# Example description of the estimation and control

2022-08-15
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Examples of pad printing cost estimation and control show that many people engaged in pad printing do not understand the cost of printing a moving part. In fact, it is not difficult to know. As long as the cost of each step is counted correctly, the pad printing cost can be estimated. When estimating the cost of pad printing, we mainly consider factors such as the consumption of pad printing equipment, staff salaries, daily expenses, raw material consumption, scrap rate, packaging fees, substrate handling fees and freight. This paper will discuss the estimation and control of pad printing cost through examples

suppose we receive an order for printing 20000 copies of monochrome automotive decorations. When estimating the cost, the first thing we need to do is to determine the average printing volume per hour. In the process of pad printing, due to various reasons such as equipment installation, workshop cleaning, adding diluent, transporting materials and so on, the data that the printing machine can process is very limited and cannot be in operation all the time. Therefore, when determining the average printing volume, we should take into account the reduction of machine efficiency caused by these factors. Generally, these factors will reduce the efficiency by about 20%. Therefore, the maximum printing volume should be multiplied by 0.8 when calculating the productivity

labor cost

for example, if a printer operates and prints 12 pieces per minute, the printing volume in one hour is 720 pieces. Taking other factors into account, the actual average printing volume per hour can be calculated as:

720 × 0.80=576 (pieces)

the time required to print 20000 decorations at the above printing speed is: 20000 ÷ 576 = 34.72 (hours)

finally, the total labor cost can be calculated by multiplying the hourly salary of employees by the total time. Taking into account daily expenses, taxes, insurance and employee vacation expenses, if the labor cost per employee for one hour is \$25, the total labor cost of printing all copies is:

34.72 × 25.00 = 868.05 (USD)

consumables cost

calculate the ink cost first. If the two-component ink is used for printing, the ink cannot be used after the activation period, so the calculation of ink cost is relatively simple. When we add catalyst to the two-component ink in the ratio of 4:1, the activation period of the ink is about 8 hours

in this way, the number of inking required to finish this batch of work is: 34.72 ÷ 8 = 4.34 (Times)

the number of inking is 4.34, which means that at least 5 times of inking, cleaning equipment and other operations are required for tensile tests

it is worth mentioning that if two-component ink is not used for printing, the remaining ink after printing can be used for the next time, without considering the problem of ink activation period. Assuming that 5000 copies can be printed with the last ink, it takes 4 times to print 20000 copies

in addition, it is also necessary to make clear the amount of ink applied each time. This can be obtained from printer suppliers, but generally experienced printers can estimate its value

another thing to note is that some ink is inevitably wasted in pad printing. As pad printing is a wet ink printing process, there must be enough ink in the closed oil cup to ensure the normal printing. Therefore, the amount of inking is more than the actual application

the total cost of ink in the case of five inks is calculated below. Suppose that the printing machine uses an oil cup with a diameter of 60mm, and the ink amount is 50g at a time. If the price is \$55 per kilogram, it is \$0.055 per gram of ink. Then the ink cost of inking once is:

50 × 0.055 = 2.75 (USD)

then calculate the cost of the catalyst

assuming that a catalyst with a capacity of 150ml and a selling price of \$12 is used, the price per ml of catalyst is \$0.08. Add catalyst at the ratio of 4:1 (the ratio of ink to catalyst is 4:1), and the catalyst used for inking once should be 12.5g. In pad printing, the mixing of ink is based on weight rather than volume, so we should add catalyst by weighing 150ml catalyst. In this example, for the convenience of calculation, the weight of catalyst per ml is set as 1g. Thus, the cost of adding catalyst once is: 12.5 × 0.08 = 1.00 (USD)

using the same method, the cost of diluent can be calculated. Assuming that the diluent is \$15 per liter, it is \$0.015 per ml. The amount of diluent added is related to many factors, generally taking a number between 10% and 20% of the total weight of ink and catalyst, such as 15%. According to the above data, the weight of diluent can be calculated as:

(50+12.5) × 15% = 9.375 (g)

then the cost of diluent for inking once is:

9.375 × 0.015 = 0.14 (US \$)

therefore, taking into account the ink and various additives, the cost of inking once is US \$2.75, the cost of catalyst is US \$1.00, and the cost of diluent is US \$0.14, a total of US \$3.89, so the cost of printing a complete batch is:

5 × 3.89 = 19.45 (USD)

note: the above calculation is monochrome printing. If two-color printing is used, the whole cost must be multiplied by 2, that is, 3.89 × 2 = 7.78 (US dollars). In addition to the cost of the above consumables, the cost of the pad printing head should also be considered. The service life of the pad printing head varies from only 200 to 200000, which is related to many factors. Because the decorations we print are used in cars, the printing quality is very high. According to experience, the pad printing head should be replaced after 25000 times of printing. Now, our total printing volume is 20000, so it needs to be replaced 0.8 times after printing this batch of work. Assuming that the price of the pad printing head is \$26, the cost of the pad printing head can be calculated as:

26.00 × 0.80 = 20.80 (US \$)

note: if multicolor printing is used, the cost of pad printing head should also be multiplied by the number of colors. For example, if it is two-color printing, the cost of pad printing head is:

20.80 × 2 = 41.60 (take the road of new blow molding machinery manufacturing USD)

plate making cost

plate printing cost is the most important. Generally, the printing resistance of steel templates can reach more than 1 million, while the printing resistance of high-quality resin templates is generally about 100000. Since this printing volume is 20000 copies, a high-quality resin gravure can be made. We choose 70mm × The price of 150mm resin printing plate is \$53

in addition, the cost of film should also be considered. According to experience, the average cost is about \$25

if the printing plate needs to be made by yourself, the cost of raw materials and the salary of employees should also be taken into account. For example, the size of a piece is 7mm × The price of 150mm blank edition is \$5.75, while the plate making generally takes 20 to 30 minutes, so the labor cost of half an hour is \$12.50. Therefore, the total cost of raw materials and labor is \$18.25

in addition, various fixed equipment, fixtures and other costs should also be considered. Considering these factors, we set the cost at \$300

energy consumption cost

if the printing press uses electricity, then the energy consumption cost is the electricity charge used

set the price of electricity per kilowatt hour as US \$0.697. If the printing press consumes 1.65 kilowatt hours per hour, the energy cost per hour is 1.65 × 0.697 = 1.15 (US dollars), then the electricity charge for the whole batch of activities is 34.72 × 1.15 = 39.93 (US \$)

summarize the costs calculated above, that is, labor cost of US \$868.05, ink and additives of US \$19.45, pad printing head of US \$20.80, plate making of US \$318.25, and electricity charge of US \$39.93, a total of US \$1266.48

other costs

when estimating the cost of pad printing, the cost of waste products must also be taken into account in terms of investment in talent development. Due to different printing equipment, different technical levels of workers, and different printing conditions, the scrap rate is also different. Therefore, it is necessary to find an average value based on previous data. If the scrap rate is 4%, the printing volume of 20000 copies should be at least 20800 copies

the carton cost and freight of packaging printed matter should also be taken into account. Assuming that each packaging carton is \$2 and each carton is packed with 250 copies of printed matter, 80 cartons are required, a total of \$160. If the handling of each carton takes 5 minutes, the corresponding labor cost is \$2.08. Then the total labor cost of 80 cartons is \$166.40

how to reduce the cost of pad printing

through the above examples, we can see that the cost of pad printing mainly comes from labor costs, consumables costs, plate making costs, energy consumption costs and other aspects. Therefore, in order to reduce costs, we need to carry out from the following aspects

(1) improve the production efficiency of printed matter. After the production efficiency is improved, other costs will be reduced, which is the reason why printing plants take reducing downtime as the main control content

(2) try to make the main printing process (from pre press, printing to post press) complete in the company, which can reduce the transportation turnaround time and reduce the management cost. The larger the production capacity that the same management scale can bear, the lower the average management cost and administrative expenses

(3) employee salary is a large part of the cost, and the management of salary has a great impact on the cost. Therefore, it is necessary to often analyze the workload of the post to see whether the and work intensity of the post are commensurate with the remuneration. If it is not commensurate, either increase the workload or work content, overlap the use of personnel, and one person undertakes multiple jobs, or cancel the post or merge with other posts

(4) due to the characteristics of pad printing, printing plates account for a large share of the cost. Because many orders in pad printing are not large, there is no need to use steel template, which can be replaced by resin version. In addition, when making printing plates, we should control the quality, otherwise it will not only increase the cost, but also extend the delivery date

(5) in printing, the control of material cost is very critical. Since the cost of materials accounts for a large proportion of the total cost, material procurement has become the work of the general manager. Printing enterprises should use the lowest price to purchase high-quality materials as the procurement policy, and the production department is required to make full use of materials, comprehensively utilize materials, and make the best use of materials. In addition, we should pay close attention to reducing the scrap rate and the number of reprints and reprints in the workshop. Warehouse management should be standardized to reduce storage losses and overstock of materials. Paper and ink account for the largest proportion of materials. Their prices, like the stock market, fluctuate from time to time. Enterprises should pay special attention to its price trend, buy more when it rises, and save less when it falls

(6) save electricity. Printing enterprises are major power consumers, and many printing enterprises spend millions of yuan on electricity every month. Therefore, all employees should have the awareness of saving electricity, and set up strict and specific energy-saving measures, which should be implemented to people

(7) control the cost of every small link. In the above example, we found that the total cost is distributed in many aspects. While focusing on the main aspects, we should also pay attention to the cost control of various details, such as packaging fees, freight, etc. In short, to minimize the printing cost, we must control the cost of each step to the best, which requires us to strictly manage and sum up experience

reprinted from: China printing materials business information Author: sun Bangyong/compiled

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