Examples of Actual Cost Savings…

The examples shown in the Case Histories section have been used to show cost savings actually made using a UK Agency labour rate of £6.95 per hour, contracted over 8 hours and then divided by 6.5 to give a standard working day and a standard working week of 5 days per week. These costs include all National Insurance, Tax and holiday allowances.

Use your own labour rates and associated costs to work out how much of a cost saving you would have made, and therefore how much more profit, if these were your contracts.

Case History 1 - Candle Decoration

The number of candles decorated in this instance was 200,000 with a size of 75mm x 300mm.

Applying waterslide decals by hand at 3 minutes per candle equals10,000 hours, which equals 1539 days or 308 weeks work for one person.

At £6.95 per hour, this gives a cost per candle of 42.75 pence.

The total application cost for 200,000 candles was     £85,500.00

In this particular case wastage was very high at 20% due to the project being a full wrap on large and difficult candles.

So the total actual cost, taking into account the wastage, was £102,600.00

By comparison, automatic application to the same number of candles by this system can be made at 8 pieces per minute, which equals a total of just 416 hours, which is 64 days or 13 weeks for one operator.

At £6.95 per hour, this gives a cost per candle of only    1.78 pence.

The total application cost for 200,000 candles was just £3556.80 and even though the candle was so difficult, wastage was only 1%.

The total savings on this project were 9584 hours, which is 1475 days or 295 weeks, and most importantly perhaps ... a bottom line cost saving of £99,043.20 ... a massive 96.53%.

Case History 2 - Mug Decoration

The number of mugs decorated in this case 30,000.

Applying waterslide decals by hand at 1 per minute equals 500 hours, which is 77 days or 15.4 weeks work for one person.

 At £6.95 per hour, this gives a cost per mug of 14.25 pence.

The application cost for 30,000 mugs was £4275.

Add to this the average wastage of 10% and the total application cost (excluding the cost of the wasted materials, cleaning the mugs and reapplying new decals) was £4,700.00.

By comparison, automatic application to the same number of mugs by this system can be made at 20 pieces per minute, which equals a total of just 25 hours, which is 4 days or less than a weeks work for one operator.

At £6.95 per hour, this gives a cost per mug of only    0.7 pence.

The total application cost for 30,000 mugs was just £213.75 and wastage was only 1%.

The total savings on this project were 475 hours, which is 73 days or 14.6 weeks, and most importantly perhaps ... a bottom line cost saving of £4486.25 ... a terrific 95.45%.

When you consider that these are actual savings that have been made you can easily see why companies are investing in these systems … and don’t forget that we haven’t factored in the cost of wasted materials, the production space and drying space saved and the ability to be able to operate a JIT (Just In Time) system of production.

One final consideration … when a project is completed this quickly the invoice can be raised and payment received far, far quicker … therefore dramatically improving your cash flow.

Now visit our decal applications page and explore the possibilities of many diverse applications