Paper Trim Waste ! What is the cost of using incorrect measurements of paper widths?

Lets figure out this scenario: A corrugated plant will consume 6,425 tons for the next period*. This consume will be distributed in 400 different items. * The period could be: monthly, quartetly, etc.

If you don’t know exactly how to calculate the accurate measures of paper widths to ensure the least amount of paper waste, this is what may cost to your company:

* $600 Dlls. per tonnage Let’s figure out you have an item with this measures Let’s figure out you have an item with this measures And you only have paper in these measures. The initial, free, extra cost of paper trim waste for the first item is: 7.1 tons or $4,291* Dlls. The initial, free, extra cost of paper trim waste for the first item is: 7.1 tons or $4,291* Dlls. You customer needs 50 k units.

I know what you are thinking: why don’t you mix orders to fill the space between the 80 and 97 widths ? Because of the measures is difficult to combine orders above 71” and because of the length is difficult to find orders to fill such a big quantity, among other requirements it’s necessary to meet.

The cost for the second item is: 2.8 ton or $1,732* Dlls. * $600 Dlls. per tonnage Oh, sorry, I’m forgetting to tell you about the Waste Factor and Trim Width. The totals Tons Trim Waste are calculated with 7% of production waste and 2.7 cm (1.06 in) of normal trim. This quantities may vary according the standards of each company.

The cost for the third item is:.3 ton or $176* Dlls. * $600 Dlls. per tonnage In this kind of orders you can do what ever you want, ok?, of course you need to reduce costs anytime, but instead of spend time in the small orders, better review the percentaje of waste of the large ones.

Remember, you should start with the items of greatest impact on cost or productivity. And so on..

rigth calculations Applying the rigth calculations, it’s possible to identify and select the optimal paper widths to buy paper for the next period. These are not the Lotto numbers, ok ?, but have similar effects. No other measures ensures the least amount of waste for those 400 items. Really !…. No other ones.

Let’s calculate the same items with the optimal paper width measures.

The cost for the first item is:.1 ton or $72* Dlls., when the paper widths are the ideal measures. * $600 Dlls. per tonnage

The cost for the second item is: 2 ton or $1,217* Dlls. * $600 Dlls. per tonnage

The cost for the third item is:.7 ton or $406* Dlls. * $600 Dlls. per tonnage

Please, take a deep breath.

This exercise shows the importance of analizing the top consumed items. You may notice that the differences calculated in only 3 items are high-impact on the cost and / or productivity.

There are other additional costs generated in the m2, such as glue, transportation, waste management, storage, salaries, etc. This amount also affects the statistics of production, because it increases the square footage produced. Since the trim is absorbed by the ducts and then mixed with other waste, it is difficult validation of results per run.

There are additional costs of greater impact that occurs when you run out of inventory and it must be used the next one. Similarly the costs associated with paper surplus, which is difficult to use for not having orders on those measures.

You have the advantage to choose the ideal paper widths measures to ensure the lowest amount of paper waste Intelligent system Human Expert And please, let the system to find matching orders, only for those items with the lowest impact on cost / productivity, ok?` So, since you are planning the purchase of paper, you can reduce costs. And you have pleeenty of time to deal with unexpected issues.

Do you know how to calculate the ideal size of each width ? Are your paper widths aligned to the most consumed items ? Is it stable the consumption per width ? Do you need to change your widths ?

Margarita Mejia Margarita Mejia Consulting services available. * Paper Width: Mixing orders. Other presentation about paper widths is available in the following link: More information visit my profile in Linkedin: