Page 22 - MetalForming January 2013

Product-Cost Management
Speeds Response Times
...and business growth at Steel Fabrication Inc., enabling the metalforming and fabricating company to respond more efficiently to customer requests for quotes, respond to more requests overall, and immediately determine whether or not a job fits into its “sweet spot.”
than the lowest possible quote. It’s not always about the best price; it’s about the best combination of price, value and reliability.”
SFI provides contract design, devel- opment, supply and value-added serv- ices for medium- to heavy-gauge com- ponents to a select group of original equipment manufacturers in the agri- cultural, automotive, construction, industrial, transportation and defense industries. The company employs more than 600 skilled professionals among its two plants. Combined, the facilities house more 1-million sq. ft. of state-of- the-art production space dedicated to steel fabrication. The company offers a full spectrum of operations, including press-brake bending and rollforming, coil processing, laser cutting, metal stamping, welding, machining, pow- der-coat painting and assembly.
Streamlining Estimating
Like most metalforming and fabri- cating companies, for decades SFI’s estimators used its own unique blend of cost calculators, spreadsheets and off-the-shelf cost-management tools to evaluate RFQs and generate quotes. In most cases, SFI’s cost estimators had to analyze a series of 2D drawings and then add in each different attribute, run rates, and part and labor costs. A big project with hundreds of different part numbers could take weeks or more to quote.
Also, in some cases SFI would receive 3D models from customers, which required that engineers take the time to transform the models into 2D prints. This could create a lot of unnec- essary work and extend the quoting
For any contract manufacturer, accurate and timely project quot- ing represents a critical success factor. It can make the difference between winning and losing business, and making or losing money.
Among the medium- to heavy- gauge fabricated- steel products manufactured at Steel Fabrication Inc. are these oil pans for locomotive engines.
“Response time is critical,” says Bill Lerman, president of Steel Fabrication Inc. (SFI), with plants in Memphis, TN, and Conway, AR. “Most customers look for a quote that’s in budget with a sup- plier they can trust and count on, rather
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MetalForming/January 2013
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