Estimating Software Provides Consistency to McNally Industries

McNally Industries Case Study

The Client

Effective Cost Estimating Software: About McNally Industries Since 1942, McNally Industries, LLC has served the United States Department of Defense and the world’s largest prime contractors with hydro-mechanical and electro-mechanical systems, as well as, complex, precision-machined components for critical defense and aerospace applications. McNally Industries, LLC is a full-service manufacturer providing product design and testing as well as build-to-print manufacturing.

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The Problem

As a defense contractor, McNally Industries, LLC frequently finds itself bidding on various government contracts of which are time-sensitive. Quotes need to be timely, accurate and above all else – consistent. Prior to deploying Costimator, McNally Industries, LLC struggled to meet all three of those benchmarks.

“Our estimating was based on machining experience and the cost estimate was put together in a spreadsheet file,” reports Nick Phernetton, Estimating Engineer, McNally Industries, LLC. “The primary issue became inconsistency with the estimates. Since each person has a different experience with different processes and machines, it was a real challenge to maintain consistent cost profiles.”

The result was a myriad of missed opportunities to acquire contracts that would have otherwise been a sensational fit for McNally Industries, LLC and their business. In order to address the issue, the company needed a solution that would take the subjectivity of the user out of the equation and increase the speed with which they could respond to the government and other customers.


How Costimator Helped

McNally Industries, LLC implemented Costimator in January of 2011 and since then have seen measurable improvements in their day-to-day operations including:

  • Faster turnaround times on estimates
  • More accurate and objective estimates
  • More consistency in pricing across the board
  • A fully customized system that fits the unique demands of McNally’s business
  • Centrally stored data that is more accessible than ever before.

“We had initially chosen Costimator because we wanted a centralized system that removed the subjectivity out of the process,” recalled Phernetton. “Not only did it do that, but the system had so many variables in it that it allows us to customize the system to more closely fit our business needs. It’s made our cost estimating process faster, more accurate and more consistent than it’s ever been. We are very happy with the results.”

Nick Phernetton, McNally Industries, LLC

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