CNC Shop Cost Accounting Model Development -- 2

REQUEST FOR QUOTATION:

Scope of Work (SOW)
Freelance Cost Accountant – CNC Machine Shop Costing & Quotation Analysis Model

Project Title:
Development of Confidential Cost Accounting and Quotation Framework for a South African Engineering Machine Shop

Objective:
To develop an integrated, Excel-based costing and quotation model for an engineering machine shop that provides CNC and general machining services. The model must accurately represent labor, machine, and overhead costs, while incorporating commercial risk adjustments for quoting purposes. It will also enable secure, role-based access to sensitive cost data and provide a clear, professional interface for operational and management users.

Freelancer Selection Criteria (Pre-Submission Requirements)
To be considered for this assignment, interested freelancers must meet the following criteria:
• Professional background in cost accounting, with experience in manufacturing, engineering, or machine shop environments.
• Demonstrated strong Excel skills, including the ability to design structured, formula-driven, and well-formatted costing models.
• Submit sample work (PDF format) showing similar costing models or quotation frameworks previously developed. This should include:
o Structure of cost build-ups (labor, machine, overhead)
o Examples of calculation logic and layout
o Attention to formatting and presentation
o Samples should not include proprietary client data but must reflect real experience.
• Willingness to sign a Non-Disclosure Agreement (NDA) prior to receiving any sensitive company information.

Deliverables
1. Labor Rate Build-Up Sheet (Password Protected – Confidential)
• A single worksheet calculating fully burdened labor rates per job capsule (e.g. Turner, Senior Turner, Millwright, etc.)
• Includes:
o Base wages
o Statutory burdens (UIF, SDL, COIDA)
o Leave, bonus, pension, medical aid provisions
o Allocation of general shop overhead
• Separate calculation for agency/labor hire workers, who receive no benefits or paid leave.
• Labor cost rates will be calculated on a Rand-per-productive-hour basis, with a clear definition of what constitutes a productive hour.
• Output rates per job capsule will be used as lookup references in the Cost Summary Sheet.
• Sheet must be password protected and structured for easy updating.

2. Machine Rate Build-Up Sheet (Password Protected – Confidential)
• Single worksheet summarizing all machines by code with their hourly rate calculations.
• Includes:
o Purchase price
o Depreciation
o Financing/interest
o Insurance or other fixed costs
• Excludes variable costs such as consumables or electricity (handled in overhead).
• Output: R/hour rate per machine, linked to the Cost Summary Sheet.
• Sheet must be password protected.

3. Overhead Allocation Sheet (Password Protected – Confidential)
• Consolidated general overheads: rent, utilities, admin salaries, shared consumables, etc.
• Allocated on an R/hour basis across all productive labor hours (permanent and agency staff included).
• Resulting rate to be loaded into the labor build-up and cost summary sheets.
• Must be clearly documented and locked.

4. Cost Summary Sheet (Accessible to Admin Staff)
• Entry-level quoting tool for admin personnel.
• Inputs:
o Job capsule (selected from dropdown)
o Labor hours (setup and run)
o Machine code and machine run hours
o Materials, subcontracting, other costs
• Outputs:
o Total job cost (labor + machine + materials + other)
• Sheet must use automated lookups to pull rates from the locked labor and machine sheets.
• Must be well-formatted, visually structured, and user-friendly.

5. Quotation Analysis (QA) Sheet – Management Use
• Used to adjust and finalise customer quotations with margin and risk considerations.
• Allows:
o Markups by category (labor, materials, etc.)
o Adjustments for:
 Payment terms (e.g. 90-day cash flow impact)
 Currency fluctuations
 Contingencies (e.g. labor overruns)
• Outputs:
o Final quote
o Job cost breakdown
o Gross and net profit (R and %)
• Must be formatted for high-quality presentation and decision-making use.

Confidentiality & Security Requirements
• All sheets containing sensitive inputs (labor, overhead, machine rates) must be password protected.
• Freelancer must sign an NDA before receiving any wage or cost-related information.
• Clear separation of access must be maintained between admin and management-level data.

Data Provided by the Company
The company will provide various information required for calculations, including:
• Wage and benefit data for each job capsule
• Agency/labor hire hourly rates
• Asset register with:
o Machine codes
o Purchase costs
o Depreciation schedules
o Financing/interest costs
• Overhead summary (monthly/annual)
• Productive hour assumptions
• Reference quotations or templates (if available)

Format Requirements
• Delivered in Microsoft Excel (.xlsx) format
• Each component must reside in a separate, clearly labeled sheet
• Input fields clearly marked and separated from formulas
• Dropdowns or data validation used where applicable
• Professional formatting throughout (titles, tables, cell styling, headers, alignment)

Timeline
• First draft due within 1 week from the date all required information is handed over (to be completed within 1 week of order placement)
• Feedback turnaround required within 24 hours, due to the time-sensitive nature of the project
• Final version expected within 2 weeks of project start