How To Calculate The Cost of A Carton ?

The?corrugated?carton industry is characterized by a wide range of demands and production dispersion. It?means that folding cartons, and all packaging products, cannot be mass-produced in a centralized manner. In addition, the individual requirements of the packaging and the attributes of the supporting products determine that it must be an accessory of the main product.

The carton box itself has outstanding customization and personalization features. Different types of carton products require different types of equipment or production modes, which will bring about the contradiction between the personalization of the order and the matching of the production configuration. Because of this, How efficiently matching production capacity will be the direction that the industry needs to optimize for a long time.

The carton industry and many manufacturing industries have the underlying logic of "correspondence between products and equipment, and cost and scale are related", and because of the reality of "distributed production capacity without scale effect, and the exchange of resource information is not enough", it cannot be carried out on a large scale. Under the background of the stock market and overcapacity, the only choice is price competition, which will not create new space for efficiency optimization, and will not achieve further cost reduction and capital increase, Thus becoming a bottleneck restricting the development of the industry.

My channel will show the corresponding cost analysis and calculation methods based on the current status and situation of China's carton industry. Friends of carton manufacturers can analyze themselves according to the actual situation of each market. If you have different suggestions, please contact and learn from each other. In this article, let's discuss the calculation of the carton processing cost.

1.?A Basic understanding of carton processing fee standards

A.?Time method:?Equipment consumption is evenly apportioned over the scheduled time, The plant rent is related to the time of capacity utilization, Salary is also the rent of labor in terms of time, and the order shift?time is the time occupied by the production of the product, the machine speed is the output per unit time, and the machine start-up rate is the operating rate of the equipment in natural time. So the processing fee is equal to the time value of time spent on the product. From a financial point of view, processing fees are equal to the flat unit amortization of fixed costs. The two are similar in principle.

B.?Material consumption:?This often has an experience value, and the proportion in the product is basically determined. In carton production, this part accounts for a small proportion, and the unit cost is fixed, which has a weak impact on the processing cost.

2.?Processing cost estimation process

A.?General parameters:?a maximum of 286 days in a year, a maximum of 26 days in a month, the Equipment consumption is 5 years, and the percentage of plant?rent to depreciation is 30%. For this parameter, due to the huge difference in the purchase cost of equipment from various manufacturers, the actual service life of the equipment is also very different, and the actual situation shall prevail.

B.?Equipment depreciation: The daily equipment depreciation?is derived from the purchase cost?of the equipment.

C.?Production capacity:?Generally, the hourly production capacity is obtained from the average minute production capacity, the maximum production hours of a single shift are determined, and the changeover time that the equipment can achieve is determined.

D.?Labor: According to the position, the number of people, and the monthly salary, the total monthly salary is obtained, divided by 26 days as the daily salary, and then divided by 8 hours as the hourly salary.

E.?Unit cost: the daily depreciation of the machine, the daily factory rent, the daily salary, and the total daily cost. From the maximum production capacity of a single shift, the minimum unit cost is obtained.

Calculation?Description

A.The change time determines the high base of the?machine?starting fee.

Starting fee = Order shift?hours * (daily equipment depreciation + daily factory rent + daily salary) / 8

B.Actual output determines the unit cost

Unit cost = total cost / actual output

C.The unit cost calculation advocates the estimation method - By different order numbers and different production hours, according to the estimated order shift time and hourly production capacity, the corresponding output and unit cost can be obtained. The estimated processing cost is the estimated unit cost under the condition that the actual cost parameters and production parameters are met. In reality, it is often necessary to formulate a quotation strategy according to the processing cost, and use an appropriate quotation strategy to achieve the corresponding estimated output, thereby the actual estimated processing cost or income level.

Next article we will talk more about the processing and the cost calculate information about the cartons, If you are interested in this subject, Don’t forget to subscribe to my channel, So that you can find me anytime. Thanks for your support. ^^