Estimating Standards vs. Production Standards

An estimating standard is different from a production standard. An estimating standard is a time within which all typical jobs of that run length should or could be accomplished. In other words, estimating standards are times within which the job has to be produced in order to pass along total costs to the customer.

Therefore, estimating standards are typically less demanding than production standards (estimating standards allow more time to complete a task than production standards, for instance).

Production standards, on the other hand, typically take into consideration the specific conditions, for instance, of the particular press and operator skill levels.

Practical Example

If you received two jobs from different customers requiring Dutch Fireball Red Ink and you decided to produce them at the same time; would you give the press operator twice as much time to change the ink? I wouldn’t. Okay, then would you charge each customer only one-half of an ink washup? Most wouldn’t (although surprising some would but they shouldn’t). Why? Most printing jobs are legacy jobs in that they will be printed again. So, if we charged one-half a washup and then the customer returns and we have to charge a full washup; the customer often questions the logic in our pricing. Better to bite the bullet up front and charge the full ink washup. And this illustrates the difference between the production standard and the estimating standard. The production standard is the amount of time given to the press operator to washup the press; the estimating standard is the amount of time (price) passed along to the customer for doing so. In this case, producing two jobs from one ink washup is a production efficiency which should stay with the printer and not be passed along to the customer.

Note: Work And Turn

In this guide we value the printed product in it's final form based on estimating standards. When the printer can improve upon the estimating standard, then the printer should put the savings in the bank instead of passing it along to the customer in the form of a decreased price. Work and turn jobs are an example. Just because the printer is able to run the job work and turn does not decrease (nor increase) the value to the customer. That is a production efficiency.

Estimating standards in this guide are for the typical 12x18 or smaller offset press. Many shops may have two different types of small offset presses with different production standards due mainly to make-ready times. However, at the time the order is entered, it may not be known as to which press the job would be produced upon. So, the estimating standard has to take into consideration the longer of the two production standards. Therefore, there is a difference in the estimating standard such as used in this book and the actual production standard which is developed in a specific shop. However, again, you should view the estimating standard as one in which the job "has" to be produced within in order to pass along your costs. And, remember, this is an average of all jobs of that type, so some take longer than others.

Another variance can occur within the same model of presses due to the state of the equipment. The same shop can have two Multigraph presses of the same model. However, one may be brand new and another may have printed millions of impressions. Therefore the performance characteristics of the two presses may be different. Production standards would take these conditions into consideration; however, estimating standards would not. A similar variance could be found within the skill levels of two different press operators. The estimating standard is a good guide for us in establishing production times, although we realize it is not a production standard. The only way to develop production standards is to measure them within your own shop using your own equipment and personnel. So, with the understanding that the estimating standard tends to be a loose timing requirement which should be met by most shops, the estimating standard then can be of assistance to us when planning production or for verifying pricing.