Elsner Engineering Blog

Elsner Engineering Blog

TCO: What Are You Really Paying for…or Gaining From…Your Converting Equipment?

Boosting productivity is something Elsner Engineering knows a little something about. Not only do we run a tight manufacturing ship in our own operation, keeping a strong focus on lean processes and efficiencies; we manufacture fully automatic converting machines that are key to our customers improving their processes. We recently worked with a company who moved to an Elsner fully automated wet wipe production line and found an up to 90% increase in production. Yes, that’s 90. So, it’s no surprise they have begun the process to purchase another line.  Have you considered integrating automation to boost your productivity?

Top Line Efficiencies, Bottom Line Gains
We know that purchasing a production line, or even one piece of machinery, is a major capital expense for most companies, and many people look at the cost of the machine solely as the bottom line price. However, a Total Cost of Ownership (TCO) approach is far more comprehensive approach to procuring machinery by taking into consideration all the facets of what makes an operation efficient and, more importantly, profitable. Saving time, labor costs, space on your floor—what are the pain points you’re experiencing that automated machinery could help you solve? When considering the boost in output and efficiencies you stand to gain by incorporating automation into your process, maybe you should ask yourself what’s the cost to your bottom line of NOT automating?

Incorporating Automation for More Profitable Processes
If you consider the basic concept of lean manufacturing, it’s the concept of a manufacturing approach designed to provide efficient and competitive production. Eliminating waste and utilizing your biggest resource—your people –are key goals when it comes to driving efficiency. In a world where everyone wants it faster and cheaper, every operation needs to keep their eye on the final goals of how to deliver a quality product with a favorable margin. There is no bigger ticket item (literally) than your machinery to consider. Have you taken a look at the Overall Equipment Effectiveness (OEE) of your line lately? As you’re considering growth plans, how are you calculating the efficiencies of the current machinery you own versus the benefits of incorporating automation into your process? If you’re struggling with the concept, here are a few preliminary questions to consider:

1. Are you able to keep up with peaks of demand?
2. Are your customers demanding quicker delivery? Can you handle your next big order ON TIME?
3. Is your HR cost unpredictable, including overtime hours necessary to finish a job?
4. What’s your monthly throughput?
5. Are your systems and personnel flexible enough to allow for new product development?

Elsner Machinery, Turn the Key and GO
As a company who has grown with the times, we have seen many trends come and go. But one constant, common sense concept that never goes out of style is that most business owners want to make money. If you’re not considering the TCO of your equipment, quite simply, you will not optimize your level of profitability. In Elsner’s view, choosing your manufacturing partners is equally important to get your operation to the next level. Elsner is uniquely positioned in the marketplace to possess a broad view on manufacturing, having designed machinery for many diverse and complex markets. As a partner, service is our differentiator. We know, everyone says that. But we challenge you to find
another company who builds machinery that lasts for decades, who will stand behind and service those machines, no matter where in the world, and if you have a question, you can speak directly to the engineer who designed it? We have the context and experience to help you evaluate new markets, new substrates and the potential your operation holds. To sum it up, in the morning, when you go out to your car, don’t you want to just turn the key and go? Why should your converting equipment be any different? Elsner can get you there.