Case Study III
Nanjing Tengya is a group company, paper-strip nails is one project of their company. At present, it produces and sells about 1,500 tons of paper-strip nails per month. It is the top three large-scale paper-strip nail factories in China. The group is a national high-tech enterprise, the key high-tech enterprises in the Torch Program, and the top 100 private enterprises in Jiangsu Province.
1. In March and May 2017, Tengya applied 1, and 8 high-speed nailing machines (RMB288,000.00/set and RMB238,000.00/set) of dummy N90 from two Chinese suppliers. Respectively, the machines are too cumbersome to use and adjust. In addition, the mold cost is higher than traditional nail making machine. At the beginning of July 2017, the company knew that our company also have high-speed paper-strip nail making machines, they purchased a high-speed nail making machine D90 (a model specially designed for half-head paper-strip nails).
2. Since our high-speed nail making machine is very simple to debug and operate, after 3 months’ use, the factory ordered 3 units again in December 2017, because one of the counterparts imitated the German N90 (purchased 8 units) high-speed nail making machine often has some minor problems during use, and the damage of the wearing parts is very frequent. They return 3 of the 8 units to the supplier.
3. Since our equipment has been used for 3 months, it is still very stable and reliable. Their factory placed 7 units at one time on March 5, 2018, and then prepared to completely return last 5 units dummy machines that have already been paid back to the supplier. It has been negotiating now.
4. Due to the high stability of our equipment, a worker can monitor 10-15 machines at the same time. Considering the high efficiency and high quality of our high-speed nail making machine, they calculate the cost of each ton of nails. It’s very impressive:
(1) Save 65% per ton of nail labor costs and conservatively estimate RMB50.00 or more
(2) Each ton of nails saves electricity costs 30-60kw of electricity RMB25-40/ ton. For instance: to produce nails of 2.2mm×50mm, using ordinary nail making machine according with power of 2.5kw, it probably needs to consume electricity 96.52kw; but if using our high-speed nail making machine, according to the actual power of 3.8kw, about 53.9kw of electricity is required; the actual saved power consumption is up to 42.62 kw.
(3) The waste nail loss is reduced by about 1.5%, equal to RMB70.00-80.00.
(4) At least RMB10-15/ton for nails cutter and mold.
(5) Because of the nails’ good quality, the efficiency of the nails is increased by 25%-45%, and the labor cost of the nails is reduced by at least RMB40.00/ton.
——conservatively estimated per ton of nails: 50+25+70+10+40=RMB195.00 /ton
(6) If you can use the cleaning wire, you don't need to polish the nails, then save more about RMB30.00/ton
——this can reduce the production cost per ton: 195+30=RMB225.00/ton
5. On February 19, 2019, their factory decided to continue to phase out the traditional equipment in the past, and purchase 15 units of high-speed nail making machines at one time, so that they have 26 high-speed nail making machines. They are ready to be replaced by our high-speed nail making machine in 2019, and they are about to buy another 20 units or so.