img Costimator® Reveals Real Manufacturing Part Costs

Ideal Supplier Screen shows time and cost per operation to make a part.


This article debunks 5 myths surrounding cost estimating for manufacturing.

FOR IMMEDIATE RELEASE (May 20,2003) — (West Springfield, MA) - MTI Systems today has released its new Costimator OEM Software, a powerful program designed specifically for OEMs. The system, used by many Fortune 500 Companies worldwide, allows OEMs to realize significant savings by revealing true part costs for all types of manufacturing applications, including machining, fabricating, and assembly.


Purchased-Part Cost Savings

case study

The program enables OEMs to justify to suppliers what they expect to pay for parts and why. At the heart of Costimator® OEM Software is an innovative program called Shop Rate CalculatorTM (SRC), the first of its kind to be offered to industry. SRC takes actual labor rates, along with several default factors, to produce accurate supplier shop rates. The SRC database comes loaded with labor rates for the entire U.S. as well most countries worldwide. By combining shop rates with accurate, detailed manufacturing times, OEMs can obtain the information they need to negotiate lower purchased-part costs.

Mr. David LaJoie, MTI Vice President, reports; " Today, 80% of our inquiries are from OEMs looking to use our software to justify the pricing they are receiving from their suppliers. They have reported very impressive cost reductions on purchased parts, sometimes as high as 50%."

In addition to purchased-part savings, Costimator OEM has many other cost /efficiency benefits such as the ability to compare designs to determine the most functional way to manufacture a new part, or to analyze how various manufacturing processes effect productivity and profitability. The system also allows "make vs buy" decisions to be made, enabling manufacturers to analyze in-house capabilities as compared to their suppliers. These features promote increased efficiency, lean manufacturing techniques and even improved supplier relations. For more detailed feature information, refer to the end of this release.

Fast R.O.I. and minimal ramp-up time.

Costimator OEM is easy to use and comes pre-loaded with thousands of industry standard time / cost elements as well as three estimating levels: detailed (by operation), feature-based (part features) or configurator (part families). This flexibility and built-in knowledge base allows immediate use, in most cases resulting in a 3-6 month return on investment (R.O.I.)

MTI Systems Inc. is a world-leader in the development of innovative cost-estimating software and services, providing competitive-edge solutions for manufacturing since 1982. For more information on Costimator® OEM, contact Dave LaJoie at MTI Systems, 1111 Elm Street, Suite 6, West Springfield, MA 01089, 413-733-1972, or visit

Further Product Details

Design For Manufacturing
In addition to purchased part cost savings, Costimator® OEM enables design engineers to create the most functional and cost-effective part design by allowing them to quickly determine how changing a design element will effect manufacturing time and cost. Cost savings as high as 15% are being realized in this area.

In-House Manufacturing
In-house manufacturing costs are also reduced by allowing estimators to quickly analyze how various manufacturing processes, tooling, and material changes will effect production time and cost. The program outlines the necessary setup, tooling, machine times and more, producing a complete, detailed process plan. The result is a lean manufacturing plan that increases productivity and profitability.

Make vs. Buy Analysis
Costimator® OEM permits manufacturers to evaluate whether a part can be made more cost-effectively in-house or by a supplier. It allows a company to analyze its in-house capabilities versus those of a supplier's, enabling them to make a cost-effective make- versus-buy decision.

Special Costimator® OEM Features
Costimator OEMs IQ Builder™ Database is the engine that drives the parametric estimating functionality within the software. It allows storage and retrieval of data into an estimate using a linear calculation (list method) or a regression analysis (chart method).

Within a millisecond, the database finds the curve that best fits and calculates the time and cost.

CADTrax™ is a drawing interpreter that supports over 30 different raster and vector file formats. The program allows quick and accurate part calculation of dimensions (distance, area, and volume), speeding up the estimating process.

The Plant/Supplier Database ties labor rates, material costs, and purchased-part costs to specific plants/suppliers, allowing instant comparisons of part costs at different in-house or supplier locations.

Costimator® OEM can front-end an MRP or ERP system, resulting in significant time cost savings. Data can also be pulled into the software from MRP/ERP systems, producing real-time cost information on material and purchased-part costs that will make cost estimates even more accurate.

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"Costimator is an integral part of our best-in-class technologies. We use the system to estimate the time and cost to manufacture precision-engineered components and assemblies for aerospace, power generation, defense and other advanced technology industries. We require estimating software that is easy to use and works in every facet of our operations; from fabrication to five-axis machining. Our engineers working along with process technicians and toolmakers rely on Costimator's speed, accuracy, and consistency to win orders and ensure profitability."

- Dave Cybart, Engineering and Tooling Manager, Rich Technology International

Estimating Software