# Cost Estimating Review Checklist for Manufacturing Quotes

> Source: https://netray.co/tools/cost-estimating-review-checklist-for-manufacturing-quotes
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

A pre-submission review worksheet to catch missing operations, outside processing, scrap allowance, tooling and margin before a manufacturing quote goes out.

## Category

cost-finance

## Industry

Discrete Manufacturing

## Audience

- Estimator
- Sales engineer
- Operations manager

## Tool

**Kind:** worksheet

**Mode:** editable

**Currency:** $

**Columns:**

#### Review area

**Key:** area

**Type:** select

**Options:**

- Scope
- Material
- Operations
- Outside processing
- Tooling
- Scrap and yield
- Overhead
- Freight and packaging
- Margin
- Terms

#### What to verify

**Key:** check

**Type:** text

#### Status

**Key:** status

**Type:** select

**Options:**

- Pass
- Fail
- N/A
- Open

#### Amount in quote

**Key:** estimate

**Type:** number

**Format:** currency

#### Amount missing or at risk

**Key:** missing

**Type:** number

**Format:** currency

#### Adjusted amount

**Key:** adjusted

**Type:** number

**Expr:** estimate + missing

**Format:** currency

#### Owner

**Key:** owner

**Type:** text

**Rows:**

**Area:** Scope

**Check:** Drawing revision, quantity and tolerances match RFQ

**Status:** Pass

**Estimate:** 0

**Missing:** 0

**Owner:** Estimator

**Area:** Material

**Check:** Raw stock includes kerf, bar ends and minimum buy

**Status:** Fail

**Estimate:** 4200

**Missing:** 380

**Owner:** Buyer

**Area:** Operations

**Check:** Every routing step priced: setup, run, deburr, inspect

**Status:** Fail

**Estimate:** 11600

**Missing:** 900

**Owner:** Process eng

**Area:** Outside processing

**Check:** Heat treat, plating and NDT priced with freight and minimum lot charges

**Status:** Open

**Estimate:** 3100

**Missing:** 450

**Owner:** Buyer

**Area:** Tooling

**Check:** Fixtures, gauges and special cutters amortized or charged

**Status:** Pass

**Estimate:** 1800

**Missing:** 0

**Owner:** Tooling

**Area:** Scrap and yield

**Check:** Scrap allowance reflects part complexity and first article loss

**Status:** Fail

**Estimate:** 600

**Missing:** 700

**Owner:** Estimator

**Area:** Freight and packaging

**Check:** Packaging, crating and shipping included

**Status:** Open

**Estimate:** 250

**Missing:** 300

**Owner:** Logistics

**Area:** Margin

**Check:** Margin after adjustments meets minimum approved level

**Status:** Open

**Estimate:** 5400

**Missing:** -1730

**Owner:** Manager

**Totals:**

#### Quote amount

**Key:** estimate

**Agg:** sum

**Format:** currency

#### Net amount missing or at risk

**Key:** missing

**Agg:** sum

**Format:** currency

#### Adjusted amount

**Key:** adjusted

**Agg:** sum

**Format:** currency

**Summary:**

#### Net adjustment as percent of quote

**Key:** risk_pct

**Expr:** if(gt(sum_estimate, 0), sum_missing / sum_estimate * 100, 0)

**Format:** percent

**Description:** Positive means the quote is understated by this share.

**Primary:** true

#### Review lines

**Key:** rows_count

**Expr:** count

**Format:** integer

**Notes:** Enter the amount in your quote against each review area and any missing or at-risk amount you find. Use a negative number to show a margin cushion or an overstated line. The sample rows show a typical review. Replace them with your own lines.

## Content

**Intro:** This cost estimating review checklist helps a second person check a manufacturing quote before it is submitted. It focuses on the things estimates most often miss: unpriced operations, outside processing, scrap, tooling, freight and margin. Edit the rows, record what is missing and export to Excel.

**Sections:**

#### How to use the review worksheet

**Body:** Give the reviewer the RFQ, drawing and estimate. For each row, check the item, set a status, record what the quote includes and any amount missing or at risk. The worksheet adds the adjustment and shows the net change as a percent of the quote. If the net adjustment is more than a few percent, re-price before sending. Add your own rows for customer-specific requirements.

#### The areas estimates most often miss

**Body:** Estimators usually capture machine run time well and forget the surrounding costs. Reviewers should specifically look at the following, because each can erase margin on a short lot.

**Bullets:**

- Setup, first article and inspection time, especially on small lots
- Outside processing minimum charges, freight and turnaround
- Raw material minimum buys, kerf and bar remnants
- Scrap and rework allowance tied to part complexity
- Tooling, fixtures, programming and gauge cost
- Packaging, certs, documentation and shipping

#### Reading the result and checking margin

**Body:** Margin is only meaningful after the adjustments. A quote showing 20% margin that carries 6% of missing cost is really a 14% margin job. Compare adjusted cost with price and your minimum approved margin, and compare against similar past jobs. After the job ships, compare estimate with actual costs and feed the difference back into your rates and scrap factors.

#### Using ERP history in the review

**Body:** The strongest check is history: how long did similar parts actually take, and what was the real scrap and outside processing cost? Pull actuals from job costing in your ERP rather than relying on memory. A private AI layer on an on-prem ERP can compare a new estimate against similar past jobs and flag where the quote is thin, without sending part data outside your network.

**Cta:** Netray can add a private AI layer to your ERP that compares each new estimate with actual costs from similar past jobs, running on your own servers.

**Faq:**

#### What should be checked in a cost estimate review?

**Answer:** Scope against the RFQ, complete routing with setup and inspection, material with yield, outside processing, tooling, scrap, packaging and freight, overhead rates and the final margin. Also check terms such as lead time, validity and payment.

#### Who should review a manufacturing estimate?

**Answer:** Someone other than the estimator, such as a process engineer, operations manager or experienced estimator. A fresh reviewer is more likely to catch missing operations and unrealistic cycle times.

#### How much scrap should an estimate include?

**Answer:** It depends on the part, material and process, and should come from your own historical yield data. Complex parts, exotic materials and first article lots need more allowance than simple repeat parts.

#### How do I improve estimate accuracy over time?

**Answer:** After each job compare estimated and actual hours, material, outside processing and scrap, then update standards and review rows. Tracking variance by part family quickly shows where estimates run thin.

## Search terms

cost estimating review checklist, quote review checklist manufacturing, estimate review worksheet, manufacturing quote checklist, pre submission estimate review, estimating mistakes checklist, quote margin review, job quote verification

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