The Economic Benefit of Rational Use of Rotary Die Cutting Tools

Over the past decade or so, the use of rotary die cutting tools has been uneven across the Asia-Pacific region. In the early days, it was widely promoted and applied in countries and regions with relatively developed economies and relatively high operating costs, such as Japan, Singapore, Hong Kong, Taiwan, etc. Then developing countries in Southeast Asia and South Asia have caught up in the past decade, especially China and India. Despite having a similar population to each other, the Chinese market has the basis for widespread use of rotary die-cutting tools: demand and economic benefits compared to the Indian market. The demand is reflected in the increase in requirements for die-cut products, the substantial increase in consumption power and the number of die-cut products brought about by a large number of exports. So what are the economic benefits of using rotary die cutting tools?

In the past two months, the author visited more than 20 label manufacturers equipped with rotary machines of various sizes in China. The general impression is that the manufacturers have expressed great interest and support for the wide application of rotary die-cutting tools. But the fact is that in addition to some manufacturers who have been using them for many years and summed up a lot of their own experience, many label manufacturers who have just added rotary machines in recent years, whether the extensive use of rotary die-cutting tools can bring more economic benefits There are still many questions. The current situation is that there are several offline flatbed die-cutting machines next to many high-speed flexographic machines or letterpress machines with full rotary on-line processing. Regardless of whether it is reasonable to use the flat die-cutting machine, at least this method has existed for many years, and users should have a clear understanding of its performance, product quality control, and its economic benefits.

When it comes to the use of rotary die-cutting tools for inline processing, manufacturers generally say that they should be used when processing large-volume orders. But what is considered a large order that can be considered in-line processing of rotary die-cutting tools? In today's supply chain with a small amount of variety and timely delivery, the large orders that used to be the same in the past seem to be less and less, and are replaced by changeable ones. Shapes, different materials and styles, especially packaging for daily consumables and packaging for electronic products. Faced with such a situation, some manufacturers have responded that rotary die-cutting tools are too expensive and cannot be worth the cost.

Now let's look at the market leaders of the label industry in the Asia-Pacific region. In almost every country and region, regardless of scale, reputation or benefit, almost all of them are closely related to rotary machines and rotary die-cutting tools. Whether they are using rotary die-cutting tools imported from Germany, the United States, Australia, or Japan, or locally produced molds, almost all market leaders agree that the use of rotary die-cutting tools coexists with their success. In the workshops of these market leaders, you will find both flexo and letterpress printing presses running at high speed inline processing. The finished products after printing and processing (including bronzing, die-cutting, and waste collection) are transported to the quality inspection workshop for high-speed monitoring, slitting and packaging.

Then you will ask how they can ensure that each job is kept competitive in external prices and profitable internally, while paying and absorbing thousands or even tens of thousands of yuan in rotary die-cutting tool costs? Here are A basic conceptual problem (non-financial problem): whether to invest in molds as fixed assets, or to emphasize cost calculation and absorption in each work. The reason is very simple, the price of a circular engraving knife is 6,000 to more than 10,000 yuan, the price of a magnetic drum is 8,000 to more than 10,000 yuan, and the price of a flexible blade is several hundred to several thousand yuan. If the list is not large, it is indeed difficult to add nearly 10,000 yuan of mold costs to the expensive materials, plates and ink costs. But now change the way of thinking, when purchasing millions of expensive rotary machines, set aside about 100,000 yuan as the cost of investing in rotary die-cutting tools. If the 100,000 yuan is regarded as a capital investment to be recovered in the next 2 years, instead of immediately requiring sales to be absorbed in every job, is the market price of sales more competitive? The answer is self-evident. So can the cost of 100,000 yuan as a capital investment in rotary die-cutting tools be recovered? I think in today's rapid development of China's label industry, if investors and operators are concerned about millions of expensive rotary machines There is full confidence in the return on investment, and the answer is obvious as to whether the capital investment of 100,000 yuan can be recovered. So what kind of molds can be purchased for 100,000 yuan, how many molds, and how much in-line die-cutting work can be completed? Here is another key factor when choosing a rotary die-cutting tool: how common is it.

Although China's measurement is based on the metric system, the label processing industry is based on the imperial system for calculations due to the influence of imported machines. Commonly used rotary die cutting tool circumferences are 8 inches, 9 inches, 10 inches, 11 inches, 12 inches, etc., then 8.5 inches, 9.5 inches, 10.5 inches, 11.5 inches, 12.5 inches. Taking a 10-inch wide machine as an example, an investment of 100,000 yuan should be able to purchase the above 10 magnetic drums. And these 10 magnetic rollers can basically make more than 80% of the work typesetting on it, just adjust the spacing between the labels in the circumferential direction within the allowable range of error. The rest is to absorb the investment cost of a flexible blade in each job, and it is believed that the cost and sales price have not become a great pressure.

When flexible blades are used in large quantities and for a long time, the economic benefits of using rotary die-cutting tools for in-line processing are reflected. First of all, the cost of the round die has been controlled; secondly, compared with offline die-cutting, in-line die-cutting can better control the label cutting effect, reduce the scrap rate, reduce labor costs and other operating costs; at the same time, it can be better in terms of delivery time. To meet customer requirements, bring more business opportunities. The result is an improvement in the overall efficiency of the enterprise.

When choosing rotary die-cutting tools, you should also avoid the illusion that expensive tools must have their advantages. In fact, the price reflects the cost. For foreign-made knives, molds made in labor-intensive areas generally cannot reduce their prices to meet the market needs or affordable prices. The processing of the tool is different sometimes because of the different types of molds introduced by different mold manufacturers due to market needs, and even the price varies greatly according to the angle of the tool and the surface treatment. The right way to choose is like any other consumable part, there is no good, only the right: when you choose the right mold for a particular rotary die-cutting job, that's good.

In addition, the design, layout, use and maintenance of the mold will have an impact on the economics of using a rotary die cutting tool for a long time. The design and layout of the mold will sometimes directly affect the cutting effect and the service life of the die. A good design will facilitate alignment, waste removal and winding, and a good design can also extend the life of the mold as much as possible. For example, staggered arrangement, avoid sharp corners, avoid double-layer blades (cut through and cut through on the same knife). The rational use and maintenance of rotary die-cutting tools will be highlighted in future columns, please pay attention to future journals.