Printing estimating is a cost-finding procedure for printing management. Estimating typically requires two sequential steps:
The determination of a plan of production to make the product. The assignment of costs using the defined production plan. In the first step, production planning, the estimator (or job planner in large facility) must break the product to be manufactured into component segments, as will be necessary when the product is produced. once this task is completed, the estimator must identify those production segments that can be best completed in this or her own printing plant and determine the segments that can be made more efficiently out side the production facility.
the second step in cost estimating involves the assignment of standard production times and budgeted hour cost factors to decimal the cost that will be incurred in the manufacture of the product. The plan of production is closely followed. The estimator assigns the standard production values, in hours or decimal equivalents of hours,based on preestablished, accurate data representative of plant output. After the standards have been accurately applied for example, the time needed to expose and process a lithographic plate the assignment of cost values using a budgeted hour cost figure is then made. Thus, the cost to make a lithographic plate = estimated time for exposure and development x budgeted hour cost rate. The costs of materials, such as the lithographic plate itself, are determined separately and added to the platemaking cost. The total sum represents the cost to manufacture a lithographic plate for a costomer. Later, top management will add profit to the total, and the selling price for plate making the can be quoted to the costomer.
The formula used for cost estimating is: Material costs + buyout costs + Profit