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Estimating and Quoting Process Improvement


February 12, 2024

Recent Client Engagement


Patriot Industrial Partners recently concluded a comprehensive 1-week Kaizen event at a Tier 3 gears and machining business.  The events objective was to optimize the estimating and quoting process. The client was not achieving their profitability goals per job and the process was complex and a detailed process that only select team members in the business could complete. The primary objective was to streamline and enhance the efficiency of their current estimating and quoting process using a phased approach.

The Kaizen team outlined the current estimating and quoting process and mapped out the desired future state. Realtime quote examples were utilized to outline current process to highlight areas that would be difficult to replicate or in need of small improvements.

The quoting template used in the process was reconstructed to standardize the process which would increase profitability per job. The client went from relying on random markups to materials, outside processing, and shop rate to having a minimum breakeven gross margin and accurate shop rate that autogenerated a competitive price. The team began to develop a pricing strategy that complimented the new quoting template.  The quoting template was finalized and tested with real time quote walkthroughs.


The client was presented with a comprehensive analysis of their current estimating and quoting process, coupled with a redesigned quoting template. The revised template prioritizes accuracy in shop rates and ensures a consistent gross margin, aligning with industry best practices.

Estimating and Quoting Process

The Estimating and Quoting Process at Patriot Industrial Partners follows a structured three-phased approach with a strong emphasis on team collaboration.

Phase 1 – Process Mapping and Future State Identification:

  • Create a detailed process flow map of the current estimating and quoting process, capturing all relevant individuals, actions, and materials involved

  • Conduct live and real time walkthroughs of the process

  • Identify the desired future state of the process, leveraging insights gained from the process map

Phase 2 – Process Improvements:

  • Review and analyze the financials

    • Ensure the P&Ls are structured correctly

    • Identify gross margin breakeven or the quoting floor

    • Identify and verify that the shop rate is accurate

    • Define desired profit margin

  • Align the quoting process with the financials

  • Implement a pricing strategy specific to job types

Phase 3 – Refinement and Communication of Recommendations:

  • Streamline improvement recommendations to ensure they are effective and repeatable

  • Conduct walkthroughs of the refined process

    • Catch any remaining issues or inefficiencies

    • Align everyone on the new process

  • Reflect on the changes made and ensure that the process is sustainable

By meticulously adhering to this three-phased approach, Patriot Industrial Partners ensures a systematic and collaborative optimization of the estimating and quoting process, ultimately delivering sustainable and impactful improvements to their clients.

Next Steps 

If the focus areas of improvement outlined above match your current needs and would improve the state of your business, please contact Patriot for future engagement opportunities.

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