Flexible Packaging prices have been fluctuating frequently now a days due to fluctuations in raw material prices. Hence there is a need for the calculator which calculates the price as quick as possible and with precision. Many organizations (either buyers or suppliers) have hundreds of SKUs and when the raw material price changes they need to derive new price for each SKU and reworking must not take more than a minute for an efficient organization.
Efforts are made to keep the FLCC (Flexible Laminate Cost Calculator) as simple as possible and easy to use. The demo model can be downloaded from the following link. Please click “Enable Editing” if you see “PROTECTED VIEW”
Basics of Flexible Laminate Costing:
Flexible Laminate consist of multiple layers of substrate like polyester, BOPP, CPP, Nylon, EVOH, PE film, Ink, Adhesive, Aluminum Foil, Paper, Metallized film etc… Most of these substrates are traded on Kg basis. That means, in order to get cost of laminate we need to know kg or grams of each substrate consumed to make 1 kg finished laminate. When different substrates are laminated in layers, their square meter area are the same.
So, in calculation gsm (gram per Square Meter) plays important role, costing steps are as under,
Step 1: Find out gsm of each substrate (GSM = Thickness in Micron * Density in Gm/Cubic Cm)
Step 2: Calculate composite gsm of laminate (Total of gsm of each substrate)
Step 3: Calculate Square Meter Per Kg of finished laminate using 1000/composite gsm
Step 4: Now since we have square meter for 1 kg laminate, we can calculate weight of each substrate using gsm of respective substrate
Step 5: Calculate cost of each substrate by multiplying weight and its rate per kg
Step 6: Sum up cost of all the substrate and then add other cost like processing cost, wastage, cylinder cost etc… to derive the final cost.
How to use Flexible Laminate Calculator:
Please download and open calculator. Cells in light blue colour shows that they are input cells. You have to enter parameter as per specifications of job for which you want to calculate cost.
Calculator Input Parameters:
Quantity: Enter order quantity of laminate in Kg for single run. Generally, the quantity below 100 kg is not commercially viable to produce and cost optimization is achieved when quantity is 25 MT so input value range is kept 100 kg to 25000 kg.
Repeat / Open Width: It is dimension of single up. 100 X 100 can be taken in case of roll form for unprinted laminate or when job size is not known.
No Of Cylinders: Cylinder cost is included if no of cylinders are entered. If its 0 then cylinder cost is not included.
No of repeats/ Across Ups: They define the cylinder circumference and cylinder width matching requirements of printing Unit.
Substrate and Micron: Enter value as per laminate structure.
Ink and gsm: Enter gsm of dry ink depending on design
Cylinder Cost amortization: Enter MT quantity over which cylinder cost is to be amortized. If no of cylinders are zero, value entered here has no effect on costing so you can enter just 1
Following are the results obtained from this calculator
- Cost per Kg Laminate of given structure
- Cost per Pouch or Single Up of specified Repeat and Open Width
- Pouch/ single up Weight and No of pouches per kg laminate
- Cost break – up percentage in graphical form
We welcome your feedback on firstname.lastname@example.org . If you want us to develop similar cost model for other products or want cost model to handle costing of hundreds of SKUs that too in less than a minute, you may please write to us.
Rajesh Modhvadia is a consultant at Business Solution Group
Rajesh Modhvadia is MBA from Gujarat University and has around 30 years of experience in Printing and Packaging Industry for sales and marketing. He is passionate about developing systems and models useful to increase efficiency of organization.