Step 1. Part Information
Part weight (lb.) The individual parts' weight per unit.
Annual number of parts The number of parts that will be produced in a year.
# Shipments per year The number of times parts will shipped to the vendor each year.
Part cost before treatment The amount of money invested in the part before it gets to the vendor.

Step 2. Financial Considerations
Annual % rate For Cost of Inventory The % cost of money used. If unknown, as guide, use current lending rate.

Step 3. Vendor Variables Vendor 1 Vendor 2 Vendor 3
Heat treatment, per part The per unit price that the vendor has quoted.
Cost of setup or tooling Here, use any "one time" cost that the vendor requires.
Distance (roundtrip mi.) This is the roundtrip distance that the parts will travel to the vendor.
$ / mi./ shipment cost The cost of shipping parts can vary greatly. Use a $ per mile number--as a guide use $1 per mile.
Total Transit Time (days) The numbers of day the part will be in transit.
Job Turn Time (days) The number of days the vendor will take to produce the parts.
% of On-time Delivery Here, enter the % of times a vendor meets delivery. If unknown, use 90%.
Total of original # defective Here, enter the number of items a vendor has scraped. If unknown leave blank.

Step 4. P.D.Q. Analysis Vendor 1 Vendor 2 Vendor 3
Price [Sub-Total]
This is the total: part treatment cost together with any extra items.
Delivery [Sub-Total]
This is the total: shipping, inventory carrying, and missed deliveries*.
Quality [Sub-Total]
This is the total: loss of "not to spec" parts*.

P.D.Q. Total Cost
This is a closer, more comparable estimate to the costs involved.

* The cost associated in this area does not include any provision for significant losses due to poor quality or late deliveries.
This heat treat cost estimator is to be used as a guide only. Zion Industries Inc. makes no warranties or assumes any liability for its results.
Back To Top