Manufacturing cost estimator

Description

Manufacturing cost estimators collect and analyse data to evaluate the money, materials, labour and time required for manufacturing processes. They conduct analyses to identify (alternative) cost effective technical designs and production processes. They develop and use methods and tools for cost planning, controlling and analysis. They also perform quantitative and qualitative risk analyses and report on the development of costs.

Other titles

The following job titles also refer to manufacturing cost estimator:

production cost estimator
manufacturing cost recovery technician
estimator
manufacturing cost analyst
manufacturing estimate clerk

Minimum qualifications

Bachelor’s degree is generally required to work as manufacturing cost estimator. However, this requirement may differ in some countries.

ISCO skill level

ISCO skill level is defined as a function of the complexity and range of tasks and duties to be performed in an occupation. It is measured on a scale from 1 to 4, with 1 the lowest level and 4 the highest, by considering:

  • the nature of the work performed in an occupation in relation to the characteristic tasks and duties
  • the level of formal education required for competent performance of the tasks and duties involved and
  • the amount of informal on-the-job training and/or previous experience in a related occupation required for competent performance of these tasks and duties.

Manufacturing cost estimator is a Skill level 4 occupation.

Manufacturing cost estimator career path

Similar occupations

These occupations, although different, require a lot of knowledge and skills similar to manufacturing cost estimator.

cost analyst
equipment engineer
process engineer
quantity surveyor
production engineer

Long term prospects

These occupations require some skills and knowledge of manufacturing cost estimator. They also require other skills and knowledge, but at a higher ISCO skill level, meaning these occupations are accessible from a position of manufacturing cost estimator with a significant experience and/or extensive training.

Essential knowledge and skills

Essential knowledge

This knowledge should be acquired through learning to fulfill the role of manufacturing cost estimator.

Manufacturing processes: The steps required through which a material is transformed into a product, its development and full-scale manufacturing.
Mathematics: Mathematics is the study of topics such as quantity, structure, space, and change. It involves the identification of patterns and formulating new conjectures based on them. Mathematicians strive to prove the truth or falsity of these conjectures. There are many fields of mathematics, some of which are widely used for practical applications.
Cost management: The process of planning, monitoring and adjusting the expenses and revenues of a business in order to achieve cost efficiency and capability.

Essential skills and competences

These skills are necessary for the role of manufacturing cost estimator.

Execute analytical mathematical calculations: Apply mathematical methods and make use of calculation technologies in order to perform analyses and devise solutions to specific problems.
Provide cost benefit analysis reports: Prepare, compile and communicate reports with broken down cost analysis on the proposal and budget plans of the company. Analyse the financial or social costs and benefits of a project or investment in advance over a given period of time.
Assess financial viability: Revise and analyse financial information and requirements of projects such as their budget appraisal, expected turnover, and risk assessment for determining the benefits and costs of the project. Assess if the agreement or project will redeem its investment, and whether the potential profit is worth the financial risk.

Optional knowledge and skills

Optional knowledge

This knowledge is sometimes, but not always, required for the role of manufacturing cost estimator. However, mastering this knowledge allows you to have more opportunities for career development.

Project management: Understand project management and the activities which comprise this area. Know the variables implied in project management such as time, resources, requirements, deadlines, and responding to unexpected events.

Optional skills and competences

These skills and competences are sometimes, but not always, required for the role of manufacturing cost estimator. However, mastering these skills and competences allows you to have more opportunities for career development.

Calculate materials: Determine the amount and the kind of materials necessary to build certain machines or equipment.
Advise on risk management: Provide advice on risk management policies and prevention strategies and their implementation, being aware of different kinds of risks to a specific organisation.
Manage budgets: Plan, monitor and report on the budget.
Read assembly drawings: Read and interpret drawings listing all the parts and subassemblies of a certain product. The drawing identifies the different components and materials and provides instructions on how to assemble a product.
Prepare cost-plus pricing models: Make up cost and pricing models on a regular basis by taking into account the cost of materials and supply chain, personnel and operating costs.
Synthesise financial information: Collect, revise and put together financial information coming from different sources or departments in order to create a document with unified financial accounts or plans.
Read standard blueprints: Read and comprehend standard blueprints, machine, and process drawings.
Accurately estimate work hours: Assess the necessary work hours, equipment, and skills required to successfully complete a task.;
Perform cost accounting activities: Execute the cost related activities and operations within the accounting activities such as standard cost development, average pricing analysis, margin and cost ratio analysis, inventory control, and variance analysis. Report the results to management and advise on possible courses of action to control and reduce the costs.
Liaise with engineers: Collaborate with engineers to ensure common understanding and discuss product design, development and improvement.
Perform project management: Manage and plan various resources, such as human resources, budget, deadline, results, and quality necessary for a specific project, and monitor the project’s progress in order to achieve a specific goal within a set time and budget.
Control of expenses: Monitoring and maintaining effective cost controls, in regards to efficiencies, waste, overtime and staffing. Assessing excesses and strives for efficiency and productivity.
Estimate duration of work: Produce accurate calculations on time necessary to fulfil future technical tasks based on past and present information and observations or plan the estimated duration of individual tasks in a given project.
Analyse production processes for improvement: Analyse production processes leading toward improvement. Analyse in order to reduce production losses and overall manufacturing costs.

ISCO group and title

2421 – Management and organisation analysts

 

 


 

 

References
  1. Manufacturing cost estimator – ESCO
Last updated on August 8, 2022

Thinking about your next career move?

Answer a few questions about your jobs and education, and we’ll give you suggestions about your best possible career move. It’s completely free!