Quoting & Promising

Pricing a Quote From the Schedule in EDGEBIC

User Solutions TeamUser Solutions Team
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8 min read

EDGEBIC prices a quote from the schedule the simulation just built, so the price is anchored to the same finite capacity plan the shop will run. In EDGEBIC by User Solutions, labor cost comes from the allocated work hours multiplied by each work center's rate, material comes from the routing's material steps, and markup turns the total into a unit price. Because the cost is derived from the simulated schedule rather than a spreadsheet guess, it reflects the real routing, the real hours, and the real rates. A manual override sits on top for the costs no schedule can know.

Cost comes from the schedule, not a spreadsheet

When you simulate a quote, EDGEBIC runs the real scheduling engine against your current capacity, produces a schedule for the quoted job, then reads the cost off that schedule. This is the important shift: the price is not typed in or estimated on the side, it is computed from the plan the shop will actually execute.

The quote simulation allocates work hours to work centers step by step. Those allocations are the raw material for pricing. Every hour on the cost sheet is an hour the engine actually placed on a machine, in a shift, against real capacity.

Labor: work hours times rate

Labor is the sum, across every work center in the simulated schedule, of allocated work hours multiplied by that work center's hourly rate.

Two rules govern the rate:

  • Per-step rate wins. If the routing step carries a labor rate for that work center, EDGEBIC uses it. This lets one machine cost differently depending on the operation.
  • Work-center rate is the fallback. When the step has no rate, the work center's default rate applies.

If both are zero, the step prices at $0.00 silently. This is the single most common cause of a quote that looks too good, so every production work center should carry a rate.

Work hours, never wall-clock hours

The hours that drive labor cost are work hours, not the calendar span between start and end. A job that starts Friday afternoon and finishes Monday morning spans roughly 66 clock hours but may hold only six hours of real work. EDGEBIC sums the allocated work hours from the schedule, so the labor line reflects labor content, not the nights and weekends the machine sat idle.

This is why the estimated hours on a quote can look much smaller than end date minus start date. That is correct. The date span includes queueing behind other jobs, shift boundaries, and holidays; the work hours are what the operator and machine actually spend. Costing from the span would inflate the quote several times over.

Material: routing steps, then a fallback

Material cost comes from work-center steps flagged as material type in the routing. If a routing has no material-type step that produced a cost, EDGEBIC falls back to the product's unit cost multiplied by quantity.

The fallback is a safety net, not the preferred path. It prices only the end product's own unit cost and misses the material inside a multi-component product. For anything with a real bill of material, model material as material-type steps so the cost is complete.

Note also that work hidden in sub-assemblies is rolled in. If the quoted product references a sub-assembly, that sub-assembly's own routing hours, labor, and material roll up into the quote's totals, recursively and respecting the per-step quantity multiplier. A product whose work lives mostly in sub-assemblies no longer reads as zero hours.

Markup turns cost into price

Effective cost is labor plus material (or the manual override, covered below). Markup converts it to a unit price:

unit price = round( effective cost x (1 + markup% / 100) / quantity , 2)

The default markup is 25 percent. Auto-markup fills the unit price only when it is currently zero, which protects a price a planner typed. Once you set a price by hand, later simulations never overwrite it. To re-derive after a cost change, clear the price and re-simulate, or use Apply Markup to Unit Price.

A worked example

Acme wants 200 units of Widget-A. The simulation allocates:

Work centerHoursRateCostCategory
Saw-120.5$40$820Labor
CNC-Mill-1101.0$60$6,060Labor
Assembly-130.0$35$1,050Labor
Material (fallback: $6.50 x 200)$1,300Material

Labor totals $7,930, material $1,300, so estimated cost is $9,230 on 151.50 work hours. With the default 25 percent markup and quantity 200:

unit price = 9,230 x 1.25 / 200 = $57.69

Had the planner typed $85 before simulating, that $85 stands, because auto-markup only fires on a zero price. At $85, total price is $17,000, profit is $17,000 minus $9,230 = $7,770, and margin is 45.7 percent, painted green in the grid.

For how the dates in that same run are produced, see how a quote simulation produces a realistic date, and for every field the run fills in, see reading the simulated quote result field by field.

The manual override for costs no schedule knows

Some costs live outside the routing: tooling wear on a hard alloy, an expected scrap allowance, freight on an oversized part. The manual cost override is the right tool for these. Enter the all-in cost basis and EDGEBIC computes profit and margin from it, while keeping the calculated labor and material split on the record for later variance reporting.

A rush example: a 50-piece casting simulates at $17,400 (180 hours, $14,400 labor, $3,000 material). The planner knows tooling wear and scrap add $2,000, so sets the override to $19,400. Margin now computes from $19,400, but the $14,400 and $3,000 split is still stored, so the quote-versus-actual report can later show exactly where the estimate held.

The discipline: use the override, not a fudged unit price. A hand-bumped price hides the reason forever; the override keeps the calculated split intact and the reason visible.

Prices are a snapshot: refresh when the world moves

Quote costs are point-in-time. If work-center rates or capacity change after you simulate, the quote view shows a banner asking you to refresh and re-run before sending. Do what it says. A 90-day-old cost is fiction, which is why the default quote expiry is 30 days.

The takeaway

Pricing a quote from the schedule ties the number you send to the plan the shop will run. Labor is real work hours times real rates, material comes from real routing steps, sub-assembly effort rolls up, and markup derives the price while never clobbering one you typed. The manual override handles the costs a schedule cannot see, and keeps the calculated split for variance reporting. Put rates on every work center, model material as material, and the quote's margin will mean what it says. See the full quoting flow in the EDGEBIC quoting guide, and the product in full on the EDGEBIC platform overview.

Expert Q&A: Deep Dive

Q: Our margins on machined parts always look too healthy, then the job loses money. Where does the pricing go wrong?

A: The most common cause is a missing work-center rate. EDGEBIC prices labor as hours times the work center's rate, and if a production work center has a rate of zero, that step silently prices at zero dollars. The hours are real, but the cost line is blank, so the quote looks profitable and the real job is not. Check that every production work center carries a rate. The second common cause is relying on the material fallback, which prices only the end product's unit cost times quantity and misses multi-component material. Model material as material-type steps in the routing so the real material content is priced.

Q: A rush job has real extra cost we cannot model in rates: tooling wear and expected scrap. How do we price that without faking the numbers?

A: Use the manual cost override rather than a hand-bumped price. Simulate the job so EDGEBIC rolls up the honest labor and material split, then enter your all-in cost basis, say the simulated $17,400 plus $2,000 for wear and scrap, as the override of $19,400. From then on profit and margin compute from your $19,400, but the calculated labor and material split is still stored, so when actuals come in you can see exactly where the estimate held and where the extra went. A fudged unit price hides the reason forever; the override keeps it on the record.

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