The value of estimating

January 10th, 2010

Guess what? The cute little 8 year old girl in our neighborhood came up all wide eyed and excited and said “Scotty, scotty (her dad told her I am a Scot) “guest what” I just saw?” I looked at her and noted (1) she came from the vicinity of her uncle’s house and (2) that she was more excited than normal. Since I knew she is afraid of big animals, I said “You saw a rhinoceros on the roof of your uncle’s house.” She said, oh, don’t be silly.”

We make guesses or estimates every day, in many cases without even realizing that is what we are doing. Making an estimate to check reasonableness is a valuable tool, to save money and/or to keep one out of trouble. For example if you go into the cafe and order two hot dogs and a chocolate shake, and the waiter wants to charge you $14.73, I hope while you are waiting you have estimated what you are probably going to have to pay for this junk food. If you are like me, you have already made a “rough estimate” or guess of what to expect. What is a reasonable amount? The hot dogs are maybe $1.65 each or around $3.00 and change and the shake maybe $2.82 depending on size. Tax at 7% may run the bill up to somewhere between $5.00 and $7.00. So you quite rightly buck on the $14.73

Our electronic manufacturing services business, Global Manufacturing Sevices, requires us to constantly fine tune our estimating skills. We quote jobs using a very good set of spread sheets that aids us in the task. We go out to our suppliers to get parts cost. We count parts on the bill of materials (BOM) and try to get an idea (estimate) of how much labor it will take to assemble the circuit boards. We add our known overhead and come up with a figure, but then we run a reasonableness test to see if it makes sense. We compare our price with that of other similar circuit boards we have built. We ask our selves what we can reasonably charge if we filled up the factory with 100% of this product. No one technique gives us the final answer, but we usually come up with a pretty good estimate of what the cost should be.

I went for the rhinoceros ladder, but when I got to her uncle’s house down the street, a water buffalo had slid down the roof of the house and had fallen through the roof of the porch onto the deck below. Well, at least my guess was partly right. It was a large animal!

GMSWW can do these things

October 5th, 2009

We are sometimes asked what type things can we do at our factory in West Jefferson, North Carolina.  I have briefly listed the primary items below.

RoHS, I.e. lead free assemblies with no up charge or leaded assemblies if that is required..

KanBan and order fulfillment for delivery to you for your just in time requirements.

Electromechanical assembly including light press work and light welding.

Full “box build” which works well when you would like us to put your finished goods on our shelf and then ship direct to your customer as you require.

Excellent MRP system to interface with your MRP system for low error rates.

Excellent, modern equipment with skilled operators to operate and manage assembly. We’re able to assemble very large SMT boards: 20 inches by 24 inches.

Great materials purchasing department to source components from around the globe.

Serious about ISO quality without the chaff and cost associated with lesser quality systems.

Employees with great work ethic, and always eager to get it right.

Reliable, honest customer service that makes the best look mediocre.

Fast quoting with your circuit board Gerbers and Bill of Materials.

Our low overhead assures you of competitive pricing.

I hope that you will soon let Global Manufacturing Services, Inc., GMSWW quote a project for you

Hiring too Early May be a Mistake

August 6th, 2009

As the recession recedes a bit, it is tempting to go out and hire a few extra workers to take care of a spat of orders.  But because this recession may go on for awhile, it likely makes more sense to contract out some of your electronic or electro-mechanical assembly work to companies like Global Manufacturing Services, Inc. in Western, North Carolina, and wait and see if the uptick is going to be sustainable.  We can quickly quote your work, set up the project in our fast turn factory all at a good price.   if you get repeat orders then we can continue to do the work or maybe then it will be time to call back or put on a few people.

Circuit board prototyping necessary for new development

November 7th, 2008

Before one introduces a new product, several stages of researh and development are necessary.  First someone has to come up with an idea for a product that meets some perceived need or want.  Then the idea has to be researched to be sure that the idea can be reduced to practice without violating someone’s patent.  Once that hurdle has been overcome, then the idea has to be put to paper to get some idea of cost and estimated time for product introduction.  More in next post.

Global Manufacturing Services, Inc., your first stop for prototyping.