Biggest Mistakes People Make When Quoting Aerospace Parts

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[aspeaerospaceprecisionenging]

Your're right everything has to be included in the quote, material + setup pieces, material certs and testing (in some cases), setup time, cycle time, fixturing, tooling, FAIRs, inspection, gauges, in some cases ultrasonic cleaning, deburring assembling etc + traceability from start to finish

[RadDadisRad]

Thanks for this quick video, you’re building everyone up and in doing so I believe you will see the same build up by your team and business family.

[nishantmalana]

Hi Titan, cool video, although I was hoping for something along the lines of "labor is X% of the cost and material is Y% and most people under quote the labor component", but I guess that would be a bit of a company secret. Still found value!

[muxallopeniot]

A lot of great information in a short video. Great work guys!

[rowdyrager-]

Working at a new shop they are making high quantities of inconel parts and they are new to these set ups so they are currently making more scrap than good parts.

Very unfortunate but it should be worked out I hope. Makes it hard to be enthusiastic at a new place when they are stumbling.

[ahndeux]

Don't forget, a lot of larger aerospace companies use their own proprietary specs instead of industry specs. Within those specs are buried requirements that may increase the cost of the project tremendously. This may include material certifications, 100% screening, CMM, special cleaning, plating that has to only go to certain certified plating shops. The material has to meet material certification requirements that increases the material cost. The amount of paperwork and tracking of the job also goes up in case they need to verify compliance or track down an anomaly. You also have to maintain those record for a number of years per the contract.

If plating is part of the finished product, I've seen cases where the plating costs is more than the machining costs since there is only two certified vendors. If you add in the ISO 9000 certification and other requirements, the overall cost would need to be factored into the quote. A lot of the larger companies only use certified machine shops and can not send quote to any shop not on their approved list. Making mistakes can affect your grade and cause you to be dropped from the list too.

You better be careful when you read that contract. Some larger aerospace company put onerous terms in their contracts. You can be liable for the death of passengers if the cause was faulty machined part from your machine shop. If 75% of the PO is contract and legalese, you better understand what you are signing.

All these costs are buried and often the cheapest vendor often ends up with the job which can result in a loss of profits.

[stanleeS]

Titan Gilroy.Awesome video.How are you affected by this pandemic?
Where is your shop located?

[Duncanwg]

What PLM/MES software are you using to make those travelers?

[aspeaerospaceprecisionenging]

Hi Titans, we would like to quote some aerospace parts and see if we are competitive

[edgar]

To quote correctly you have to be able to calculate exactly how much it cost to produce something (including design, QC, waste, etc.). How difficult is it do calculate how much it cost to produce something including machines, maintenance, people, and and and? I guess it's even difficult in the hindsight to calculate how much something actually cost from accepting the deal to finishing it.

[stbentoak]

You also need to know what your costs and overhead are, SG&A, and material and services costs. As the one responsible for quoting for my shop as well as all outside sales, , I reviewed all invoices from suppliers both material and outside services to keep my finger on the pulse of what was being charged. I also knew what I could get away with with certain customers. You have to have intimate knowledge of the marketplace and what you customers are willing to pay. Much also depends on the historical rapport and relationship you have built with them over time.. You also have to have the innate ability to look at a part on a print and just "know" how that part should be ran the most efficiently in YOUR shop. My mind was a machining computer.... If you don't have this skill, you are just plain screwed....
Also don't grovel over 30.00 parts, the money is made in the 250.00 each and up category. Separates the basic shops from the truly advanced ones... Finally, never discount the amount of perishable tools consumed when running Hi Temp alloys, When you are, the dollars per hr. better be up at least 60-75% over your basic hourly rate... All my rates were also based on machine age and amortization....

[themechanix]

Hey titan, do you still do parts from customers or do you focus on education?