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shrink wrap costing

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Shrink Buyers Guide

Shrink Wrap Costing

About: Shrink Wrap Costing Formula and Process.

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Shrink Wrap Costing • Shrink Wrap What • Shrinkwrap Why • Shrinkwrap How • Shrink Wrap Film
SHRINK WRAP 101 The end-user of shrink film purchases the product by means of roll cost. A roll of 60 ga. film costs $XX.xx. Many times a person would like to know how much the amount of film on each package is costing them. A shrink wrap professional can answer those questions, but with learnings found in our Shrink Wrap 101 Shrink Buyers Reference Guide - so can you!

For example; A small manufacturer is overwrapping his product on a manual L-bar sealer. His current supplier has recommend he use 8" centerfold film in a 60 ga. material.
 

  • The dimensions of his package are 2" tall x 4" x 8".
  • Obviously, he is wrapping his package by orientating it with the 8" side in the machine direction. In doing so, each cycle is producing a scrap tail 11" long by approximately 2". That calculates out to 22 sq.inches of scrap per package. (2 layers of scrap, 1" wide. Centerfold!)
  • Industry standard put-up is 4370 feet of film per roll. That equates to 52,440 inches in length. (Feet x 12 = number of inches)
  • Dividing 52,440 by 11 ( bag length or cut-off) equals 4767. That is the maximum number of packages obtained from each roll of film.
  • Dividing the price paid per roll of film by 4767 determines the cost per package.
  • Remember that 22 sq.in. of film wasted each cycle? Multiplied by 4767 (total # of packages per roll) the total amount of wasted material is 104,874 sq.inches.
  • In the case of an 8" centerfold, a roll with a total area of 839,040 sq.inches, his current scrap waste is 12.5% of the total amount of film purchased!
  • Lets re-orientate this package and check the savings.
  • Turning the package 900 results in the need of 12" film. The cut-off, however is reduced to 7" That results in a total waste of 14 sq. inches of film per package. The net result is 35% less scrap!

With the new situation, the total amount of scrap generated equals 8% of film purchased. By simply turning the product this shrink wrap customer has saved 4% per roll. In addition to the savings this shrink wrap customer will benefit a higher package yield from a single roll (7491 pkgs / per roll) and increased production speed.(the new package is 35% shorter than the old method allowing faster through-put.)

A final thought...Put These Formulas to Work for You and for fast and easy calculation guidance try the Shrink Wrap Calculator.

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