Do you want to know…
- What your exact cost price for each product (jacket, pants, etc.) is?
- what the influence of an investment in new machinery on your cost price will be?
- What the impact of hiring another employee will mean for your profitability?
The Cleaning Cost Model developed by the Dutch professional textile care association NETEX in collaboration with CINET will give you the answers to the above questions! This cost calculation tool for the textile cleaning companies provides insight into the cost of your company and the cost price for each product (total 6 products can be selected). As a user you can fill out the basic cost and production information about your business, subsequently the tool will calculate over the past period what your exact cost price and margin have been.
The Cleaning Cost Model includes 4 standard products: jackets, pants, shirts and coats but there is also room to add two articles of your choice such as sweaters, wash & fold or dresses for instance. The model consists of a number of input fields and behind the scenes the system will calculate the flow for each product. The input sheets are intended for the end user to fill in the required data and to make a selection per article from the cleaning and finishing processes. Calculations are then made on the spreadsheets to determine the cost price per item. The calculated cost price is then indicated on the export sheet in euros per item.
The tool is meant to provide insight into what a certain process does with the cost price of a product. Also you can determine the cost and impact of automation and calculate how many more products you need to receive to justify the cost of automation.
One of the major learnings from the tool so far is the insight of investment in new machinery vs. time spent on each product. When you buy more expensive machinery, the cost price will increase only slightly. When you spent more time on finishing however, the cost price rises very quickly. This is remarkable very often ‘time’ is valued as less important than the ‘out of pocket cost’ for machinery.
The tool is free to use for CINET-members or you can acquire a separate license to use the tool.
More information about the cleaning cost model, please contact firstname.lastname@example.org.
Interested in reading more articles? Register now and receive One month free access on WOPCOM platform! By using the coupon code LAUNCH at the registration form, you can have free access for 1 month in the platform.