Labor Quoting Methods and Formulas for EMS

Introduction to EMS Labor Quoting

This webinar, led by Chintan Sutaria, President of CalcuQuote, dives into labor estimation techniques in the EMS (Electronics Manufacturing Services) industry. The session covers a range of labor quoting methods, debunking myths about a "one-size-fits-all" approach and encouraging participants to adapt these methods to their unique workflows.

The Five Labor Quoting Methods

The webinar outlines five main labor estimation techniques: "Look and Guess," BOM Cost Plus, Price per Part, Price per Classified Part, and Activity Costing. Each method has its pros and cons, with a focus on efficiency and accuracy, depending on the complexity of the project.

Activity-Based Costing: The Popular Choice

Most participants lean towards Activity Costing, which calculates labor costs by assigning time values to specific tasks. This method allows for repeatable processes and easier delegation, offering consistency as businesses scale.

Efficiency Gains and Learning Curves

Two key strategies for optimizing labor costs are efficiency gains and the learning curve. These methods highlight how repetition and scaling lead to significant time and cost reductions, making them essential for high-volume production.

Conclusion

By blending multiple quoting methods and factoring in activity-based models and learning curves, companies can create more accurate, scalable labor estimates. These strategies provide a solid foundation for improving efficiency and keeping costs under control in EMS production.