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. In the past, every salesman may have to learn the company's quotation formula: cost + profit = selling price, but now the market's operating rules are: price cost = profit.
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 itâ€. 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 the question: In order to increase the cost of equipment invested in production capacity, and whether the increase in raw material costs and the increase in liquidity after the increase in production capacity really helped the company? Thoughtful questions. Moreover, the relative high loss of production capacity is great, and if there is no good management tool, the result is still the same - no money.
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 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 to buy paper – The price of raw materials dropped in cash transactions, but the demand for cash is large. It takes 3 months to calculate the current cash withdrawal, and the financial pressure of 3 times turnover is considerable.
A large amount of paper--sales prices to lower the price of raw materials, the same high demand for capital, inventory pressure, in case of raw material prices fluctuate, lose or sell more powerful than selling cardboard boxes, a bit like buying goods, "pressing Po is very risky to use an alternative material - say 125 grade A paper instead of 175 grade B paper, to achieve the same purpose in the physical pointer measurement, but the raw materials used may be less expensive. How to substitute and test customers The degree of acceptance also tests the intelligence of the vendors.
Controlling on production equipment - Effective control of existing equipment, such as the use of a computer production management system to save on the use of raw materials, control of paste volume and control of temperature, etc., with little investment but savings The money is at least 3%-5% more than the manual labor.
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/minute Q: How high is the boardboard loss? A: About 4% -~5%
The first three days after installation, the actual calculation by the computer is:
Average speed: 45 meters/minute Cardboard loss is about 8% -~12%
After the first month of installation, the computer's actual calculation:
The average speed is 60 meters per minute The board machine wear is about 6%
Starch use decreased by 10%
Two months after installation, the computer's actual calculation:
The average speed of 80 meters/minute The loss of board machine 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 has been stopped and ignores how much bad paper is made. In fact, the real production 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 can be as high as 20 – 30 meters! In addition, providing a computer automatically according to the paper, speed to control the amount of eating paste, so that at high speeds can automatically reduce the paste gap, and the low speed operation will increase the amount of the 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 .....
In short, the law of market competition is - the survival of the fittest, the elimination of the unfit, and whether you are smart bosses ready?