Starting a new venture

new ventureIf 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.



 
Feasibility Study
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.

Feasibility StudyFixed & 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.

 
Marketing & Sales Strategy

strategy 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.
 
Machine Upgrade and Tuning

machines.jpgEquipment

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.
 

 

Machine speed

Units/minute

Product type

Cost

US K$

Baby Diaper

100-150

Economy

250 - 500

 

200-300

Economy

1,000 -1,500

 

350- 450

Economy/Premiums

2,000-3,000

 

500-600

Premium

3,000- 4,500

 

800-900

Premium

5,000-8,500

 

 

 

 

Sanitary Napkin

150-250

Economy

100-250

 

300-450

Economy

500-1,000

 

500-600

Economy/Premiums

1,500-2,000

 

700-800

Premium

2,500-3,000

 

1000-1200

Premium

3,500-4,500

 

 YNC assist clients in characterizing and sourcing the necessary equipment

 

 
Product Design & Optimization

design.jpg

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

sap

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.

 

Size 4 Maxi 34

 


 


 


 


 


 


 



Raw Materials

Cost($)

Unit

Length

Width

Size

Coefficient

Weight (gr)

Cost per Diaper ($)

Fluff Pulp


Kg

0.380

0.11

0.0418

407

17.00


 Top sheet


Sqm

0.490

0.265

0.12985

15

1.95


TAB Sub layer


Sqm

0.205

0.080

0.0164

40

0.656


Elastic Waist Band


Meter

0.070

0.095

0.00665

35

0.23275


 Leg Cuffs


Sqm

0.490

0.105

0.05145

15

0.77175


 Inner Back layer


Sqm

0.380

0.100

0.038

12.5

0.475


Tissue Upper Layer


Kg

0.380

0.110

0.0418

17

0.7106


Laminated Back
Sheet


Sqm

0.490

0.265

0.130

38

4.9343


Hook Tape


Meter

0.034

2.000

0.068

15

1.02


 Elastic Side panels


Sqm

0.060

0.150

0.009

166

1.49


Front Ears


Sqm

0.070

0.070

0.0098

60

0.59


Frontal  Tape


Sqm

0.050

0.190

0.0095

100

0.95


Leg Elastic


Kg

0.490

6

3.2

1130

0.1038


Cuff Elastic


Kg

0.490

2

3.2

680

0.0208


Adhesive for
const & elastic


Kg

0.490

0.265

0.130

9.0

1.17


Adhesive  for
frontal Tape


Kg

0.050

0.190

0.010

17.8

0.17


SAP


Kg





13


Poly Bags


Unit




34



Master Bag/case


Unit




4



Pallets


Unit

120

80


25












Sum Material cost







45.0


Waste






5%












Total Material Cost









A good quality product is the one that best suits customer needs


 

 
Raw Materials

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:

graph

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!

 
Quality and Testing

quality.jpgQuality 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.

 
Development & Improvement

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.

profitabilityYMC helps clients to improve profitability by:

  1. More efficient products Designs - get more for less.
  2. Sourcing of more cost effective raw materials.
  3. Review of production processes and procedures.
  4. Reduction of waste levels and discrepancies.
  5. Adaptation of quality requirements to market needs.
  6. Evaluation and redefining Human Resources requirements.
  7. Review of marketing strategies and price policies.
  8. Improve cost-calculating and control tools.
  9. Change implementation
  10. 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
 
Staff & Management training

team.jpgHuman 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:

Machine type and (number of shifts)

Operators

Technicians & electricians 

Packers*

Quality & Lab

Supervisor

 

Total

Baby diaper (1)

2-3

1

3

1

0

8-9

Baby diaper (2)

4-5

1

6

1

1

13-14

Baby diaper (3)

6-7

2

9

2

1

20-21

 

 

 

 

 

 

 

  *Automatic packaging system will save you 2-3 packers per shift.

Staff requirements for FemHy or adult Inco lines will be done similarly.  

 
Coaching
Coming soon
 
 
 
 
Contact Information


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