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If you are an entrepreneur or a manufacturer and see potential for business growth in the disposable absorbent products industry - baby diapers, sanitary napkins, adult incontinence products - YNC can help you realize that potential.
We at YNC's can help clients set up and run successful and profitable companies in the disposable absorbent products industry by providing the following services:
- Analyze and define the client's organizational strengths, weaknesses and key success factors.
- Accompany clients from the very first stages (feasibility study) through factory establishment and initial production runs, as well as provide ongoing support and consultation as necessary.
- Support clients in defining and implementing appropriate marketing strategies.
- Evaluate with clients their human resources, equipment and materials requirements, as well as provide procurement and purchasing support.
- Locate new and alternative sources for materials and equipment.
- Product design and optimization support.
- Outsourcing support for complimentary products to enhance existing product ranges.
- Preparation and coaching of purchasing or marketing teams in negotiation tactics.
- Management support and training.
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YNC assists clients in the preparation of feasibility studies at the rate and depth of their choice - from preparing the entire study or supplying missing information were needed. Together, clients and YNC evaluate and determine the required elements and information.
Typical Elements in a Feasibility Study:
Marketing & Sales:
Main Players, Market Size, Penetration Rate, Strength & Weakness, Product Mix, Product Design, Prices, Margins, Promotions, Distribution, Staff, Control.
Fixed & Overheads (Expenses):
Requirements for Financing & Collaterals. Rent & Municipal fees, Insurance, Communications, Administration & Managerial.
Variable (Expenses):
Labor Cost, Repairs & Maintenance, Utilities, Consumables, and Taxation.
Production/Operations:
Machine: Characteristics, Capacity, Efficiency, and Waste. Auxiliary equipment.
Materials & Packaging:
Raw Materials, Packaging and Auxiliary materials.
Completion of a feasibility study results in a set of decisions regarding main issues and business plan.
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Implementation of a successful marketing strategy requires a careful
analysis of a company's strengths and weakness. With international
experience and several case studies, YNC assists clients in
understanding their potential opportunities and risks and to make right
business decisions:
- Positioning in the marketplace and value chain analysis.
- Product design.
- Pricing.
- Product placement and distribution channels.
- Promotion & Advertising.
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Equipment
Typical Production line Costs
(including packaging)
All disposables machines are custom-made to suit clients' requirements. They vary in price depending on the following main parameters:
- Machine speed
- Product features
- Machine reliability/efficiency
The following tables provide estimated costs for disposable absorbent products machines. As there are many different manufacturers offering different levels of machinery and post-sale support, these figures should be treated only as indicative.
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Machine speed
Units/minute
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Product type
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Cost
US K$
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Baby Diaper
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100-150
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Economy
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250 - 500
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200-300
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Economy
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1,000 -1,500
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350- 450
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Economy/Premiums
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2,000-3,000
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500-600
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Premium
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3,000- 4,500
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800-900
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Premium
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5,000-8,500
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Sanitary Napkin
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150-250
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Economy
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100-250
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300-450
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Economy
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500-1,000
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500-600
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Economy/Premiums
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1,500-2,000
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700-800
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Premium
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2,500-3,000
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1000-1200
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Premium
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3,500-4,500
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YNC assist clients in characterizing and sourcing the necessary equipment
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Product engineering and design is one of the main keys to success!
Products need to fulfill client's customers' expectations and still be cost effective. Based on what is available in the marketplace, product positioning, and price policies, YNC assists in optimizing products by using the right structure and the right components. The main considerations are:
- Absorbency and protection against leakage, product.
- Outer cover and decoration (aesthetics).
- Closure system.
- Elasticity.
- Packaging.
- Product and production costs.
- Marketing claims.
e.g. calculating a given absorbency cost as a function of the percentage of SAP used in the process
Product Optimization
Raw material cost can consume up to 60%-70% of the ex-works selling price. YNC assists clients in maintaining profitability by:
- Designing cost effective products according to client customers' expectations.
- Creating detailed specifications for your products similar to the samples below.
- Simplifying cost analysis.
- Sourcing the right raw materials.
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Size 4 Maxi 34
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Raw Materials
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Cost($)
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Unit
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Length
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Width
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Size
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Coefficient
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Weight (gr)
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Cost per Diaper ($)
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Fluff Pulp
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Kg
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0.380
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0.11
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0.0418
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407
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17.00
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Top sheet
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Sqm
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0.490
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0.265
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0.12985
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15
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1.95
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TAB Sub layer
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Sqm
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0.205
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0.080
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0.0164
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40
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0.656
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Elastic Waist Band
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Meter
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0.070
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0.095
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0.00665
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35
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0.23275
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Leg Cuffs
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Sqm
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0.490
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0.105
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0.05145
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15
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0.77175
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Inner Back layer
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Sqm
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0.380
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0.100
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0.038
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12.5
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0.475
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Tissue Upper Layer
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Kg
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0.380
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0.110
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0.0418
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17
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0.7106
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Laminated Back
Sheet
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Sqm
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0.490
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0.265
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0.130
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38
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4.9343
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Hook Tape
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Meter
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0.034
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2.000
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0.068
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15
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1.02
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Elastic Side panels
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Sqm
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0.060
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0.150
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0.009
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166
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1.49
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Front Ears
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Sqm
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0.070
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0.070
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0.0098
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60
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0.59
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Frontal Tape
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Sqm
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0.050
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0.190
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0.0095
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100
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0.95
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Leg Elastic
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Kg
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0.490
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6
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3.2
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1130
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0.1038
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Cuff Elastic
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Kg
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0.490
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2
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3.2
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680
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0.0208
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Adhesive for
const & elastic
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Kg
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0.490
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0.265
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0.130
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9.0
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1.17
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Adhesive for
frontal Tape
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Kg
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0.050
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0.190
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0.010
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17.8
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0.17
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SAP
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Kg
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13
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Poly Bags
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Unit
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34
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Master Bag/case
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Unit
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4
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Pallets
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Unit
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120
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80
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25
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Sum Material cost
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45.0
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Waste
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5%
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Total Material Cost
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A good quality product is the one that best suits customer needs
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YNC assists clients in the sourcing of all raw materials from vendors throughout the world. We have access to supplier databases and prices that are used to ensure clients get the right quality and the best deals available.
A sample raw materials cost breakdown for a premium baby diaper follows:
YNC works with clients to drive production waste down to minimums.
Every one percent (1%) in waste saving, contributes 0.6%-0.7% to net profits!
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Quality I (the product)
A high quality product or service is when it meets the customer's exact requirements.
Therefore, a good quality disposable hygienic absorbent product is not necessarily one that absorbs more (although in most case it does) or has more features. Rather, a high quality disposable hygienic product is one that will fulfill better its customer's expectations.
Most people will look for, protection against leakage, comfort, good value for money and availability. Others will also consider, discretion, stylishness, trendy look, and positive reinforcement to their buying decision (usually connected with well known brands or word of mouth), and more..
YNC helps clients to define the right product specifications, and to maintain consistency in producing high-quality products.
Quality II (the process)
A high quality process is an efficient and consistent one. It is the only way to ensure profitable production of high quality products.
YNC helps clients implement correct quality assurance procedures.
Testing
Usually, YNC recommends three (3) levels of product quality testing and inspection:
1. In line – Before the production is completed, automatic or manual, to reject any faulty products from entering the final package.
2. At the end of the production line – Statistical evaluations to prevent faulty products from reaching the marketplace.
3. In the Lab or a testing room – To ensure particular batches perform as specified.
YNC helps clients define the right testing procedures with simple equipment that give them the ability to predict product performance in actual use, while keeping continual track of target specifications and performance.
Typical tests used in a disposable absorbent product manufacturing plant are:
1. Absorbent capacity – The amount of liquid that can be absorbed by the product.
2. Absorbency under load - How much of the absorbed liquid is retained in the product when pressure is applied.
3. Absorbency rate (speed) – How fast liquid is absorbed by the product.
4. Re-wet – The amount of wetness that returns back to the surface when pressure is applied (also called “wetback”).
5. Distribution – How much of the product has been used during absorption, and how far the liquid has moved away from the point of discharge.
To gain a better understanding of the products performance, raw material checking and panel testing is also strongly recommended.
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Improving Efficiency & Profitability
Approximately 60%-70% of the ex-works selling price of disposable absorbent products consists of raw materials costs; 8%-12% are labor costs and the remaining 4%-6% are manufacturing.
YMC helps clients to improve profitability by:
- More efficient products Designs - get more for less.
- Sourcing of more cost effective raw materials.
- Review of production processes and procedures.
- Reduction of waste levels and discrepancies.
- Adaptation of quality requirements to market needs.
- Evaluation and redefining Human Resources requirements.
- Review of marketing strategies and price policies.
- Improve cost-calculating and control tools.
- Change implementation
- Staff training.
Product Design
- Absorbent core optimization (Fluff/SAP ratio & distribution)
- Product shape and dimensions.
- Backsheet / Topsheet design and specifications
- Acquisition layer design.
- Closer system optimization.
- Additional features.
Raw Materials
- Optimize specifications.
- Alternative sources
Manufacturing Process
- Machine upgrade / Replacement.
- Improve control.
- Stacking & Grouping
- Packaging
- Team training
- Work procedures
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Human resource
♦ YNC Provides clients with recommended personnel requirements needed at start-up.
♦ YNC Assist with training of both operators and management.
♦ YNC Provide expert staff to assist in start-up and machine operation until local staff is trained and qualified.
The table below shows an example of the direct stuff requirements to run one (1) baby diaper machine:
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Machine type and (number of shifts)
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Operators
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Technicians & electricians
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Packers*
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Quality & Lab
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Supervisor
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Total
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Baby diaper (1)
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2-3
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1
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3
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1
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0
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8-9
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Baby diaper (2)
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4-5
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1
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6
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1
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1
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13-14
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Baby diaper (3)
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6-7
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2
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9
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2
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1
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20-21
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*Automatic packaging system will save you 2-3 packers per shift.
Staff requirements for FemHy or adult Inco lines will be done similarly.
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Contact Information |
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Email:
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
Office: +972-(0)4-6954590
Mobile: +972-52-5451414
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