Reference no: EM133207211

Introduction

MX451 "Industrial Specialization" is about exposing students to Industry (reality). In school we learn "how to learn" and where "to go" for information. School is just the start of your education. At some point in your career you will have to do something you have never seen or know little about. You will have to think it through, come up with a solution with little or no help, and be confident in your decision.

This assignment will:

1) Give you exposure to real life.

2) Make you think and find your own direction and approach.

3) Do something most of you have never done before but will have to at some point.

4) Put yourself into a situation that you will find yourself in your career.

The Assignment

Your boss has handed you a set of drawings for the production of one welding fixture. Provide an Estimate for the production of one finished welding fixture for a possible new client. Give the client your best price but at the same time don't lose money on the job.

1) Put together a spreadsheets using excel detailing line by line the costs and a final sum to produce the welding fixture (detail all your costs). Include all your assumptions and thought processes.

2) Use a shop labour rate of $80.00 per hour for your labour figures.

3) Use the internet to price out all your material costs. Take note of material specifications for the job when pricing out materials.

4) You will have to determine production times for the parts and final assembly then multiply that by the shop rate to determine your labour costs.

5) Are you going to assign markup for materials? If so, how much?

6) Don't forget time is money. It takes time to do the estimate. If it takes you 5 hours at $80 per hour to do the estimate and you only make $160 on the actual job, that is a financial loss. There are lots of things to take into consideration. Detail them all. Show your thought process.

7) There is no "right" or "wrong" answer. The "right" or "wrong" answer doesn't get you the job. The best price gets you the job. But the best price may also cost you if you sell yourself short.

8) Cost the job as 1 piece and also a job of 50 pcs at a price per piece. Never a lot price.

9) The estimate you give the customer should be short but well informed of why you are charging what you are charging

10) Put the estimate on 2 spreadsheets

1. Your total process on both 1 piece and 50 pieces

2. The estimate you are going to give the customer on both 1 piece and 50 pieces