Inkjet Recycling Cost Analysis

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Inkjet Recycling Cost Analysis

• Important Cost Factors to Consider OR
• LEARNING TO CONTROL THE SEEMINGLY UNCONTROLABLE!
• W2/ Rm. Venetian D         100-230 PM
• Benjamin A Lyles
• Legacy Manufacturing, LLC

2
Program Outline

• Quality Report
• Visual Inspection
• Circuit Test
• Performance Sample
• Cost Analysis

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QUALITY REPORT

• All documents within a company must have a
  practical function.
• Supplier
• Invoice and packing list information
• QC tests and tests results
• Distribution
• Archiving

4
VISUAL INSPECTION

• Correct part number
• - Is it a 23D and not a 41A
• Correct count (packing list)
• - Received only 95, not 100
• Physical damage
• - Cracks, missing nozzle plates, etc.
• Packaging procedures
• - Proper protection for circuits, etc.

5
CIRCUIT TEST

• General Averages
• HP45/15 1-2
• HP26 2-3
• HP29/20/78/56/57 6-8
• HP49/23 8-15
• Lexmark 70/80/16/26 8-12

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PERFORMANCE SAMPLE

• How do you REALLY know a component conforms to
  incoming specifications?
• Randomly pick from different boxes or randomly
  from the same box
• Sample size is dependent on number size of lot,
  but be practical
• Have an established criteria for approval or
  rejection gt75 PASS

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COST ANALYSIS

• (Core/cost factor)
• (Material/cost factor)
• (Labor/cost factor)
• Overhead Miscellaneous
• Cost of Sellable Cartridge

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CORE

• Example
• 500 ea. HP45A _at_ 5/ea.
• Circuit Failure 7 ea. (1.4)
• Damaged 5 ea. (1)
• Non-virgin 2 ea. (lt1)
• Failed print test 45 (9)
• Core Cost Factor 1 (59/500) 0.882

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MATERIAL

• Example
• 500 14 486 cartridges to recycle
• Ink Cost Factor 1 (45/486) 0.907
• Seal Cost Factor 1 (45/486) 0.907
• Label Cost Factor 1

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LABOR

• Example
• Inspection Labor 500 x 0.10 50
• Process Labor Cost Factor
• 1 (45/486) 0.907
• Packaging Labor Cost Factor 1

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OVERHEAD MISC.

• Example
• Overhead per sellable cartridge
• 1.25
• Miscellaneous
• Shipping costs of cores 100/5000.20

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TOTALS

• Example
• Core 5.00 / 0.882 5.67
• Ink 0.74 / 0.907 0.82 (7/ 48 grams/cart.)
• Seal 0.05 / 0.907 0.06
• Other materials (tape, clip, label, box, etc.)
  0.75
• Labor
• 0.10 1.50 / 0.907 0.15 1.90
• Overhead 1.25
• Miscellaneous 100/500 0.20
• Total 5.670.820.060.751.901.250.20
• 10.65 cost per cartridge

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COST REDUCTIONS

• In-house collection 250 _at_ 2 ea.
• Core (5.00/0.882 2.00/0.95)/2 3.89
• Ink 0.74 / 0.93 0.80 (7/ 48 grams/cart.)
• Seal 0.05 / 0.93 0.05
• Other materials (tape, clip, label, box, etc.)
  0.75
• Labor
• 0.10 1.50 / 0.93 0.15 1.86
• Overhead 1.25
• Miscellaneous 50/500 0.10
• Total 3.890.800.050.751.861.250.10
• 8.70 cost per cartridge

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CONCLUSION

• START WITH A PLAN
• CREATE A SYSTEM FOR DOCUMENTATION
• CONTROL, CONTROL, CONTROL
• ANALYZE, ANALYZE, ANALYZE,
• FIND YOUR FINAL COST
• REDUCE COSTS AS YOU GO
• DECIDE IF PSYCHIATRIC HELP IS NEEDED

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Benjamin LylesVP EngineeringLegacy
Manufacturing 518 17th St. Ste. 1630Denver, CO
80202benlyles_at_legacyllc.com303-446-2919