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[Video Material] How to Determine Quotation Prices 7: Rework and Unintentional Full Inspection

I will answer the question, 'How should I calculate the estimated price?'

When estimating new products in the manufacturing industry, I believe calculations are based on the "rate" (which may be referred to in various ways such as "processing rate" or "charge," but here we will call it "rate") specific to each company. For newcomers who have just joined the company, there are likely many who say, "In our company, the rate is set at ●● yen/minute, and we calculate estimates based on that, but I don't really understand how that number is determined." To establish the rate, one must know the manufacturing costs. Manufacturing costs vary depending on the processing methods, the machines used, setup time, processing time, and so on. In this document, I would like to examine, using specific numbers, how making adjustments in machining processes and conducting full inspections without realizing it impact manufacturing costs, using the metal processing industry as an example.

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basic information

Video content; 0:00 For those who want to watch this video 0:12 The impact of rework on manufacturing costs 2:20 The impact of 100% inspection on manufacturing costs 3:16 Points to note

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Applications/Examples of results

Gas appliances, air conditioning equipment, medical devices, semiconductor-related items, etc.

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