DVP40113 : CHAPTER 1

What is Estimating?

• is a process used to evaluate the financial impact of

  potential orders on a Printing company

• are people within a company who

  determine job costs

• Estimates laborand material costs of printed matter on sales order

• Utilizing rate cards and supplier bids in order to provide pricing estimates of cost and margin

Cost in Print Job Production

• Paper,Ink,Film,Wire-O,Finishing Material

• Spoilage,Design Activity,Pre-Press CTP,Post Press (Binding, Coating etc)

• Material Cost,Machine And Labor Cost,Processing Cost,Miscellaneous Cost

• Transport,Hand Work,Packing,Taxes

Any cost which does not change with the volume of output, even if the company had no work at all.

• Variable Cost

• Fixed Cost

• Net profit

• Return on Investment

The estimator duties

• He must be alert to changes in material prices and labour, and aware of all costs related to the printing operation and production.

• He has tounderstand of printing operation. (essential elements in the background.)

• He has toestablish a reasonable selling price. (all fixed, variable other costs must be recovered).

• Provide accurate, timely, and comprehensive estimates for sales order

Variable Cost

• Any cost which does not change with the volume of output, even if the company had no work at all.

• The amount left after all operating expenses for that period have been considered

• Any cost which does increase or decrease directly with the volume of output. The more work printed; the more costs involves.

• The amount paid to an owner of capital, or to an investor, in payment for his releasing of money, machines or property to the business.