Fumeite: Regarding Cost from Digital Printing Plant
Fumeite: Regarding Cost from Digital Printing Plant
The contents of the article are as follows:
June 28, 2017 fashion printing Qingdao Conference -the keynote speech of "Regarding Cost from Digital Printing Plant by Yu Fucai, the Chairman of Shandong Gaomi Fumeite Printing Co., Ltd.
Shandong Gaomi Fumeite Printing Co., Ltd. has been doing textile printing since 2006. At present, the company mainly produces knitted fabric printing, and has been doing it for 11 years. Mr. Yu Fucai, chairman of Fumeite, has been engaged in printing industry for 26 years, specializing in printing technology research. He contacted printing enterprises in 2000.
In the course of operation, it is found that many printer salesmen and printing plants are different in terms of cost, and the cost budget given by printer dealers and inks is very different from the actual cost of production and operation of printing plants. The following is a report on the total cost of printing plant, which will provide a reference for investment pricing of SMEs(Small and Medium Enterprises).
I. Some confusing concepts in cost calculation:
1、毛利润-所得税=净利润 Gross profit - income tax = net profit
Everyone usually said that the profits were gross profit, and did not take away the income tax. Income tax generally accounts for 25% of profits and 1% of gross output value. After gross income is removed from income tax, it is called net profit.
2、营业利润=营业收入-营业成本≈产值-产品标准成本（都不含增值税）Operating profit = operating income - operating cost, output value - Product standard cost (excluding VAT).
Operating profit equals business income minus business cost and does not contain value added tax. Business income is also what we usually call the output value. The operating cost is the standard cost of products.
3、产品标准成本=材料成本+直接生产成本+期间费用=坯布等成本+加工成本Product standard cost = material cost + direct production cost + period cost = grey cloth + cost + processing cost.
Product standard cost equals material cost plus direct production cost and period cost. Material cost mainly refers to the cost of materials such as grey cloth, and the processing cost in processing enterprises is mainly direct production cost plus period cost.
4、盈亏平衡点时的产量Q=F/(P-V)=固定成本/（每米加工费-每米变动成本）Yield at break even point Q=F/ (P-V) = fixed cost / (per meter processing fee - variable cost per meter)
When we invest, we often encounter a break even point. The breakeven point is closely related to the industry situation. The output at break even point is equal to the fixed cost minus the variable cost per meter.
II. Calculation method of processing cost
The processing cost is divided into three parts: variable cost, fixed cost and other expenses.
Variable costs: ink, water electric energy, workers' wages, and others.
Variable costs vary greatly with the increase or decrease in production volume. Many manufacturers often talk about the cost of ink, but in fact the cost is almost the same as that of ink.
Fixed cost: depreciation of printer (main engine + printhead), rental fee and management wages.
The most important part of fixed cost is depreciation of printer. In the depreciation of printer, the service life of the main engine and the printhead is different, and the depreciation cost is also different.
Other expenses: sales staff salaries, travel expenses, commissions, social security payments, benefits, financial expenses, etc.
III. Taking the investment of 2 million yuan to purchase 2 medium speed digital printing machines as an example, the detailed processing cost is analyzed.
Assuming the production capacity of 2 digital printing machines 100 meters per hour, 20 hours a day production, production rate of 50%, the production of printed cloth 1000 meters per day, 22 days a month production, a total of 22 thousand meters. The annual prints are 240 thousand meters per year in 11 months. Processing fee (excluding tax): if the pigment printing is 12 yuan / meter, 2 million 880 thousand yuan, the Reactive printing is 13 yuan / meter, 3 million 120 thousand yuan.
The current price of pigment ink is more than 200 per kilogram, the amount of one metre of cloth is about 20g, the cost is 4 yuan per meter, and the 240 thousand meters pigment printing ink is 960 thousand yuan. The price of active ink is 140 yuan per kilogram, and the amount used is less. It costs 2 yuan per meter and 240 thousand meters of pigment printing ink cost 480 thousand yuan. Energy costs are basically the same as workers' wages. The cost of pigment printing digital outsourcing, sizing, steaming, washing and qualitative determination is 360 thousand yuan, and Reactive Printing cost 960 thousand yuan. Finally, it is estimated that the variable cost of pigment printing digital is 1 million 680 thousand yuan, and the variable cost of Reactive Printing is 1 million 800 thousand yuan.
The fixed cost of pigment printing and reactive printing is basically the same.
1, 2 million yuan printer cost, printhead head cost is 800 thousand yuan, according to two years depreciation, every year 400 thousand yuan. The cost of the printer is 1,200 thousand yuan, which is 150 thousand yuan per year according to the depreciation of 8 years. The cost of printer depreciation is 550 thousand yuan per year.
2, the rental fee is 50 thousand yuan.
3, management workers pay 4 people 60 thousand each year, a total of 240 thousand yuan.
Sales staff salaries bonus 60 thousand yuan / person, travel cost 10 thousand, commission 100 thousand, social security 4 people 30 thousand yuan, welfare 10 thousand, financial cost 20 thousand yuan, total 230 thousand yuan.
Processing cost summary
The pigment printing gross profit is 130 thousand yuan per year, the Reactive printing class gross profit is 150 thousand yuan per year, the total output value is only 5% of gross profit, the net interest rate is 4%, the investment recovery period is 13-14 years, so basically there is no profit. The premise of this algorithm is 50% of the boot rate. If the break even point is calculated, the boot rate of 40% should be able to break even.
Assuming that the price of the ink is reduced by 30%, the processing fee will be reduced by 10%, the pigment printings will make 17%, the profit of the Reactive printing will be the same, and the investment recovery period will be at least 5 years to infinity. It is assumed that the price of the printhead will drop by 50%, the processing fee will be reduced by 10%, the gross profit of pigment will be 2%, the Reactive printing will be 2%, and the investment recovery period will be 40 years. If the price of ink and printhead price decrease at the same time, the investment payback period is 3-10 years. But in the last two years, the price of ink has dropped by 30%, and the price of printheads has dropped by 50%, because it is a product monopolized by Japan.
According to the above price premise, when the actual output is 30% of the production capacity, the Reactive printing and the pigment are all loss, and the investment is not rewarded. When the actual production is 70% of the production capacity, this production needs a strong marketing capacity, basically the need to stop, at this time the pigment profit is 15%, the Reactive printing profit is 17%, the return period of investment is about 3 years. When enterprises invest, the return period of investment is reasonable about three years, but even on the premise of existing prices, the actual output is 70% of the production capacity is very difficult.
In the final calculation of the cost, in addition to the ink and printer depreciation, but also to consider the number of actual orders, the shortage of fixed cost of the order, commission, social security, financial costs and so on, these costs are far higher than the 45%~66% (and in the eyes of printer dealers and ink merchants, these costs are directly discounted! "What is frightening is that when the actual output is only 30% of the capacity, the ratio of these costs to the output value will be greatly increased, which will lead to a loss directly. And the quality claim is not added yet! Our analysis is based on an investment of 2 million yuan. If 1 million yuan goes to a machine, the 50% of the ideal capacity is also a serious loss. So we think that the time to expand the scale of digital printing is the price of 34%-55%'s ink and printhead, after the decrease of 30%-50%, and the decrease of digital printing processing fee is not more than 10%.
In the end, Mr. Yu stressed that the price war in the digital printing industry is definitely a blind area for the concept of cost. The most important thing in the digital printing industry is the high quality products and high quality customer service. Enterprises should refrain from price war based on service double high, and regard quality and service as important conditions for subsequent product development and customer improvement.。
Review of Fashion Print:
From the point of view of the digital printing factory, the processing cost of digital printing is more difficult. It is necessary to have sufficient orders and efficient production efficiency. If the price of ink and printhead in the digital printing production cost 34%-55% can be reduced by 30%-50%, and the decline in digital printing processing fee is not more than 10%, the scale of digital printing will be expanded rapidly. In the short term, the price of ink and printhead may not be greatly reduced, but it is not a price war for the enterprise, but a good service to the market with high quality products and high quality customer service.