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1961 Digital TransformX

Industry

Every job is new, so nothing is ever learned

In a made-to-order workshop no two jobs share a bill of materials, so cost history never accumulates. The estimator prices from memory, the shop cuts what it can, and whether the job made money is a question nobody answers.

What the day actually looks like

  • The estimator prices a kitchen from a client sketch in an hour, because the enquiry is one of nine that came in this week.

  • Shop drawings go to the client for approval, come back marked up twice, and the shop has already cut the carcass panels.

  • The rack behind the saw fills with offcuts everybody intends to use and nobody records.

  • A section arrives from the powder coater with a scratch, and the replacement is remade without anyone raising a cost.

  • The fitters go to site after the shop is finished, find the opening is out by fifteen millimetres, and the piece comes back.

Where it usually breaks

  1. Quoting from memory

    The estimate is a number the estimator believes, built from the last similar job and adjusted by feel. When he is on leave, quoting stops. When he is wrong, nothing tells you until the job closes — and because nothing is fed back, the same error is priced into the next quotation at the same rate.

  2. No bill of materials to reuse

    Every job is bespoke, so the standard argument is that a BOM is pointless. The result is that cutting lists live in the foreman's notebook, purchase quantities are eyeballed, and the material actually consumed on a completed job cannot be recovered even a week afterwards.

  3. Yield and offcuts unmeasured

    Sheet goods and profile lengths are bought whole and used in pieces. Nesting decides your material cost more than the supplier price does, but the yield is never recorded, so nobody knows whether the shop wastes eight per cent or twenty-two. Offcut stock is real inventory treated as scrap.

  4. Rework absorbed silently

    A panel is remade because the drawing revision was superseded. A frame is rewelded because the fit was wrong. The labour and material are consumed by the same job number, so rework never appears as its own figure and the cause is never traced back to whoever approved the drawing.

  5. Installation is nobody's cost

    The shop reports the job complete when the goods leave. Then two fitters, a van and three site visits are spent making it fit. Those days land in a general labour cost, so an item that was profitable in the workshop and ruinous on site looks identical to one that went in first time.

How the work runs

  1. Estimate as a structured record

    We turn the quotation into a costed structure — panels, profiles, hardware, finishing, shop hours, fitting days — rather than one number. It takes the estimator no longer, because the recurring assemblies are held as templates he adjusts. The quote then becomes the baseline the job is measured against.

  2. Drawing revisions with authority

    Shop drawings are versioned against the job, with the approval and its date attached. Production releases against a specific revision only. When a revision is superseded after release, the system raises the change as a variation rather than letting it quietly become rework.

  3. Cutting, nesting and yield

    Cutting lists are generated from the job structure and returned with what was actually consumed, including offcuts booked back into a length-and-grade store. Yield becomes a number per job and per material, so a bad nest is visible as a cost rather than a pile behind the saw.

  4. Rework booked separately

    Rework gets its own booking against the job with a reason and a responsible stage: drawing, cutting, welding, finishing, site measurement. It still costs the job, but it is also counted on its own, which is the only way the recurring cause is ever found.

  5. Site fitting closes the job

    The job stays open until installation is signed off, with fitter days, transport and snag visits posted against it. Only then is the margin calculated, and that margin — not the workshop figure — is what returns to the estimator for the next quotation.

What changes once it holds

  • A quotation can be reconstructed and defended six months later.
  • The margin figure includes fitting, transport and snagging.
  • Material yield is a number per job, not an impression.
  • Offcuts are stock that can be found and used.
  • Rework is counted separately and traced to its stage.
  • A new estimator can quote without inheriting somebody's memory.

Bespoke does not mean unmeasurable

Workshops that make one-off items usually conclude that structured costing belongs to serial manufacturers. The conclusion is wrong, and it is expensive. No two joinery jobs share a finished product, but they share components: a drawer box, a door leaf, a welded frame, a metre of edging, an hour on the spray line. Those repeat constantly. Build the library at that level and every bespoke job becomes an assembly of things you already know the cost of, plus a small residue that is genuinely new. The estimator stops guessing the whole number and starts guessing only the part that has never been made before.

The two places margin actually leaves

In fabrication, margin leaves through material yield and through site. Yield is decided at the saw and the plasma table by how the nest was laid out, and a shop running twenty per cent waste against a competitor at ten has lost the tender before the price is written. Site is worse, because it is invisible: the shop declares the job done, and the days spent making it fit are absorbed into a general overhead nobody attributes. Until both are measured per job, cost control is confined to negotiating with the steel supplier, which is the smallest lever available.

Approval, revision and who pays for the change

Almost every dispute in this trade traces to a drawing. The client approved revision B, the shop cut from revision A, or the client changed his mind after approval and expects the change free. What settles it is not a better argument but a dated record: which revision was approved, by whom, on what date, and what had already been released to production when the change came. With that in place, a client change becomes a priced variation as a matter of routine rather than a confrontation. Without it, the workshop absorbs the cost and calls it customer service.

Questions we get asked

We make one-offs. Is a BOM really worth the effort?
Not at the finished-product level. At the component level it pays for itself quickly, because doors, frames, drawer boxes and welded sub-assemblies repeat even when the finished item never does. We build the library from your last two hundred jobs, not from theory, so the templates match what your shop actually makes and the estimator recognises them.
Will the shop floor have to enter data all day?
No. The shop confirms against a printed or on-screen cutting list: quantity made, quantity scrapped, offcut returned. That is three numbers at the end of an operation, not a running log. Machine hours come from the schedule rather than from anyone typing. If a step needs a keyboard on the shop floor, we have designed it wrong.
Can it handle our CNC and nesting software?
Usually, by exchanging the cutting list and the achieved yield rather than replacing the nesting engine. Your nesting software is better at nesting than any ERP, and we do not pretend otherwise. What we take back is what was consumed and what was returned as offcut, which is the part the nesting tool never posts to your cost.
How do you cost a job that is still on site?
As committed cost plus posted actuals, with fitting days accrued at your own rates against a planned duration. The job shows an expected margin that tightens as visits are booked. It is not final until sign-off, and we mark it that way rather than reporting a workshop figure as though it were the result.
Our estimator refuses to change how he prices. Then what?
That is common and it is not irrational — he is fast and he is usually right. We do not take the pricing decision away from him. We record the structure underneath the number he already produces, and feed him the closed-job actuals afterwards. Most estimators start adjusting their own rates once they can see where they were wrong.

Tell us what is not working

Send one line about what is going wrong. On the first call we will tell you whether it is a system problem, a process problem or a governance problem — and which one to fix first. That call is free and it is not a sales meeting.

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