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[]
["Model: RFID Cost/Benefits For US Corrugated Box Manufacturer"]
[]
["TABLE OF CONTENTS"]
["Click a worksheet name below to get to that page."]
[]
["Sheet","Description"]
["Methodology","Overview, methodology, key assumptions, definitions, and secondary sources of information"]
["Overview of XYZ Corrugated Box Corp.","Key financial and operations statistics for XYZ Corrugated Box Corp."]
["Benefits assumptions","Overview of the RFID benefits realized by a corrugated box plant when tagging finished boxes"]
["Tag calculator","Calculator for computing tag requirements and costs"]
["Machine calculator","Calculator for computing machine upgrade costs, which includes machine modifications, scheduled down-time, and commissioning"]
["Labeler and reader calculator","Calculator for computing the requirements and costs of labelers, readers, and software used for inline RFID tag application"]
["Productivity calculator","Calculator for computing the cost of additional headcount and lost productivity, including setup times, slower line speeds, and operational down-time"]
["Returns and waste calculator","Calculator for computing the cost of customer returns, dunnage, and waste, including setup waste, run waste, and tag waste"]
["Costs","Summary of total RFID costs over 3 year period including depreciation and amortization of capital expenditures"]
["Financial metrics","Summary of RFID's impact on important financial metrics such as cost per msf, cost per piece, and cost per order"]
["Industry data","Data from 2003 TAPPI/FBA Corrugated Productivity Waste Survey Report, and 2002 Fibre Box Association Key Performance Indicator Survey Of Corrugated Plants"]

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[]
["Model: RFID Cost/Benefit For US Corrugated Box Manufacturer"]
[]
["OVERVIEW"]
["Costs and benefits are for a brown box plant of XYZ Corrugated Box Corp, a corrugated box manufacturer with US net sales of $40.9 million, and annual shipments of 676 million square feet. Many of its largest customers are consumer goods manufacturers facing RFID mandates from US retailers like Wal-Mart, Target, Best Buy, and Albertsons, as well as the Department of the Defense. These customers are actively seeking ways to involve their corrugated suppliers in their RFID deployment plans. This model was built using US sales, costs, and operational inputs."]
[]
["NOTE: This model can be used as a tool for FBA members to identify their own RFID benefits and costs. All cells appearing in light blue or light pink can be modified to describe your plant scenario. Light pink cells represent assumptions that bear a disproportionate impact on costs. Please pay special care when modifying link pink assumptions."]
[]
["NOTE: All costs are incremental to existing capital expenditures, direct, and indirect costs."]
[]
["METHODOLOGY"]
[]
["Step 1: We defined the operations of XYZ Corrugated Box Corp."]
["We identified the RFID costs and benefits to a brown box plant at a hypothetical corrugated box manufacturer, XYZ Corrugated Box Corp. We chose this approach because the costs and benefits will vary greatly based on a plant's operations. We defined plant characteristics using visits to two corrugated box plants, user interviews with FBA members, vendor interviews with equipment manufacturers and leading providers of RFID products and services, and industry information provided by the Fibre Box Association."]
[]
["Step 2: We determined XYZ Corrugated Box Corp.'s RFID approach."]
["We focused on RFID tagging for finished goods (boxes), not raw materials (rolls). Given this, the model does not quantify the benefits and costs of using RFID in sourcing, inbound logistics, or raw materials handling. Why did we take this approach? Because many consumer goods manufacturers facing RFID mandates of their own want their corrugated suppliers to assume tag application and, potentially, its associated costs. Therefore, FBA members must determine the impact of RFID application to finished boxes and their reaction to likely customer demands."]
[]
["Step 3: We detailed the potential benefits of RFID in corrugated box production and distribution."]
["We used visits to two corrugated box plants and user interviews with FBA members to identify the key operational challenges of corrugated box manufacturers. We then determined which operational challenges could be addressed by more granular data (serialization), more timely data, and/or automated data capture (auto-identification). These are the operational challenges that can benefit from RFID. Finally, we made assumptions about the degree to which RFID could solve the challenges. "]
[]
["Step 4: We quantified the incremental capital expenses and overall annual costs."]
["We used visits to corrugated box plants, public resources, and interviews with corrugated box manufacturers, RFID vendors, and equipment manufacturers to calculate RFID requirements and costs. These costs include: 1) RFID tags, 2) machine upgrades (including one-time costs of machine modifications, scheduled down-time, and commissioning time); 3) labelers, readers, and software used for inline tagging; 4) productivity costs (including setup, operational down-time, and headcount); 5) and customer returns and waste costs (including setup, run, and tag waste). Many of these costs -- particularly those for RFID tags, labelers, readers, and software -- are in constant flux. Therefore, we advise companies to modify our assumptions based on current market prices and/or vendor quotes. All default cost assumptions in this model were made using cost estimates gathered from June to August, 2004."]
[]
["Step 5: We computed costs on a 3 year basis, and then calculated costs by key financial metrics."]
["We chose a 3 year period to report costs because: 1) the RFID market will change significantly over the next few years, making it difficult for corrugated box manufacturers to plan their operations beyond a near-term time frame; and 2) many of the capital expenditures made in Year 1 will depreciate over a three year basis. The full depreciation of capital expenditures made in Year 2 and Year 3 extends beyond the time-frame of this model. We then calculated costs by key financial metrics including cost per: msf, ton, piece, truckload, and order."]
[]
["DEFINITIONS"]
["RFID tag: a tag with an integrated circuit (IC), antenna, substrate, and adhesive. Passive RFID tags, which are the type mandated by retailers, typically contain a 96-bit identification number but no internal power supply. These characteristics make them cheaper than other types of RFID tags (for example: active tags). RFID tags may be integrated into labels with bar-code information."]
["RFID labeler: equipment used to apply RFID tags on a production line"]
["RFID middleware: Platforms for managing RFID data (e.g. filtering duplicate or erroneous reads) and routing it between tag readers or other auto identification devices and enterprise systems"]
["RFID reader: a device which uses radio waves to power and read passive RFID tags. The RFID data collected by the reader may then, in turn, be integrated with enterprise applications using RFID middleware."]
["Slap-and-ship: a project in which tagging is done in a consumer goods manufacturer's distribution center(s), as close to the shipping zone as possible"]
[]
["KEY ASSUMPTIONS"]
["1) The focus of this model is on make-to-order brown boxes used by consumer goods manufacturers to ship cases of products to retailers. The model does not evaluate RFID tagging for other types of boxes such as stock boxes, bulk boxes, and boxes used for retail packaging, or specialty items like corrugated displays."]
["2) RFID will be applied during the converting process. While there are patents for applying RFID during on the corrugator line, most RFID equipment and technology does not support this yet. For example, labeling equipment is not flexible enough to account for the varying widths of blanks during the scoring process."]
["3) Also, today's RFID labeling equipment is not flexible enough to work with rotary die-cutters where the blank width can be made into several boxes. Therefore, a manufacturer will need to run die-cut boxes through another converting machine, like a specialty folder gluer, in order to apply RFID tags."]
[]
["SECONDARY RESEARCH"]
["2003 TAPPI/FBA Corrugated Productivity Waste Survey Report"]
["2002 Fibre Box Association Key Performance Indicator Survey Of Corrugated Plants"]
["2003 Fibre Box Industry Annual Report"]

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[]
["Model: RFID Cost/Benefit For US Corrugated Box Manufacturer"]
[]
["OVERVIEW OF XYZ CORRUGATED BOX CORP. PLANT"]
[]
["The following scenario is for a box plant with $40.9 million in US net sales and shipments of 676 million square feet. This plant is of above-average size (around 250,000 square feet) and services nearly 300 customers in a 200-mile radius. The plant has converting equipment including rotary die-cutters, flexo-folder gluers, and specialty folder gluers. It employees 90 hourly employees and 35 salaried employees. It operates 260 days a year, with 2 eight-hour shifts per day."]
[]
["FBA members are encouraged to modify this scenario to fit their own plant operations. Instructions on how to do so appear throughout this overview."]
[]
["INPUT"]
["To see the data in a row, click on the \"+\" sign to the left of the row."]
["Cells colored blue are modifiable variable"]
["Cells color pink are modifiable variables that bear a disproportionate impact on costs. Please pay special care when modifying these assumptions."]
["All default cost assumptions in this model were made using cost estimates gathered from June to August, 2004."]
[]
["Financial ratios"]
["Net sales (total $)",40929680.75]
["Percent of revenue that are shipping cartons",0.65]
["Net sales of shipping cartons (total $)",26604292.4875]
[]
["Source of Net sales and Customer returns/allowances: 2002 Fibre Box Association Key Performance Indicators Survey Of Corrugated Plants. We used average data from the Top 10% of all companies. Our reason: These companies have optimized operations, and so RFID's costs (like lost productivity) will be greater."]
["Note: To more accurately reflect your operations, you may choose to modify net sales using your own data, or industry average data across all corrugated box manufacturers. In the case of the latter, please refer to data from the 2002 Fibre Box Association Key Performance Indicators Survey Of Corrugated Plants, which appears in the sheet \"Industry Data\"."]
["Source of Percent of revenue that are shipping cartons: Industry data is not readily available, and so this is the best estimate of the FBA RFID Task Group."]
[]
["Net shipments"]
["XYZ Corrugated Box Corp. measures net shipments in square feet, however, some manufacturers will measure net shipments in tons. To calculate net shipments, please choose between Option #1 (msf) or Option #2 (tons). Please delete all cell values in the option that you DO NOT choose."]
[]
["Option #1:"]
["Net shipments (msf)",675965]
["Percent of shipments that are shipping cartons",0.75]
["Net shipments (msf, shipping cartons)",506973.75]
["Revenue per msf",52.47666666666667]
["Average box size (shipping carton) in square feet",10]
[]
["Source of net shipments: 2002 Fibre Box Association Key Performance Indicators Survey Of Corrugated Plants. We used average data from the Top 10% of all companies. Our reason: These companies have optimized operations, and so RFID's costs (like lost productivity) will be greater."]
["Note: To more accurately reflect your operations, you may choose to modify net shipments using your own data or industry average data across all corrugated box manufacturers. In the case of the latter, please refer to data from the 2002 Fibre Box Association Key Performance Indicator Survey Of Corrugated Plants, which appears in the sheet \"Industry Data\"."]
["Assume: The percent of shipments that are shipping cartons excludes sheet shipments, and other types of boxes such as stock boxes, bulk boxes, and boxes used for retail packaging, or specialty items like corrugated displays. "]
["Source of percent of shipments that are shipping cartons. Industry data is not readily available. This is the best estimate of the FBA RFID Task Group."]
["Source of average box size: Fibre Box Association"]
[]
["Option #2:"]
["Net shipments (tons)",0]
["Percent of shipments that are shipping cartons"]
["Net shipments (ton, shipping cartons)",0]
["Revenue per ton",{"$error":"#DIV/0!"}]
["Average box size (shipping carton) in pounds"]
[]
["Net shipments of shipping cartons (boxes)",50697375]
["Average number of orders for shipping cartons (annually)",3500]
["Average order size (boxes)",14484.964285714286]
[]
["Converting machines"]
["The following machine assumptions are used as inputs to several calculators such as machine, labeler and reader, and productivity. In the XYZ scenario, XYZ Corrugated Box Corp. will upgrade four converting machines to tag finished boxes. If you plan to upgrade more than four machines, then please use the additional machine boxes provided below. If you plan to upgrade fewer, then please delete all cell values for additional machines. "]
["Also, these assumptions are derived using the 2003 TAPPI/FBA Corrugated Productivity Waste Survey Report. We have chosen to use averages from the Top 15% of companies. Our reasoning: key metrics like pieces per total machine hour and revenue per machine hour are higher. Thus, costs like lost productivity will be greater. For industry numbers that can be used to guide model customization, please see the sheet \"Industry Data\"."]
["Please note: Revenue per machine hour is automatically calculated using square feet per total machine hour and revenue per msf which is part of Option 1. If you calculate using Option 2 (revenue per ton) instead, then you will need to manually input revenue per machine hour."]
[]
["Machine #1"]
["Flexo-folder gluer #1 (< or = 28 x 72\")"]
["1000 sq. feet per total machine hour",39.6]
["Square feet per piece",6.4]
["Pieces per total machine hour",6337]
["Pieces per run machine hour",8750]
["Pieces per setup",10555]
["Machine hours - run (annual)",3000]
["Revenue per machine hour",2078.076]
[]
["Machine #2"]
["Flexo-folder gluer #2 (>40 x 100\", and < or = 50 x 135\")"]
["1000 sq. feet per total machine hour",64.4]
["Square feet per piece",14.7]
["Pieces per total machine hour",4504]
["Pieces per run machine hour",6818]
["Pieces per setup",8126]
["Machine hours - run (annual)",3000]
["Revenue per machine hour",3379.4973333333337]
[]
["Machine #3"]
["Flexo-folder gluer #3 (>50 x 135\", and < or = 75 x 170\")"]
["1000 sq. feet per total machine hour",45.5]
["Square feet per piece",23]
["Pieces per total machine hour",2365]
["Pieces per run machine hour",3242]
["Pieces per setup",4659]
["Machine hours - run (annual)",3000]
["Revenue per machine hour",2387.6883333333335]
[]
["Machine #4"]
["Specialty Folder Gluer"]
["1000 sq. feet per total machine hour",13.5]
["Square feet per piece",11]
["Pieces per total machine hour",2090]
["Pieces per run machine hour",2834]
["Pieces per setup",1530]
["Machine hours - run (annual)",3000]
["Revenue per machine hour",708.435]
[]
["Please use below only if you plan to upgrade more than 4 converting machines."]
[]
["Machine #5"]
["Additional machine"]
["1000 sq. feet per total machine hour"]
["Square feet per piece"]
["Pieces per total machine hour"]
["Pieces per run machine hour"]
["Pieces per setup"]
["Machine hours - run (annual)"]
["Revenue per machine hour"]
[]
["Machine #6"]
["Additional machine"]
["1000 sq. feet per total machine hour"]
["Square feet per piece"]
["Pieces per total machine hour"]
["Pieces per run machine hour"]
["Pieces per setup"]
["Machine hours - run (annual)"]
["Revenue per machine hour"]
[]
["Machine #7"]
["Additional machine"]
["1000 sq. feet per total machine hour"]
["Square feet per piece"]
["Pieces per total machine hour"]
["Pieces per run machine hour"]
["Pieces per setup"]
["Machine hours - run (annual)"]
["Revenue per machine hour"]
[]
["Machine #8"]
["Additional machine"]
["1000 sq. feet per total machine hour"]
["Square feet per piece"]
["Pieces per total machine hour"]
["Pieces per run machine hour"]
["Pieces per setup"]
["Machine hours - run (annual)"]
["Revenue per machine hour"]
[]
["RFID upgrade time-frame"]
["The following assumptions are used as inputs to several calculators such as machine, labeler and reader, and productivity. Please put a \"1\" in the Year column to signify what year you plan to make the upgrade. Leave all other cells blank. "]
[null,null,"Year 1","Year 2","Year 3"]
["Flexo-folder gluer #1 (< or = 28 x 72\")",null,null,1]
["Flexo-folder gluer #2 (>40 x 100\", and < or = 50 x 135\")",null,null,1]
["Flexo-folder gluer #3 (>50 x 135\", and < or = 75 x 170\")",null,null,null,1]
["Specialty Folder Gluer",null,1]
["Additional machine"]
["Additional machine"]
["Additional machine"]
["Additional machine"]
["Total machines with RFID equipment",null,1,3,4]
[]
["Assume: In the XYZ scenario, upgrades to one specialty folder gluer are enough to handle tagging in Year 1. XYZ Corrugated Corp. will need to outfit more flexo-folder gluers to handle the dramatic increase in RFID orders in Year 2 and 3."]

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[]
["Model: RFID Cost/Benefit For US Corrugated Box Manufacturer"]
[]
["BENEFIT ASSUMPTIONS"]
["Processes that benefit the most from RFID require: 1) more granular data (serialization); 2) more timely data; 3) and/or automated data capture (auto-identification)."]
["Forrester explored the RFID benefits to corrugated box plant operations. We believe that the customer service benefits are high. However, the internal operational benefits are limited in the near-term for two reasons: 1) Inventory management is done at the bale level, not the individual box level. Therefore, it is unclear that the tagging of individual boxes will provide additional operational benefits here; and 2) Warehouse management benefits like automated shipping, receiving, and order handling require RFID to be used on all orders, not just the orders for customers with RFID requirements."]
["Assumptions by category of benefit:"]
["1) RFID will provide a crucial benefit that can be measured using \"hard\" financial metrics: keeping the business of customers with RFID requirements. Corrugated box plants that apply RFID tags to finished boxes will perform a value-added service to these customers, thereby also contributing to \"soft\" benefits like improving the customer relationship. The probability that customers will require RFID tagging of finished boxes in the next three years is very high (based on interviews with Top 100 consumer goods suppliers)."]
["2) RFID could decrease the number of customer returns by linking the identity of a damaged box to data about the conditions under which the box was produced (for example: equipment used, run speed, and production crew). This link, however, is often available at the bale level. Therefore, it is unlikely that linking this information at the box level would significantly improve traceability."]
["3) RFID could improve shipping activities by decreasing the time that it takes to ship an order (by, for example, automatically generating an advanced shipping notification), and increasing the accuracy of shipments. However, ASNs are generated and orders are counted at the bale level, not at the box level. It is unlikely that automated counting of boxes will improve the speed or accuracy of shipments."]
["4) RFID could improve receiving activities at off-premise warehouses by allowing all the boxes in a bale to be \"read\" simultaneously. However, there are very few instances where orders are counted at the box level. Moreover, most manufacturers ship direct to the customer from plants rather than using off-site distribution centers with receiving processes. Therefore, it is unlikely that simultaneous reading of all boxes will improve receiving speeds for the corrugated box manufacturer."]
["5) Like other auto-ID technologies such as bar-codes, RFID could improve warehouse processes like order-handling and inventory control, while increasing the productivity of warehouse staff. For example, in larger warehouses inventory can get \"lost\" and must be discarded if it is an outdated spec or is damaged. These processes, however, require RFID to be used across all orders, not just those for specific customers that have RFID requirements. Therefore, it is unlikely that warehouse management benefits will be realized within the three-year timeframe of this analysis."]
["6) RFID can minimize over-shipments to customers by verifying box counts on a truck. This benefit, however, is only fully realized when RFID is used across all orders, not just those bound for specific customers that have RFID requirements. Therefore, it is unlikely that warehouse management benefits will be realized within the three-year timeframe of this analysis."]
["7) RFID can provide operational benefits to a plant when RFID tags are used on raw materials, plant assets, or bales/pallets of finished boxes. These benefits are outside the scope of this model since they require separate RFID deployments."]

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[]
["Model: RFID Cost/Benefit For US Corrugated Box Manufacturer"]
[]
["Tag calculator"]
[]
["Tags, Cost Summary","Year 1","Year 2","Year 3","Total"]
["Tags",304184.25,2027895,5069737.5,7401816.75]
[]
["INPUT"]
["To see the data in a row, click on the \"+\" sign to the left of the row."]
["Cells colored blue are modifiable variable"]
["Cells color pink are modifiable variables that bear a disproportionate impact on costs. Please pay special care when modifying these assumptions."]
["All default cost assumptions in this model were made using cost estimates gathered from June to August, 2004."]
[]
["Orders with RFID requirements"]
[]
[null,"Year 1","Year 2","Year 3"]
["Percent of orders with RFID requirements",0.02,0.2,0.5]
["Number of orders with RFID requirements",70,700,1750]
[]
["Assume: Customers will require corrugated box suppliers to tag finished boxes only after a critical mass of their own case volume needs RFID tags. Until then, most customers will apply tags in their own distribution centers using a \"slap-and-ship\" approach, or in their own manufacturing plants using automated case erectors. Therefore, volume in Year 1 is low compared to Year 2 and 3."]
["Assume: The number of orders with RFID requirements will increase dramatically as RFID early adopters like Wal-Mart, Target, Albertsons, Best Buy, and the Department of the Defense require consumer goods manufacturers to expand their RFID deployments each year. By 2007, these companies expect all their suppliers to tag cases shipped domestically."]
[]
["Tag requirements"]
[]
[null,"Year 1","Year 2","Year 3"]
["Number of orders with RFID requirements",70,700,1750]
["Average order size (pieces)",14484.964285714286,14484.964285714286,14484.964285714286]
["Number of boxes requiring RFID tags",1013947.5,10139475,25348687.5]
[]
["Note: The average size of an order requiring RFID tags could differ from the average order size. For example, a manufacturer could pool RFID orders and run them at the same time in order to minimize overhead costs like set-up time. Still, a manufacturer must balance an operational improvement with a potential decrease in customer service levels. Because of this, we have assumed that the average size of an order requiring RFID tags is the same as the average order size."]
[]
[]
["Tag costs"]
["Order quantity up to:","Cost per tag"]
[10000000,0.3]
[50000000,0.2]
[100000000,0.15]
[]
["Tag costs, by year","Year 1","Year 2","Year 3"]
["Tag requirements",1013947.5,10139475,25348687.5]
["Tag costs (per tag)",0.3,0.2,0.2]
["Tag costs (total)",304184.25,2027895,5069737.5]
[]
["Assume: Tag costs are for passive EPC tags that comply with Gen 2 specifications. Tag costs depend on order quantity."]
["Note: Tag costs are one of the most highly contested costs today. These numbers are based on interviews with tag vendors and have been verified by user interviews. Still, we advise that you take extra care (i.e. test costs on multiple sources) if you modify cost per tag."]
[]
["Tag costs, accrued by box plant directly","Year 1","Year 2","Year 3"]
["Tag costs",304184.25,2027895,5069737.5]
["Tag costs, accrued by box plant directly",1,1,1]
["Tag costs, accrued by box plant directly",304184.25,2027895,5069737.5]
[]
["Note: Given the high costs of tags, many corrugated box manufacturers will pass through tag costs to customers. To calculate for this scenario, set the \"tag costs, accrued by box plant directly\" to 0%."]

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[]
["Model: RFID Cost/Benefit For US Corrugated Box Manufacturer"]
[]
["Converting machine calculator"]
[]
["Machine upgrades, cost summary","Year 1","Year 2","Year 3","Total"]
["New converting machine",0,0,0,0]
["Machine modification",150000,300000,150000,600000]
["Scheduled down-time",56674.799999999996,436605.8666666667,191015.06666666668,684295.7333333334]
["Machine commissioning",3797.2115999999996,29252.593066666668,12798.009466666666,45847.81413333333]
["Total",210472.0116,765858.4597333333,353813.0761333333,1330143.5474666667]
[]
["INPUT"]
["To see the data in a row, click on the \"+\" sign to the left of the row."]
["Cells colored blue are modifiable variable"]
["Cells color pink are modifiable variables that bear a disproportionate impact on costs. Please pay special care when modifying these assumptions."]
["All default cost assumptions in this model were made using cost estimates gathered from June to August, 2004."]
[]
["Converting machine purchase"]
[null,"Cost of machine (used)"]
["Specialty folder-gluer",400000]
[]
["New machine costs","Year 1","Year 2","Year 3"]
["Specialty folder-gluer purchase",0,0,0]
["Total",0,0,0]
[]
["Assume: Most companies will upgrade existing converting machines rather than purchasing another converting machine."]
["Assume: Still, the purchase of a converting machine may be the best option in special situations, like when machine upgrades are improbable (for example, space doesn't permit a line extension)."]
["Assume: If a company must purchase another machine, it will purchase a used machine whenever possible."]
[]
["Machine modification"]
[]
["Cost to modify a machine",150000]
[]
["Modification costs, by year","Year 1","Year 2","Year 3"]
["Flexo-folder gluer #1 (< or = 28 x 72\")","",150000,""]
["Flexo-folder gluer #2 (>40 x 100\", and < or = 50 x 135\")","",150000,""]
["Flexo-folder gluer #3 (>50 x 135\", and < or = 75 x 170\")","","",150000]
["Specialty Folder Gluer",150000,"",""]
["Additional machine","","",""]
["Additional machine","","",""]
["Additional machine","","",""]
["Additional machine","","",""]
["Total",150000,300000,150000]
[]
["Assume: Machine modifications include adding new equipment like folding rail extensions and miscellaneous conveyors, and installation resources for disassembly, rigging, and erection."]
["Assume: These costs are difficult to calculate, because there are very few existing RFID deployments in high-speed production environments."]
["Assume:  In some pilots, manufacturers have extended rails by as much as 10 feet. For major machine modifications such as this, average costs can be around $150,000 (Source: vendor interviews)."]
["Note: Some manufacturers will minimize the machine modifications, and instead modify labelers and canopy systems, because of the high capital costs of major machine modifications and the limited floor space to extend a line. To customize this model using a minimal machine modification cost, we suggest using a value of $50,000."]
[]
["Scheduled down-time (one-time cost)"]
[]
["Down-time for machine modification (hours)",80]
[]
["Down-time costs, by year","Year 1","Year 2","Year 3"]
["Flexo-folder gluer #1 (< or = 28 x 72\")","",166246.08000000002,""]
["Flexo-folder gluer #2 (>40 x 100\", and < or = 50 x 135\")","",270359.7866666667,""]
["Flexo-folder gluer #3 (>50 x 135\", and < or = 75 x 170\")","","",191015.06666666668]
["Specialty Folder Gluer",56674.799999999996,"",""]
["Additional machine","","",""]
["Additional machine","","",""]
["Additional machine","","",""]
["Additional machine","","",""]
["Total",56674.799999999996,436605.8666666667,191015.06666666668]
[]
["Assume: Upgrading a conversion line will require scheduled down-time for installing labelers and readers, and disassembling, rigging, and erecting machinery."]
["Assume: These costs are difficult to calculate, because there are very few existing RFID deployments in high-speed production environments. Down-time hours are based on interviews with equipment manufacturers and FBA members."]
["Note: In cases where plants operate 5 days a week, most manufacturers will choose to modify the machine during weekend off-hours. In this case, scheduled down-time will have a smaller impact on productivity. If you chose this approach, then we suggest using a fewer down-time hours such as 50 hours. "]
["Note: In cases where plants operate 2 shifts, some manufacturers will choose to minimize down-time costs by running orders on other machines using a temporary 3rd shift. This approach will increase over-time labor costs and, potentially, inventory and warehousing costs."]
[]
["Commissioning (one-time cost)"]
[]
["Commissioning time to test RFID equipment"]
["Line speed (percent of maximum)",0.33]
["Duration (hours)",8]
[]
["Commissioning costs","Revenue per machine hour (commissioning time)","Lost revenue per machine hour","Lost revenue total"]
["Flexo-folder gluer #1 (< or = 28 x 72\")",685.76508,1392.31092,11138.48736]
["Flexo-folder gluer #2 (>40 x 100\", and < or = 50 x 135\")",1115.23412,2264.2632133333336,18114.10570666667]
["Flexo-folder gluer #3 (>50 x 135\", and < or = 75 x 170\")",787.9371500000001,1599.7511833333333,12798.009466666666]
["Specialty Folder Gluer",233.78355,474.65144999999995,3797.2115999999996]
["Additional machine",0,0,0]
["Additional machine",0,0,0]
["Additional machine",0,0,0]
["Additional machine",0,0,0]
[]
["Commissioning costs, by year","Year 1","Year 2","Year 3"]
["Flexo-folder gluer #1 (< or = 28 x 72\")","",11138.48736,""]
["Flexo-folder gluer #2 (>40 x 100\", and < or = 50 x 135\")","",18114.10570666667,""]
["Flexo-folder gluer #3 (>50 x 135\", and < or = 75 x 170\")","","",12798.009466666666]
["Specialty Folder Gluer",3797.2115999999996,"",""]
["Additional machine","","",""]
["Additional machine","","",""]
["Additional machine","","",""]
["Additional machine","","",""]
["Total",3797.2115999999996,29252.593066666668,12798.009466666666]
[]
["Assume: Line must run a greatly reduced capacity for a limited duration of time, e.g. one shift, in order to test machine upgrades."]

{"sheet":"Labeler and reader calculator","index":6,"n_rows":125,"n_cols":5,"rows_kept":125,"cut":false,"hidden":false,"merged":[[14,0,14,1],[15,0,15,1],[123,0,123,3],[111,0,111,3],[112,0,112,3],[109,0,109,3],[110,0,110,3],[91,0,91,3],[124,0,124,3],[90,0,90,3],[39,0,39,3],[16,0,16,1],[23,0,23,3],[56,0,56,3]],"flags":["formulas_cached_only"]}
[]
["Model: RFID Cost/Benefit For US Corrugated Box Manufacturer"]
[]
["RFID labeler and reader calculator"]
[]
["Labeler and reader, Cost summary","Year 1","Year 2","Year 3","Total"]
["Labeler",100000,200000,50000,350000]
["Reader",5000,10000,5000,20000]
["Software license",85000,0,0,85000]
["Software maintenance",0,18700,18700,37400]
["Total",190000,228700,73700,492400]
[]
["Input"]
["To see the data in a row, click on the \"+\" sign to the left of the row."]
["Cells colored blue are modifiable variable"]
["Cells color pink are modifiable variables that bear a disproportionate impact on costs. Please pay special care when modifying these assumptions."]
["All default cost assumptions in this model were made using cost estimates gathered from June to August, 2004."]
[]
["Piece Dimension Assumptions"]
["Average blank length (feet)",3.5]
["Average space between blanks (feet)",0.25]
["Average length + space (feet)",3.75]
[]
["Source: Industry data is not readily available, and so this is the best estimate of the FBA RFID Task Group."]
[]
["Maximum line speed (80% capacity)"]
[]
["Industry averages for line speed","Pieces per run machine hour"]
["Flexo-folder gluer #1 (< or = 28 x 72\")",8750]
["Flexo-folder gluer #2 (>40 x 100\", and < or = 50 x 135\")",6818]
["Flexo-folder gluer #3 (>50 x 135\", and < or = 75 x 170\")",3242]
["Specialty Folder Gluer",2834]
["Additional machine",0]
["Additional machine",0]
["Additional machine",0]
["Additional machine",0]
[]
["Line speed as a percent of capacity",0.7]
[]
["Source of line speed as a percent of capacity: Industry data is not readily available, and so this is the best estimate of the FBA RFID Task Group."]
[]
["Maximum line speed (80% capacity)","Pieces per run machine hour","Pieces per second","Feet per second"]
["Flexo-folder gluer #1 (< or = 28 x 72\")",10000,2.7777777777777777,10.416666666666666]
["Flexo-folder gluer #2 (>40 x 100\", and < or = 50 x 135\")",7792,2.1644444444444444,8.116666666666667]
["Flexo-folder gluer #3 (>50 x 135\", and < or = 75 x 170\")",3705.1428571428573,1.0292063492063492,3.8595238095238096]
["Specialty Folder Gluer",3238.857142857143,0.8996825396825398,3.3738095238095243]
["Additional machine",0,0,0]
["Additional machine",0,0,0]
["Additional machine",0,0,0]
["Additional machine",0,0,0]
[]
["Applicator rate"]
[null,"Feet per second","Applicator rate (pieces per second)","Applicator rate (pieces per hour)"]
["Labeler dispense speed",5.56,1.4826666666666666,5337.599999999999]
[]
["Assume: Line speed and applicator dispense speed must be equal in order for labels to be applied correctly."]
["Assume: The fastest labelers on the market today have a dispense speed of 5,000 inches per minute, or 6.94 feet per second (Source: vendor interviews)."]
["Assume: Labelers will most often run at 80% capacity (4,000 inches per minute, or 5.56 feet per second)."]
[]
["Labeler(s) per machine"]
["Equipment","Raw number of applicators to handle machine line speeds","Number of applicators, per machine"]
["Flexo-folder gluer #1 (< or = 28 x 72\")",1.8735011990407675,2]
["Flexo-folder gluer #2 (>40 x 100\", and < or = 50 x 135\")",1.4598321342925662,2]
["Flexo-folder gluer #3 (>50 x 135\", and < or = 75 x 170\")",0.6941589585474479,1]
["Specialty Folder Gluer",0.6068002740664612,1]
["Additional machine",0,0]
["Additional machine",0,0]
["Additional machine",0,0]
["Additional machine",0,0]
[]
["Assume: Number of applicators must be a whole number."]
[]
["Labeler Cost"]
[]
["Cost of labeler",50000]
[]
[]
["Labeler costs, by year","Year 1","Year 2","Year 3"]
["Flexo-folder gluer #1 (< or = 28 x 72\")","",100000,""]
["Flexo-folder gluer #2 (>40 x 100\", and < or = 50 x 135\")","",100000,""]
["Flexo-folder gluer #3 (>50 x 135\", and < or = 75 x 170\")","","",50000]
["Specialty Folder Gluer",50000,"",""]
["Additional machine","","",""]
["Additional machine","","",""]
["Additional machine","","",""]
["Additional machine","","",""]
["Sub-Total",50000,200000,50000]
["Labeler for offline tag verification and programming",50000]
["Total",100000,200000,50000]
[]
["Assume: Today, it is very difficult for a labeler operating on a high-speed line to verify that a tag works. Therefore, a corrugated box manufacturer will initially verify tag readability in an offline operation."]
["Assume: Today, it is very difficult for a labeler operating on a high-speed line to program a tag. Therefore, a corrugated box manufacturer will either purchase pre-programmed tags from a label supplier, or program in an offline operation."]
[]
["Reader"]
[]
["Cost of reader",5000]
[]
[]
["Reader costs, by year","Year 1","Year 2","Year 3"]
["Flexo-folder gluer #1 (< or = 28 x 72\")","",5000,""]
["Flexo-folder gluer #2 (>40 x 100\", and < or = 50 x 135\")","",5000,""]
["Flexo-folder gluer #3 (>50 x 135\", and < or = 75 x 170\")","","",5000]
["Specialty Folder Gluer",5000,"",""]
["Additional machine","","",""]
["Additional machine","","",""]
["Additional machine","","",""]
["Additional machine","","",""]
["Total",5000,10000,5000]
[]
["Assume: A reader is needed further down the line to do a second read that verifies that a tag works once it has been applied to the box. This is because tag placement can compromise readability. Still, the incidents of unreadable tags will be low since the tags were first verified in an offline process."]
["Assume: Since incidents of unreadable tags will be low, dead tags can be managed through typical diversion processes. For example, at the point of the second read, a box with a dead tag could receive an ink mark that alerts a person to pull it from a bale."]
["Assume: Only one fixed conveyor reader is needed per line. However, to read at line speeds, additional RFID middleware is required (see below)."]
["Assume: Costs of reader include hardware, antennas, power supply, cabling, and reader software (but not RFID middleware). "]
[]
["Software"]
[]
["License cost",85000]
["Maintenance (percent of license cost)",0.22]
[]
["Software costs, by year","Year 1","Year 2","Year 3"]
["Software license",85000]
["Software maintenance",null,18700,18700]
[]
["Assume: According to FBA member and vendor interviews, additional RFID middleware is required to handle the multiple reads and filtering that occur on a high-speed line."]
["Source of license costs: Interviews with RFID middleware vendors."]

{"sheet":"Productivity calculator","index":7,"n_rows":216,"n_cols":5,"rows_kept":216,"cut":false,"hidden":false,"merged":[[207,0,207,3],[195,0,195,3],[85,0,85,3],[103,0,103,3],[178,0,178,3],[34,0,34,3],[86,0,86,3],[14,0,14,1],[15,0,15,1],[32,0,32,3],[33,0,33,3],[16,0,16,1],[47,0,47,3]],"flags":["formulas_cached_only"]}
[]
["Model: RFID Cost/Benefit For US Corrugated Box Manufacturer"]
[]
["Productivity calculator"]
[]
["Productivity, Cost summary","Year 1","Year 2","Year 3","Total"]
["Setup",5785.5525,143873.52777777778,311853.5243055556,461512.60458333336]
["Operational down-time",63759.149999999994,554940.75,769832.7000000001,1388532.6]
["Line speed reduction",58529.44347250002,269683.51226802607,867965.0424046868,1196177.998145213]
["Headcount",49396.75,138310.90000000002,197587,385294.65]
["Total",177470.89597250003,1106808.6900458038,2147238.2667102423,3431517.852728546]
[]
["INPUT"]
["To see the data in a row, click on the \"+\" sign to the left of the row."]
["Cells colored blue are modifiable variable"]
["Cells color pink are modifiable variables that bear a disproportionate impact on costs. Please pay special care when modifying these assumptions."]
["All default cost assumptions in this model were made using cost estimates gathered from June to August, 2004."]
[]
["Setup"]
[null,"Year 1","Year 2","Year 3"]
["Additional setup time",7,6,5]
[]
["Cost per minute"]
["Flexo-folder gluer #1 (< or = 28 x 72\")",34.6346]
["Flexo-folder gluer #2 (>40 x 100\", and < or = 50 x 135\")",56.32495555555556]
["Flexo-folder gluer #3 (>50 x 135\", and < or = 75 x 170\")",39.794805555555556]
["Specialty Folder Gluer",11.80725]
["Additional machine",0]
["Additional machine",0]
["Additional machine",0]
["Additional machine",0]
[]
["Assume: Additional setup time is required since crews must perform additional tasks like: 1) positioning labelers to work with specific box widths; 2) loading rolls of label stock; 3) threading labels through the labeler; and 4) checking the label position on the box."]
["Assume: These times are difficult to calculate, because there are very few existing RFID deployments in high-speed production environments. Time assumptions are based on comparable activities, like setting up a glue system."]
["Assume: These will most likely decrease as machine operators become more familiar with RFID setup. Also, some engineering tactics will also bring down setup times (e.g. linear bearings and locking devices to automatically position and secure labelers, and techniques to stage label rolls so that labeler does not need to be loaded and threaded as frequently)."]
[]
["Runs by machine for RFID orders (annual)","Year 1","Year 2","Year 3"]
["Flexo-folder gluer #1 (< or = 28 x 72\")",0,233.33333333333334,437.5]
["Flexo-folder gluer #2 (>40 x 100\", and < or = 50 x 135\")",0,233.33333333333334,437.5]
["Flexo-folder gluer #3 (>50 x 135\", and < or = 75 x 170\")",0,0,437.5]
["Specialty Folder Gluer",70,233.33333333333334,437.5]
["Additional machine",0,0,0]
["Additional machine",0,0,0]
["Additional machine",0,0,0]
["Additional machine",0,0,0]
["Total",70,700,1750]
[]
["Note: These numbers are calculated by dividing the total number of RFID orders by the number of machines with RFID equipment. We assume one RFID set-up per RFID order. Why? A box manufacturer will often run combinations of the same size box for different products. In these cases, printing and RFID labelling will change between these items. However, these changes should not be substantial enough to add significant set-up time."]
[]
["Additional setup costs, annual","Year 1","Year 2","Year 3"]
["Flexo-folder gluer #1 (< or = 28 x 72\")",0,48488.439999999995,75763.1875]
["Flexo-folder gluer #2 (>40 x 100\", and < or = 50 x 135\")",0,78854.93777777778,123210.8402777778]
["Flexo-folder gluer #3 (>50 x 135\", and < or = 75 x 170\")",0,0,87051.13715277778]
["Specialty Folder Gluer",5785.5525,16530.15,25828.359374999996]
["Additional machine",0,0,0]
["Additional machine",0,0,0]
["Additional machine",0,0,0]
["Additional machine",0,0,0]
["Total",5785.5525,143873.52777777778,311853.5243055556]
[]
["Operational down-time"]
[null,"Year 1","Year 2","Year 3"]
["Operational down-time",0.03,0.03,0.03]
[]
["Operational down-time (hours)","Year 1","Year 2","Year 3"]
["Flexo-folder gluer #1 (< or = 28 x 72\")","",90,90]
["Flexo-folder gluer #2 (>40 x 100\", and < or = 50 x 135\")","",90,90]
["Flexo-folder gluer #3 (>50 x 135\", and < or = 75 x 170\")","","",90]
["Specialty Folder Gluer",90,90,90]
["Additional machine","","",""]
["Additional machine","","",""]
["Additional machine","","",""]
["Additional machine","","",""]
[]
["Operational down-time costs","Year 1","Year 2","Year 3"]
["Flexo-folder gluer #1 (< or = 28 x 72\")","",187026.84,187026.84]
["Flexo-folder gluer #2 (>40 x 100\", and < or = 50 x 135\")","",304154.76,304154.76]
["Flexo-folder gluer #3 (>50 x 135\", and < or = 75 x 170\")","","",214891.95]
["Specialty Folder Gluer",63759.149999999994,63759.149999999994,63759.149999999994]
["Additional machine","","",""]
["Additional machine","","",""]
["Additional machine","","",""]
["Additional machine","","",""]
["Total",63759.149999999994,554940.75,769832.7000000001]
[]
["Assume: Production down-time will increase due to additional tasks like labeler re-loading, and production glitches like labeler jams, and maintenance."]
["Note: While this model assumes a fixed operational down-time, these times could decrease as RFID labelers improve in functionality."]
[]
["Line speed reduction"]
[]
["Pieces per run machine hour"]
["Flexo-folder gluer #1 (< or = 28 x 72\")",8750]
["Flexo-folder gluer #2 (>40 x 100\", and < or = 50 x 135\")",6818]
["Flexo-folder gluer #3 (>50 x 135\", and < or = 75 x 170\")",3242]
["Specialty Folder Gluer",2834]
["Additional machine",0]
["Additional machine",0]
["Additional machine",0]
["Additional machine",0]
[]
[null,"Year 1","Year 2","Year 3"]
["Productivity hit",0.1,0.05,0.05]
[]
["Assume: Introducing a \"value-added\" operation on a machine will always slow that machines operations. The productivity hit in Year Two and Year Three is lower as RFID operations a more common operating occurrence."]
[]
[null,"Year 1","Year 2","Year 3"]
["Reduced line speed (pieces per hour) for RFID runs"]
["Flexo-folder gluer #1 (< or = 28 x 72\")","",8312.5,8312.5]
["Flexo-folder gluer #2 (>40 x 100\", and < or = 50 x 135\")","",6477.1,6477.1]
["Flexo-folder gluer #3 (>50 x 135\", and < or = 75 x 170\")","","",3079.9]
["Specialty Folder Gluer",2550.6,2692.3,2692.3]
["Additional machine","","",""]
["Additional machine","","",""]
["Additional machine","","",""]
["Additional machine","","",""]
[]
["Difference between normal line speed and reduced line speed (pieces per hour)"]
[null,"Year 1","Year 2","Year 3"]
["Flexo-folder gluer #1 (< or = 28 x 72\")","",437.5,437.5]
["Flexo-folder gluer #2 (>40 x 100\", and < or = 50 x 135\")","",340.89999999999964,340.89999999999964]
["Flexo-folder gluer #3 (>50 x 135\", and < or = 75 x 170\")","","",162.0999999999999]
["Specialty Folder Gluer",283.4000000000001,141.69999999999982,141.69999999999982]
["Additional machine","","",""]
["Additional machine","","",""]
["Additional machine","","",""]
["Additional machine","","",""]
[]
["Average Order size",14484.964285714286]
[]
["Hours to run RFID orders"]
[null,"Year 1","Year 2","Year 3"]
["Flexo-folder gluer #1 (< or = 28 x 72\")","",406.59548872180454,762.3665413533835]
["Flexo-folder gluer #2 (>40 x 100\", and < or = 50 x 135\")","",521.8114588318847,978.3964853097837]
["Flexo-folder gluer #3 (>50 x 135\", and < or = 75 x 170\")","","",2057.590140913666]
["Specialty Folder Gluer",397.5329334274289,1255.3671581918804,2353.813421609776]
["Additional machine","","",""]
["Additional machine","","",""]
["Additional machine","","",""]
["Additional machine","","",""]
[]
["Note: Base this estimate on total number of orders with RFID requirements and machine hours to run each order"]
[]
["Difference between normal line speed and reduced line speed (total pieces annually)"]
[null,"Year 1","Year 2","Year 3"]
["Flexo-folder gluer #1 (< or = 28 x 72\")","",177885.5263157895,333535.3618421053]
["Flexo-folder gluer #2 (>40 x 100\", and < or = 50 x 135\")","",177885.5263157893,333535.3618421049]
["Flexo-folder gluer #3 (>50 x 135\", and < or = 75 x 170\")","","",333535.36184210505]
["Specialty Folder Gluer",112660.83333333337,177885.52631578923,333535.3618421048]
["Additional machine","","",""]
["Additional machine","","",""]
["Additional machine","","",""]
["Additional machine","","",""]
[]
["Margin per piece",0.1]
[]
["Cost per piece"]
["Flexo-folder gluer #1 (< or = 28 x 72\")",0.3022656]
["Flexo-folder gluer #2 (>40 x 100\", and < or = 50 x 135\")",0.6942663]
["Flexo-folder gluer #3 (>50 x 135\", and < or = 75 x 170\")",1.086267]
["Specialty Folder Gluer",0.519519]
["Additional machine",0]
["Additional machine",0]
["Additional machine",0]
["Additional machine",0]
[]
["Note: Cost per piece is calculated by subtracting margin from revenue per piece"]
[]
["Cost of line speed reduction","Year 1","Year 2","Year 3"]
["Flexo-folder gluer #1 (< or = 28 x 72\")","",53768.675343157905,100816.26626842107]
["Flexo-folder gluer #2 (>40 x 100\", and < or = 50 x 135\")","",123499.92617881566,231562.36158527934]
["Flexo-folder gluer #3 (>50 x 135\", and < or = 75 x 170\")","","",362308.45690213796]
["Specialty Folder Gluer",58529.44347250002,92414.9107460525,173277.95764884845]
["Additional machine","","",""]
["Additional machine","","",""]
["Additional machine","","",""]
["Additional machine","","",""]
["Total",58529.44347250002,269683.51226802607,867965.0424046868]
[]
["Note: Many companies will calculate these costs by evaluating the overtime costs to run a machine. To calculate by this method, input overtime cost per piece in B160 through B167."]
[]
["Headcount"]
[]
["Fully-loaded annual costs, hourly employee","Hours worked, annual","Hourly earnings","Annual earnings"]
["Regular hours, annual",2000,14.16,28320]
["Overtime hours, annual",100,20.78,2078]
["Total, annual earnings",null,null,30398]
["Benefits",null,null,0.3]
["Total, fully-loaded costs",null,null,39517.4]
[]
["Assume: Regular hours based on 5 day work week, 8 hour shift, 50 working weeks a year."]
["Assume: Overtime hours based on 2 hours per week, 50 working weeks a year."]
[]
[null,"Year 1","Year 2","Year 3"]
["RFID headcount in each year, hourly employee",1,3,4]
[]
["Assume: RFID will require additional headcount for machine set-up and monitoring (e.g. pulling boxes with bad tags), and programming and verifying offline. For example, most label rolls have 10,000 labels per roll. On a line moving at 10,000 blanks an hour, the roll needs to be replaced once an hour. One person can cover multiple lines when they are in the same proximity, but additional headcount is required as more machines are upgraded with RFID equipment."]
[null,"Year 1","Year 2","Year 3"]
["RFID headcount costs in each year, hourly employee",39517.4,118552.20000000001,158069.6]
[]
["Fully-loaded annual costs, salaried employee",null,null,"Annual earnings"]
["Salary",null,null,50000]
["Benefits",null,null,0.3]
["Total, fully-loaded costs",null,null,65000]
[]
[null,"Year 1","Year 2","Year 3"]
["RFID headcount in each year, salaried employee",0.25,0.5,1]
[]
["Assume: RFID will require additional salaried headcount for materials sourcing and management, RFID operational supervision, and customer negotiations regarding RFID."]
[]
[null,"Year 1","Year 2","Year 3"]
["RFID headcount costs, salaried employee",9879.35,19758.7,39517.4]
[]
[null,"Year 1","Year 2","Year 3"]
["Headcount costs, hourly employee by year",39517.4,118552.20000000001,158069.6]
["Headcount costs, salaried employee",9879.35,19758.7,39517.4]
["Total RFID headcount costs",49396.75,138310.90000000002,197587]

{"sheet":"Returns and Waste calculator","index":8,"n_rows":122,"n_cols":5,"rows_kept":122,"cut":false,"hidden":false,"merged":[[68,0,68,3],[121,0,121,3],[44,0,44,3],[15,0,15,1],[16,0,16,1],[114,0,114,3],[50,0,50,3],[61,0,61,3],[106,0,106,3],[62,0,62,3]],"flags":["formulas_cached_only"]}
[]
["Model: RFID Cost/Benefit For US Corrugated Box Manufacturer"]
[]
["Returns and waste calculator"]
[]
["Returns and waste, Cost summary","Year 1","Year 2","Year 3","Total"]
["Customer returns",15661.2302955,102250.01471624999,170416.69119374998,288327.9362055]
["Dunnage",0,0,0,0]
["Set-up waste",540.603,4706.03,11765.074999999999,17011.708]
["Run waste",1654.24518,47556.786165,73149.35381249999,122360.38515749999]
["Tag waste",45627.6375,202789.5,101394.75,349811.8875]
["Total",63483.715975499996,357302.33088125,356725.87000625,777511.916863]
[]
["INPUT"]
["To see the data in a row, click on the \"+\" sign to the left of the row."]
["Cells colored blue are modifiable variable"]
["Cells color pink are modifiable variables that bear a disproportionate impact on costs. Please pay special care when modifying these assumptions."]
[]
["Customer returns"]
[null,"Year 1","Year 2","Year 3"]
["Customer returns, Percent of RFID boxes returned",0.02,0.015,0.01]
[]
["Assume: Customer returns will decrease over time due to tag improvements that increase durability."]
[]
["Average cost per box (piece)"]
["Revenue per msf",52.47666666666667]
["Revenue per square foot",0.052476666666666665]
["Average box size in square feet",10]
["Margin per box",0.1]
["Cost per box",0.47228999999999993]
[]
[null,"Year 1","Year 2","Year 3"]
["Cost per box (piece)",0.47228999999999993,0.47228999999999993,0.47228999999999993]
["Tag cost",0.3,0.2,0.2]
["Total piece cost",0.7722899999999999,0.6722899999999999,0.6722899999999999]
[]
["Assume: Tag costs will increase the cost of returns."]
[]
["Cost of customer returns","Year 1","Year 2","Year 3"]
["RFID boxes returned",20278.95,152092.125,253486.875]
["Total piece cost",0.7722899999999999,0.6722899999999999,0.6722899999999999]
["Cost of shipping, handling, and rework (per piece)",0,0,0]
["Customer returns cost",15661.2302955,102250.01471624999,170416.69119374998]
[]
["Assume: These costs are difficult to calculate, because there are very few existing RFID deployments in corrugated box plants. Still, we expect the percent of customer returns to increase due to discrepancies between read rates at the customer versus read rates in the box plant. These discrepancies are the result of a number of things such as: 1) tag damage during shipment; and 2) a different reader environment in a customer facility."]
[]
["Dunnage"]
[null,"Year 1","Year 2","Year 3"]
["Estimated additional dunnage, per year",0,0,0]
[]
["Assume: Some manufacturers will proactively minimize customer returns by increasing the padding and support materials in a truck."]
[]
["Setup Waste"]
[]
["Additional pieces used during setup process",10]
[]
["Setup waste costs","Year 1","Year 2","Year 3"]
["RFID runs",70,700,1750]
["Cost per piece",0.7722899999999999,0.6722899999999999,0.6722899999999999]
["Setup waste costs, by year",540.603,4706.03,11765.074999999999]
[]
["Assume: RFID setup will require additional pieces in order to ensure that the labeler is applying tags in the correct position on the box."]
["Note: In some pilots, there were no additional pieces per setup, since tag application was tested at the same time as testing glue and ink systems. To be conservative, however, we assumed some additional pieces per setup."]
[]
["Run Waste"]
[null,"Year 1","Year 2","Year 3"]
["Pieces per run (percent)",0.02,0.015,0.01]
[]
["Assume: Run waste will decrease over time due to tag improvements that reduce the likelihood of bad tags that are the result of poor placement."]
[]
["Pieces per run"]
["Flexo-folder gluer #1 (< or = 28 x 72\")",10555]
["Flexo-folder gluer #2 (>40 x 100\", and < or = 50 x 135\")",8126]
["Flexo-folder gluer #3 (>50 x 135\", and < or = 75 x 170\")",4659]
["Specialty Folder Gluer",1530]
["Additional machine",0]
["Additional machine",0]
["Additional machine",0]
["Additional machine",0]
[]
["Note: The above values are labelled as pieces per set-up in the sheet \"Overview of XYZ\""]
[]
["Runs by machine for RFID orders (annual)","Year 1","Year 2","Year 3"]
["Flexo-folder gluer #1 (< or = 28 x 72\")",0,233.33333333333334,437.5]
["Flexo-folder gluer #2 (>40 x 100\", and < or = 50 x 135\")",0,233.33333333333334,437.5]
["Flexo-folder gluer #3 (>50 x 135\", and < or = 75 x 170\")",0,0,437.5]
["Specialty Folder Gluer",70,233.33333333333334,437.5]
["Additional machine",0,0,0]
["Additional machine",0,0,0]
["Additional machine",0,0,0]
["Additional machine",0,0,0]
["Total",70,700,1750]
[]
["Cost per piece",0.7722899999999999,0.6722899999999999,0.6722899999999999]
[]
["Run waste costs, by machine","Year 1","Year 2","Year 3"]
["Flexo-folder gluer #1 (< or = 28 x 72\")",0,24836.073324999998,31045.09165625]
["Flexo-folder gluer #2 (>40 x 100\", and < or = 50 x 135\")",0,19120.599889999998,23900.749862499997]
["Flexo-folder gluer #3 (>50 x 135\", and < or = 75 x 170\")",0,0,13703.371106249999]
["Specialty Folder Gluer",1654.24518,3600.1129499999997,4500.141187499999]
["Additional machine",0,0,0]
["Additional machine",0,0,0]
["Additional machine",0,0,0]
["Additional machine",0,0,0]
["Run waste costs, by year",1654.24518,47556.786165,73149.35381249999]
[]
["Assume: These costs are difficult to calculate, because there are very few existing RFID deployments in corrugated box plants. Run waste will increase due to bad reads originating in poor tag placement and production glitches with RFID application."]
[]
["Tag waste"]
[null,"Year 1","Year 2","Year 3"]
["Percent of tags that are defective",0.15,0.1,0.02,"zeroed out tag waste"]
["Additional tags to cover customer requirements",152092.125,1013947.5,506973.75,"percent pass through to tag supplier"]
["Tag waste",45627.6375,202789.5,101394.75]
[]
["Assume: Percent of defective tags decreases as tag manufacturers standardize and improve Gen 2 production processes. We have assumed that most defective tags will be identified during the first read verification that occurs during an offline process."]
[]
["Cost of tag waste, accrued by box plant directly"]
["Tag waste",45627.6375,202789.5,101394.75]
["Cost of tag waste, accrued by box plant directly",1,1,1]
["Cost of tag waste, accrued by box plant directly",45627.6375,202789.5,101394.75]
[]
["Note: Many corrugated box manufacturers will negotiate a refund with tag manufacturers to cover the cost of defective tags. To model this scenario, set the \"cost of tag waste, accrued by box plant directly\" to 0%."]

{"sheet":"Costs","index":9,"n_rows":64,"n_cols":5,"rows_kept":64,"cut":false,"hidden":false,"merged":[[37,0,37,3]],"flags":["formulas_cached_only"]}
[]
["Model: RFID Cost/Benefit For US Corrugated Box Manufacturer"]
[]
["TOTAL COSTS BY PLANT"]
[]
["Capital Expenditure","Year 1","Year 2","Year 3","Total"]
["Equipment (tangible and intangible assets)"]
[]
["Machine upgrades"]
["New converting machine",0,0,0,0]
["Machine modification",150000,300000,150000,600000]
["Subtotal, machine upgrades",150000,300000,150000,600000]
[]
["Labelers and readers"]
["Labeler",100000,200000,50000,350000]
["Reader",5000,10000,5000,20000]
["Software license",85000,0,0,85000]
["Subtotal, labelers and readers",190000,210000,55000,455000]
[]
["Total",340000,510000,205000,1055000]
[]
["Depreciation and amortization schedule","Year 1","Year 2","Year 3","Total"]
["3 Year straight-line depreciation and amortization",0.33,0.33,0.33]
[]
["Machine upgrades"]
["Year 1 capital, machine upgrades",49500,49500,49500,148500]
["Year 2 capital, machine upgrades",null,99000,99000,198000]
["Year 3 capital, machine upgrades",null,null,49500,49500]
["Sub-total depreciation and amortization, machine upgrades",49500,148500,198000,396000]
[]
["Labelers and readers"]
["Year 1 capital, labelers and readers",62700,62700,62700,188100]
["Year 2 capital, labelers and readers",null,69300,69300,138600]
["Year 3 capital, labelers and readers",null,null,18150,18150]
["Sub-total depreciation and amortization, labelers and readers",62700,132000,150150,344850]
[]
["Depreciation and amortization (total)",112200,280500,348150,740850]
["Note: Depreciation costs for Year 2 and 3 extend beyond the time-frame of this model."]
[]
["Costs","Year 1","Year 2","Year 3","Total"]
["Tags",304184.25,2027895,5069737.5,7401816.75]
[]
["Machine upgrades",109972.01159999998,614358.4597333333,401813.0761333333,1126143.5474666667]
["Depreciation and amortization, machine upgrades",49500,148500,198000,396000]
["Scheduled down-time",56674.799999999996,436605.8666666667,191015.06666666668,684295.7333333334]
["Machine commissioning",3797.2115999999996,29252.593066666668,12798.009466666666,45847.81413333333]
[]
["Labelers and readers",62700,150700,168850,382250]
["Depreciation and amortization, lablers and readers",62700,132000,150150,344850]
["Software maintenance",0,18700,18700,37400]
[]
["Productivity",177470.89597250003,1106808.6900458038,2147238.2667102423,3431517.852728546]
["Setup",5785.5525,143873.52777777778,311853.5243055556,461512.60458333336]
["Operational down-time",63759.149999999994,554940.75,769832.7000000001,1388532.6]
["Line speed reduction",58529.44347250002,269683.51226802607,867965.0424046868,1196177.998145213]
["Headcount",49396.75,138310.90000000002,197587,385294.65]
[]
["Returns and waste",63483.715975499996,357302.33088125,356725.87000625,777511.916863]
["Customer returns",15661.2302955,102250.01471624999,170416.69119374998,288327.9362055]
["Dunnage",0,0,0,0]
["Set-up waste",540.603,4706.03,11765.074999999999,17011.708]
["Run waste",1654.24518,47556.786165,73149.35381249999,122360.38515749999]
["Tag waste",45627.6375,202789.5,101394.75,349811.8875]
["Total",717810.8735479999,4257064.480660387,8144364.712849826,13119240.067058213]

{"sheet":"Financial metrics","index":10,"n_rows":66,"n_cols":4,"rows_kept":66,"cut":false,"hidden":false,"merged":[[10,0,10,3],[7,0,7,1],[8,0,8,1],[15,0,15,3]],"flags":["formulas_cached_only"]}
[]
["Model: RFID Cost/Benefit For US Corrugated Box Manufacturer"]
[]
["Financial Metrics"]
[]
["INPUT"]
["To see the data in a row, click on the \"+\" sign to the left of the row."]
["Cells colored blue are modifiable variable"]
["Cells color pink are modifiable variables that bear a disproportionate impact on costs. Please pay special care when modifying these assumptions."]
[]
["Note: The following is a summary of RFID's impact on important financial metrics. Values have been pulled from previous calculators and are noted directly below each calculation."]
[]
["Costs","Year 1","Year 2","Year 3"]
["Total",717810.8735479999,4257064.480660387,8144364.712849826]
[]
["Note: This summary calculates either cost per msf or cost per ton, depending on the option that you picked to measure output in the sheet \"Overview XYZ\""]
[]
["Cost per msf","Year 1","Year 2","Year 3"]
["Number of boxes requiring RFID tags",1013947.5,10139475,25348687.5]
["Average square foot per box",10,10,10]
["Total square feet for RFID boxes",10139475,101394750,253486875]
["Total msf for RFID boxes ",10139.475,101394.75,253486.875]
[]
["Note: Number of boxes requiring RFID tags is computed on the sheet: Tag calculator"]
["Note: Average square foot per box is an input from the sheet: Overview XYZ"]
[]
["Total msf for RFID boxes",10139.475,101394.75,253486.875]
["Total annual costs",717810.8735479999,4257064.480660387,8144364.712849826]
["Cost per msf",70.79369233101318,41.98505820725814,32.12933495215413]
[]
[]
["Cost per ton","Year 1","Year 2","Year 3"]
["Number of boxes requiring RFID tags",1013947.5,10139475,25348687.5]
["Average box size (shipping carton) in pounds",0,0,0]
["Total pounds for RFID boxes",0,0,0]
["Total tons for RFID boxes",0,0,0]
[]
["Note: Number of boxes requiring RFID tags is computed on the sheet: Tag calculator"]
["Note: Average box size (in pounds) is an input from the sheet: Overview XYZ"]
[]
["Total tons for RFID boxes",0,0,0]
["Total annual costs",10139.475,101394.75,253486.875]
["Cost per ton",{"$error":"#DIV/0!"},{"$error":"#DIV/0!"},{"$error":"#DIV/0!"}]
[]
["Cost per piece","Year 1","Year 2","Year 3"]
["Number of boxes requiring RFID tags",1013947.5,10139475,25348687.5]
["Total annual costs",717810.8735479999,4257064.480660387,8144364.712849826]
["Cost per piece",0.7079369233101318,0.4198505820725814,0.3212933495215413]
[]
["Note: Number of boxes requiring RFID tags is computed on the sheet: Tag calculator"]
[]
["Cost per truckload","Year 1","Year 2","Year 3"]
["Number of boxes requiring RFID tags",1013947.5,10139475,25348687.5]
["Average number of boxes per truckload"]
["Total truckloads for RFID boxes",{"$error":"#DIV/0!"},{"$error":"#DIV/0!"},{"$error":"#DIV/0!"}]
[]
["Total truckloads for RFID boxes",{"$error":"#DIV/0!"},{"$error":"#DIV/0!"},{"$error":"#DIV/0!"}]
["Total annual costs",717810.8735479999,4257064.480660387,8144364.712849826]
["Cost per truckload",{"$error":"#DIV/0!"},{"$error":"#DIV/0!"},{"$error":"#DIV/0!"}]
[]
["Cost per order","Year 1","Year 2","Year 3"]
["Number of orders with RFID requirements",70,700,1750]
["Total annual costs",717810.8735479999,4257064.480660387,8144364.712849826]
["Cost per order",10254.441050685713,6081.520686657696,4653.922693057043]
[]
["Note: Number of orders with RFID requirements is computed on the sheet: Tag calculator"]

{"sheet":"Industry data","index":11,"n_rows":54,"n_cols":6,"rows_kept":54,"cut":false,"hidden":false,"merged":[[6,0,6,4],[36,0,36,5],[53,0,53,5]],"flags":["formulas_cached_only"]}
[]
["Model: RFID Cost/Benefit For US Corrugated Box Manufacturer"]
[]
["Industry data"]
["To see the data in a row, click on the \"+\" sign to the left of the row.",null,"Top 15 average data is poorer than the industry average"]
[]
["2003 TAPPI/FBA Corrugated Productivity Waste Survey Report"]
[]
["This data is used to populate key assumptions in the sheet: Overview XYZ."]
[null,"1000 square feet per Total Machine Hour","Square feet per piece","Pieces per Total Machine hour","Pieces per Run Mach Hour","Pieces per Setup"]
["Flexo-folder gluer #1 (< or = 28 x 72\")"]
["Top 15% average",39.6,6.4,6337,8750,10555]
["Overall average",22.1,4.8,4554,6641,8850]
[]
["Flexo-folder gluer #2 (>40 x 100\", and < or = 50 x 135\")"]
["Top 15% average",64.4,14.7,4504,6818,8126]
["Overall average",35.3,12.3,2886,4385,6622]
[]
["Flexo-folder gluer #3 (>50 x 135\", and < or = 75 x 170\")"]
["Top 15% average",45.5,23,2365,3242,4659]
["Overall average",28,22.1,1658,2520,3922]
[]
[null,"1000 square feet per Total Machine Hour","Square feet per piece","Pieces per Total Machine hour","Pieces per Run Mach Hour","Pieces per Slitter Turn"]
["Specialty Folder Gluer"]
["Overall average",13.5,11,2090,2834,1530]
[]
["This data is not used in the model, but values can be used when customizing the model for specific scenarios"]
[null,"1000 Sq ft per Total Machine Hour","Sq ft per piece","Pieces per Total Machine hr","Pieces per Run Mach Hr","Pieces per Setup"]
["Flexo-folder gluer (>28 x 72\", and < or = 40 x 100\")"]
["Top 15% average",44.5,8.3,5487,7855,13006]
["Overall average",27.1,7.4,3731,5477,9422]
["Flexo-folder gluer (>75 x 170\")"]
["Top 15% average",55.8,59.9,957,1753,2199]
["Overall average",34.1,46.4,799,1331,1939]
[]
[]
["2002 Fibre Box Association Key Performance Indicator Survey Of Corrugated Plants"]
["Net sales ($/msf)"]
["Highest 10%",60.55]
["Average across all corrugated box manufacturers",49.32]
[]
["Shipments (msf)"]
["Highest 10%",675965]
["Average across all corrugated box manufacturers",782926]
[]
["Shipments (tons)"]
["Highest 10%",44572]
["Average across all corrugated box manufacturers",52365]
[]
["Net sales (total $)"]
["Highest 10%",40929680.75]
["Average across all corrugated box manufacturers",38613910.32]
[]
["Note: Net sales (total $) is calculated by multiplying net sales ($/msf) and shipments (msf)"]