Corrugated board profit and cost control

I believe many manufacturers of corrugated cardboard are asking, “The equipment has been improved and the production capacity has been increased. Why are we still unable to make any money?” Is the market downturn or the competition between peers for price cuts? But no matter what kind of factors, in fact, everyone's psychology is also very clear. In the past, the era of high profit has ceased to exist. In addition to the current business operations, the most important thing is to fight management. cost.

The selling price is in the hands of customers. With so many competitors, you can often decide not only the price but the “whether or not to do it”. If you don’t do it, you can only wait for death. If you do it, you don’t necessarily have to make a profit. That is to say, if cost control is not good, profits may also be negative. It can be seen that cost control is undoubtedly the biggest problem in determining the survival of a company.

At present, there is a trend in the corrugated paper packaging industry that the greater the equipment size, the higher the production capacity. Everyone wants to share fixed costs by boosting production capacity, and accumulate profits through production. For example, if one thousand tons were used each month, you can earn one million, and now you can rely on two thousand tons to maintain one hundred per month. Million profit. Basically, this idea is not wrong, but everyone has overlooked a problem - in order to increase the cost of equipment invested in production capacity, and the increase in raw material costs and increase in liquidity after the increase in production capacity has really helped the company? This is worth pondering. The problem. Moreover, the relative high loss of production capacity is great, and if there is no good management tool, the result is still the same - there is no money to make.

The cost of spreading corrugated board, raw materials (fabric and corrugated paper) accounted for more than 70%, in several highly competitive coastal areas also climbed to nearly 80%, other fixed costs accounted for only about 20%. This shows that improving the cost of raw materials is the key to truly controlling profits. So, how to effectively reduce the cost of raw materials? The following provides common practices of several companies:

Cash buying paper: The price of raw materials dropped by cash transactions, but the demand for cash is large. It takes 3 months to calculate the current cash withdrawal, and 3 times the turnover is very pressureful.

A large amount of paper is purchased: the purchase price reduces the selling price of raw materials, the same high demand for funds, and the pressure on stocks. In the event of fluctuations in raw material prices, winning or selling is more powerful than selling cardboard boxes. It is a bit like buying goods. “The risk is high to use alternative materials—for example, to replace Class 175 with 175 Class A paper, to achieve the same purpose in the physical pointer measurement, but the raw materials used may be less expensive. How to substitute, test customer acceptance Degrees also test the intelligence of the vendors.

Controlling on the production equipment: Effective control on existing equipment, such as the use of computer production management system to save the use of raw materials, paste control and temperature control, little investment, but save money At least 3%-5% or more of the province than the manual operation.

Below we will analyze the cost-effectiveness of this part.

We have compared the differences in the customer's production management system several times before and we have found some interesting phenomena.

For example: ask the boss before installing the machine.

Q: What is the average speed? A: About 100 meters/per minute

Q: How high is the board machine wear? A: About 4% -5%

The first three days after installation, the actual calculation by the computer is:

Average speed: 45 meters/minute

Board machine loss is about 8%-12%

After the first month of installation, the computer's actual calculation:

The average speed is 60 meters per minute

Board machine loss is about 6%

Decrease of starch use by 10%

Two months after installation, the computer's actual calculation:

Average speed 80 meters/minute

Board machine loss is about 3.5%

Starch use decreased by 15-20%

This is a real case, it shows that people's feelings and actual information are greatly different. For example, the operator only sees the normal normal speed reaching 100 meters per minute, but ignores how much time the parking is stopped and ignores how much bad paper is made. In fact, the true capacity can only reach the average speed = good length / ( Production time + parking time)

In addition, the meaning of “bad products” does not mean only those papers that are really bad. For most paperboard suppliers, doing more than that does not mean that there is money, but the cost loss and productivity. reduce.

The company's various production management products are numerous, and how to choose, the focus is not only on the price comparison, but how to accurately achieve the purpose of raw material savings, especially the accuracy of paper change, good can be controlled at about 1 meter , bad error will be as high as 20?C30 meters! In addition, providing a computer automatically according to the paper, the speed to control the amount of paste, so that at high speed can automatically reduce the paste gap, and the low speed operation will increase the amount of appropriate amount of paste, so as to save at least 15% The amount of paste, and also, for the temperature control part, but also by the computer to automatically adjust the baking area of ​​the preheated cylinder according to the paper and speed, to ensure the hardness of the cardboard, etc...

In short, the law of market competition is - the survival of the fittest, the elimination of the unfit, and whether you are smart bosses.