:\/\/www.mtisystems.com\/blog\/wp-content\/uploads\/2021\/03\/Picture1.png 431w, https:\/\/www.mtisystems.com\/blog\/wp-content\/uploads\/2021\/03\/Picture1-300x200.png 300w\" sizes=\"auto, (max-width: 431px) 100vw, 431px\" \/><\/figure>\n\n\n\n<p>As a Sales Director at a Cost Estimating Software company, I get the question, \u201c<strong><em>How accurate is your cost estimating software<\/em><\/strong>?\u201d quite often. The simple answer is that the software is always as accurate as the data that is imported into the software. Not every machining center machines at the same rate, not every laser cuts at the same rate, and not every press brake bends at the same rate. Since not every company has the exact same equipment, uses the same type of tooling, purchases raw material at the same price or has the same shop rate, no off the shelf cost estimating software will generate perfectly accurate cycle times and costs without some level of data configuration specific to the company using it.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Garbage In, Garbage Out &nbsp;<\/strong><\/h3>\n\n\n\n<p>The main benefits of utilizing cost\nestimating software are increased speed, accuracy and consistency of estimates.\nThese benefits are achieved, in large part, through the use of standardized, formula-driven\nmethods of calculating labor and machine cycle times (rather than relying\nsolely on the opinion, or experience, of an estimator). The accuracy of a quote generated by estimating software is highly\ndependent on the back-end data and formulas that produce the results. If the\nraw data imported into the cost estimating software is garbage, a garbage\nestimate is what you can expect to receive in return. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Take For Example, Estimating Laser Cutting\nTimes<\/strong><\/h3>\n\n\n\n<p>Not every laser machine has the same\ncharacteristics or cut-rate capabilities. In order for any costing software to\ngenerate an accurate cycle time calculation, it first needs to be loaded with\nthe cuts rates associated with the particular laser machine(s) that your shop\nowns. <\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"622\" height=\"487\" src=\"https:\/\/www.mtisystems.com\/blog\/wp-content\/uploads\/2021\/03\/Picture2.png\" alt=\"\" class=\"wp-image-64\" srcset=\"https:\/\/www.mtisystems.com\/blog\/wp-content\/uploads\/2021\/03\/Picture2.png 622w, https:\/\/www.mtisystems.com\/blog\/wp-content\/uploads\/2021\/03\/Picture2-300x235.png 300w\" sizes=\"auto, (max-width: 622px) 100vw, 622px\" \/><\/figure>\n\n\n\n<p>Established cost estimating software companies have\nsolutions that come with out-of-the-box data for the various manufacturing\nprocesses their system support. The better tools will make it easy to modify\nand add to the base data in an effort to dial in the numbers to better reflect a\nparticular shop\u2019s equipment and core competencies. The more advanced systems\nwill enable companies to mass import raw material and purchased item pricing,\nwork center shops rates and customer contact information, most of which is\ntypically stored in their ERP system. The database configuration process is\ncritical to having a software tool that will consistently generate an accurate\ncost estimate for your shop. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>No Two Shops Are The Same<\/strong><\/h3>\n\n\n\n<p>It\u2019s simply not realistic to think that off the\nshelf cost estimating software will be able to generate an accurate estimate\nfor YOUR SHOP until your shop\u2019s data has been loaded into it. The process of\ndoing that, if the software you choose comes with out-of-the-box data, is not\nnecessarily that time consuming. In fact, some software companies provide the\ndatabase configuration service as part of their overall offering. <\/p>\n\n\n\n<p>The good news is, once the configuration process is complete your company now has an estimating system that will increase the speed, consistency and accuracy of its quotes. For most shops, the result is greater quoting throughput, higher RFQ win rates and increased sales and profits.<\/p>\n\n\n\n<p>Learn more about How Accurate <a href=\"https:\/\/www.mtisystems.com\/cost-estimating-software.html\">Cost Estimating Software<\/a> is by Evaluating Costimator<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Seasoned Expert Determines How the Accuracy of Cost Estimating Software is Legit As a Sales Director at a Cost Estimating Software company, I get&hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[5,3,4,7,6],"class_list":["post-62","post","type-post","status-publish","format-standard","hentry","category-estimating","tag-machine-shop-quoting","tag-machining-estimating-software","tag-machining-quoting-software","tag-manufacturing-estimating-software","tag-sheet-metal-fabrication-estimating-software"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Accurate Is Cost Estimating Software?<\/title>\n<meta name=\"description\" content=\"Learn how accurate cost estimating software is by getting the inside scoop about reality verus expectations when it comes to estimation and quoting tools.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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