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Process Cuts Material Consumption By 4% on Film Line Using Maguire Extrusion Control Network; Amortizes It In 5 Months

Process Cuts Material Consumption By 4% on Film Line Using Maguire Extrusion Control Network; Amortizes It In 5 Months

After twelve months of commercial production on a single blown film line using LineMaster™ Extrusion Control, a processor in the United Kingdom reports that it has reduced raw material consumption by 4% (54,912 lbs. or 24,908 kg/yr.) and improved gauge uniformity. As a result, the cost of the LineMaster software—which works in conjunction with Maguire Weigh Scale Blenders – was amortized in five months.
   
“This large processor agreed to provide details on Maguire LineMaster benefits but declined to be identified for competitive reasons,” said B. Patrick Smith, Vice President, Marketing and Sales. “Yet the results are typical of the raw material cost reductions possible with our extrusion control system, which is based on batch-type gravimetric blending rather than more costly and frequently ‘control-redundant’ loss-in-weight systems.”
  
Processor Achieves Competitive Edge Using LineMaster Software
The processing operation that has used LineMaster with a Maguire Weigh Scale Blender for the past year runs single-layer blown low-density polyethylene (LDPE) film incorporating 1.0% slip agent and 3.0% color concentrate. The Maguire extrusion control system lowered the average film gauge from 103.81% of the target value to 99.14%, resulting in a raw material savings of 4.0%.
  
Return on investment or payback can be calculated using the following formulas.

Annual Material Usage based on 6000 operating hours per year:

Material Usage     = Hourly rate x hours per year
                            = 220 lb./hr. (100 kg/hr.) x 6000 hr./yr.
                            = 1,320,000 lbs./yr. (598,741 kg/yr.)

Annual Material Savings at 4.0% improvement:

Material Savings = Total material usage x percent savings/100

LDPE                  Masterbatch (3%)             Slip Agent (1%)
1,320K x 0.040   1,320K x 0.03 x 0.040      1,320K x 0.01 x 0.040
= 52,800 lbs. (23,950 kg) = 1,584 lb. (718 kg) = 528 lb. (239 kg)

Dollar Savings (lb. savings @ cost/lb.)

LDPE @ $0.50 / lb.     Masterbatch @ $3.18 / lb.   Slip Agent @ $3.64 / lb.
52,800 lbs. x $.50         1,584 lbs. x $3.18                   528 lbs. x $3.64
= $ 26,400                     = $ 5,037                                = $ 1,922

Total dollar savings: $ 33,359


Payback Period
with equipment cost of $ 14,000/12 months

Months Payback
       = Equipment cost divided by material savings x 12 months
                                   = $14,000 / $33,359 x 12
                                   = 5.0 months

“This return on investment does not take into account any additional benefits realized from improved blending accuracy that would further accelerate payback,” said Smith. Payback would also be accelerated if material usage rates were higher (see below), he said: 2.6 months at 440 lbs./hr. (200 kg/hr.); and 1.5 month at 770 lbs./hr. (349 kg/hr.).

After twelve months of commercial production on a single blown film line using LineMaster™ Extrusion Control, a processor in the United Kingdom reports that it has reduced raw material consumption by 4% (54,912 lbs. or 24,908 kg/yr.) and improved gauge uniformity. As a result, the cost of the LineMaster software--which works in conjunction with Maguire Weigh Scale Blenders - was amortized in five months.
   
"This large processor agreed to provide details on Maguire LineMaster benefits but declined to be identified for competitive reasons," said B. Patrick Smith, Vice President, Marketing and Sales. "Yet the results are typical of the raw material cost reductions possible with our extrusion control system, which is based on batch-type gravimetric blending rather than more costly and frequently 'control-redundant' loss-in-weight systems."
  
Processor Achieves Competitive Edge Using LineMaster Software
The processing operation that has used LineMaster with a Maguire Weigh Scale Blender for the past year runs single-layer blown low-density polyethylene (LDPE) film incorporating 1.0% slip agent and 3.0% color concentrate. The Maguire extrusion control system lowered the average film gauge from 103.81% of the target value to 99.14%, resulting in a raw material savings of 4.0%.
  
Return on investment or payback can be calculated using the following formulas.

Annual Material Usage based on 6000 operating hours per year:

Material Usage     = Hourly rate x hours per year
                            = 220 lb./hr. (100 kg/hr.) x 6000 hr./yr.
                            = 1,320,000 lbs./yr. (598,741 kg/yr.)

Annual Material Savings at 4.0% improvement:

Material Savings = Total material usage x percent savings/100

LDPE                  Masterbatch (3%)             Slip Agent (1%)
1,320K x 0.040   1,320K x 0.03 x 0.040      1,320K x 0.01 x 0.040
= 52,800 lbs. (23,950 kg) = 1,584 lb. (718 kg) = 528 lb. (239 kg)

Dollar Savings (lb. savings @ cost/lb.)

LDPE @ $0.50 / lb.     Masterbatch @ $3.18 / lb.   Slip Agent @ $3.64 / lb.
52,800 lbs. x $.50         1,584 lbs. x $3.18                   528 lbs. x $3.64
= $ 26,400                     = $ 5,037                                = $ 1,922

Total dollar savings: $ 33,359


Payback Period
with equipment cost of $ 14,000/12 months

Months Payback
       = Equipment cost divided by material savings x 12 months
                                   = $14,000 / $33,359 x 12
                                   = 5.0 months

"This return on investment does not take into account any additional benefits realized from improved blending accuracy that would further accelerate payback," said Smith. Payback would also be accelerated if material usage rates were higher (see below), he said: 2.6 months at 440 lbs./hr. (200 kg/hr.); and 1.5 month at 770 lbs./hr. (349 kg/hr.).