Machine Shop Estimating and Quoting Software Explained

Machine shops have traditionally relied on manual calculation and years of experience for quoting, tomorrow’s shops rely on software. “Estimating & Quoting” software is a tool that aids estimators to reduce manual steps and transforms outdated spreadsheets into rapid and precise quotes. By automatically analyzing multiple variables like part features, materials, tolerances, tool selections, machine hour rates and labor costs, the software creates quotes in minutes rather than days to respond to requests faster while protecting your time on the shop floor. 

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Calculating accurate estimates and quotes quickly is critical to your shop’s success, as it enables you to win more profitable work. Yet quoting is often a bottleneck that depends on the most experienced members on the shop floor, who are already maxed out. When responding to quotes gets pushed down the list of priorities and about 70% of configure to order manufacturers stating that quoting times take over a day, it results in lost jobs.  

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Estimating and quoting software provides operational benefits to modernize your job shop to scale and secure margins. 

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What is the difference between estimating and quoting

Estimating is calculating a ballpark cost of a part based on production time and core costs related to the production like machine rates or material costs. This requires experience and a thorough understanding of the processes behind manufacturing a part as estimators mentally build out a part in their head to calculate associated time and costs. 

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Quoting builds on top of estimates, compiling the total estimates of different parts and additional costs, lead times, component costs, markups and shipping costs. They are also considered binding in terms of cost within a specified time frame. 

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How Quotes are Traditionally Manually Calculated

Quotes can be calculated using various approaches, and involve multiple people as it considers variables that would involve a machinist, programmer and purchasing agent. However creating estimates based on experience is standard, relying on the lived in knowledge. 

Once they receive a RFQ, they quoted a job by analyzing a 3D model or a 2D print. Based on their experience and their shop, they would think through what kind of tools they would use, types of machines or any additional operations like inspection, programming and set up that would be required to complete the job to gather the time it’ll take to make the part. 

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A few areas that are assessed when developing a quote includes: 

• Design specifications and geometries of the structure and features 
• GD&T to understand the difficulty and complexity of the part
• Tooling to see what would be needed to make the part 
• Machines and whether you would need to switch up the machines partway 
• Materials cost or difficulties in handling that material
• Time allowances such as set up time, lead time and operation time

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When these variables are manually calculated to estimate costs, getting through a single quote can feel gruelling, let alone a growing pile of RFQs fueled by recent reshoring trends.  While precision is crucial to protect your margins, spending days on a spreadsheet only to lose the job to a faster competitor is incredibly frustrating. 

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Why should I consider an Estimating and Quoting Software

When quoting relies solely on your most experienced employees, it drains their valuable time from the shop floor, creating an operational bottleneck. This internal strain is further accelerated by external pressure with the US pushing for more domestic manufacturing. The harsh reality about the tidal wave of RFQs is highlighted in a recent report by Kearny as“CEOs are more committed than ever to reshoring, [but] the domestic manufacturing ecosystem is still playing catch-up”.

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The core of the catch up problem is a widening labor gap. RFQs volumes continue to climb, but the talent pool of experienced estimators is shrinking rapidly. Manufacturers have been feeling the strain for years, with 36% of manufacturers stating it is harder to find the right talent than ever. Those few experienced estimators are now stretched thin across competing priorities. To add to the chaos, custom part buyers are starting to expect the same level of instant responses they do with other areas of their lives, demanding for faster RFQ turnaround. 

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The situation is set up for a classic, costly Catch-22. Delayed bids mean you lose the work entirely, wasting hours of unbillable time spent on estimating. On the other hand, rushed bids lead to pricing errors resulting in winning unprofitable jobs, where you’re paying to do the work. This financial strain forces you to chase even more RFQs, pumping more volume into the same broken bottleneck, accelerating a downwards spiral. 

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Key Challenges in Quoting and Estimating Software

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Busy job shops need easily customizable quoting software that fits their shop’s machines and accelerates quoting turnaround. Software with CAM based estimates are accurate but struggle with quoting speed and AI based estimates may push out fast quotes but are unable to handle completely new complex parts as they rely on historical data. Most software do not capture and reflect the full complexity of machining parts to deliver quotes that are both accurate and fast.  

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What Sets AMFG Apart Among Other Estimating and Quoting Software

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AMFG approaches estimating using a geometric engine that automatically analyzes the 3D model data and combines it with AI driven 2D print analysis, calculating time and cost estimates based on sophisticated algorithms that build a Machining Strategy for that specific part. By working alongside you to customize your shop’s specific tooling, machine capabilities and experience into the software so that once RFQs are uploaded it can pull out the required tolerances and parts to algorithmically calculate run, setup and programming time to calculate quotes. 

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The best approach to digital transformation is combining human expertise with smart automation. AMFG works alongside your team, doing the heavy lifting to lay down 90% of the groundwork in seconds while freeing your estimators from repetitive data entry to focus on making final decisions around the quotes.

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Accurate Quoting from Days to Hours with AMFG

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Since adopting AMFG’s quoting software, Busch Brothers Machining, a quality component supplier, has successfully cut down quoting times from 3 to 4 days to within 24 hours. In growing machine shops that still want to stay lean, implementing estimating and quoting software like AMFG allows them to scale their team’s capacity without additional headcount. 

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Want to learn how it works? Book a demo! 

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FAQ:

How can AMFG’s manufacturing estimating and quoting software help my job shop?

AMFG’s estimating and quoting software provides you with fast, accurate and reliable estimates that helps you speed up your quoting process. 

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How will manufacturing estimating software improve accuracy?

Manual spreadsheets introduce unnecessary risk and inconsistent pricing to your shop. AMFG standardizes your estimating process, eliminating human error and delivering +/-10% quoting accuracy immediately after onboarding. 

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