Friday, May 14, 2010

When is my business ready for an auto t-shirt printer?

Investing in your first automatic machine may appear as a difficult financial decision. However, when you break it down by the numbers, many companies discover that automated machinery saves them money in the long and short run. The following information is designed to show a comparison between a small or midsize shop with manual equipment versus a small to mid-size shop with automated equipment.

Defining a shop size. The small to midsize shop with manual equipment is a shop with one or several manuals, 1 or more hourly employees and an owner operator.

Production Rates. The following Graph is based on the average production rate of a top-notch employee manually printing over an 8 hour day at $10.00 pr/hr.








The following graph is based on the average production rate of a top notch employee automatically printing only, over an 8 hour day at $10.00 pr/hr.






*This graph does not include expenses such as Benefits, workman’s comp, insurance or typical day to day employee aggravation.


Comparison. A shop output is at least four times greater when using an automated machine and employing the same amount of people.

Many owners find that when they personally produce a conservative 300 shirts per hour, they can restructure their facility, use their employee time more effectively or eliminate extra employees.

ROI when comparing Manual printing to Automatic printing.

Based on a 1 year business cycle, using manual equipment only. Total production of 122,400 pieces.

Employee cost at $10/hour with 8 hour days

$20,800.00

Workman’s Compensation

$350.00

Insurance

$350.00

Total Employee Cost (approximate)

$21,500.00

Based on a 1 year business cycle, using automated machinery and a restructured workforce. Owner production of 288,000 pieces in 4 hours per day.

Machine cost of $30,000 on a 60 month lease

$7,800.00

Total Cost (approximate)

$7,800.00

Not only is your shop 4+ times more productive, you have also increased your profit by $13,700 without a change in sales.

Y1-5 ROI= $13,700 $7,800 (Machine Payments) - $21,500 (Eliminated overhead employee expense)

Total $68,500

Y6-10 ROI= $21,500 no lease payments and expected life of the machine

Total $107,500

10 Year total ROI $176,000

Job Size. The common misconception about automatic printing is the size of order that is required to make an automatic useful.

Manual printing in a standard week with 1 press

JOB

Shirt count and color

Colors

Sides

TIME

#1

150 light

2

1

2.5 hrs

#2

50 light

3

2

1.5 hrs

#3

95 dark

1

2

2.5 hrs

#4

250 dark

2

2

6.5 hrs

#5

400 dark

3

1

4.5 hrs

#6

25 dark

1

2

50 mins

#7

35 light

1

2

50 mins

#8

75 light

2

2

2.5 hrs

#9

100 dark

3

1

2 hrs

#10

250 light

3

1

3.5 hrs

#11

25 light

2

1

30 mins

#12

45 light

1

1

30 mins

#13

18 dark

2

2

50 mins

#14

180 dark

2

2

5.5 hrs

#15

65 dark

1

2

2.5 hrs

#16

40 light

2

1

30 mins

Total time for the above job chart = 35 hours of continuous printing

Automatic printing in a standard week.

JOB

Shirt count and color

Colors

Sides

TIME

#1

150 light

2

1

20 mins

#2

50 light

3

2

20 mins

#3

95 dark

1

2

30 mins

#4

250 dark

2

2

50 mins

#5

400 dark

3

1

45 mins

#6

25 dark

1

2

20 mins

#7

35 light

1

2

20 mins

#8

75 light

2

2

30 mins

#9

100 dark

3

1

20 mins

#10

250 light

3

1

40 mins

#11

25 light

2

1

20 mins

#12

45 light

1

1

20 mins

#13

18 dark

2

2

30 mins

#14

180 dark

2

2

50 mins

#15

65 dark

1

2

30 mins

#16

40 light

2

1

30 mins

Total time for the above job chart automatic approximately= 8.5 hrs of continuous print time.

Thank you for the time to review the difference between automatic printing and manual printing. We hope that this gives a clear picture why most shops need to consider adding an automatic to their current production.

We hope that Brown Manufacturing Group, Inc. is your source for all your printing equipment needs. Contact us, or check our web site, for additional information.

*All dollars quoted are based on industry standards and are subject to change.

www.brownmfg.net

www.autotshirtprinter.com

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