Are you paying too much for a

sealed package?How to calculate the value-in-use of a packaging film,

from a packager’s perspective.

A TUTORIAL GUIDE TO THE DUPONT PACKAGING SEALANT VALUE ESTIMATOR (SaVE)

DUPONT PACKAGING

How to Use the DuPont Packaging Sealant Value Estimator (SaVE)

Packaging films made with a high-performance sealant resin such as DuPont™ Surlyn® often can be used at faster line speeds, with fewer rewraps or losses due to package failures (“leakers”) in transit and at retail. The DuPont Packaging Sealant Value Estimator (SaVE) helps you analyze the total packaging-related costs related to the sealant chosen by you or your packaging film supplier.

The calculator will ask you for the following data:

DATA INPUTS*:

Number of employees — number of employees per packaging line.

Cost per manhour (labor rate) — labor rate (including benefits) for hourly employees running the packaging line.

Fixed overhead and Equipment costs per hour — overhead, depreciation, utilities, etc. for running the packaging line.

Packages produced per week (in thousands) — packages produced per packaging line.

Weeks per year packing product — number of weeks the packaging line runs packing the product.

Product costs per package — cost of the product per given number of packages. (May also include such additional costs as labels, on-package POP advertising, coupons, etc.)

Packaging line speed — number of packages produced per minute. (Using a higher-performing sealant often enables faster line speeds.)

Roll stock price — price of the packaging film/laminate, for the chosen unit of area. (Using a higher-performing sealant sometimes lets you use a thinner film, helping reduce package weight and offset sealant costs.)

Surface area of roll stock used per package — footprint of package. (In-clude all surfaces; be sure to include trim, skeleton & cut-off scrap.)

Percent off-machine re-wraps — percent of packages that are rejected as “leakers” or rejects before the product ships from the packing plant, where the product is recovered and re-packaged.

Percent off-machine losses — percent of packages that are rejected as “leakers” or rejects before the product ships from the packing plant, where both the product and its roll stock are discarded. A high perfor-mance sealant such as Surlyn® has been shown to reduce leakers off the machine and during a hold period.

Percent in-store losses — percent of packages that are rejected in transit, or at the retail store shelf, where the product and package are discard-ed. (Some retailers expect to be compensated for packaging failures, via a “leaker allowance.” A high-performance sealant such as Surlyn® has been shown to reduce leakers in transit and at retail.)

*Note: Your input data remains private and is not collected or retained by the calcula-tor; and you need not identify yourself or your employer in order to use the calculator.

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ASSUMPTIONS:

• The packing line is sold out; increased efficiencies (higher line speed and fewer rejects) result in either more product being sold, or other products packed on the line so that overhead and equipment costs are constant.

• Increased line speeds can be achieved; the packaging line is not bottlenecked by factors other than sealing speed.

• Labor for re-wraps is accounted for in the number of employees per line.

A STEP-BY-STEP USER GUIDE:

Step 1 — Collect data inputs (see left).

Step 2 — Choose default units, or “Modify Units”.

Step 3 — Input data into the tool, and then click on “Calculate”

Step 4 — See the calculated results.

Note that a PDF report is gener-ated, showing your results, along with your input data for easy reference.

Step 5 — Explore break-even points for key variables.

Step 6 — To start over, or to change units of measure, click on “Edit Parameters.”

A TUTORIAL GUIDE TO THE DUPONT PACKAGING SEALANT VALUE ESTIMATOR (SaVE)

Math Formulas and Business Assumptions

FORMULAS:*

Package material cost = Roll stock price x Surface area of roll stock used per package

Labor and Overhead cost = (No. of employees x Cost per manhour + Fixed overhead and Equipment costs per hour) / (60 x Pkg line speed per minute) x 1000

Waste cost due to off-machine pkg failures = (Percent off-machine re-wraps + Percent off-machine losses)/100 x (Package material cost + Labor and Overhead cost)” + (Percent off-machine losses/100) x Product costs per package x 1000

Waste cost due to in-store pkg failures = (Percent in-store losses / 100) x (Package material cost + Labor and Overhead cost + Product cost per package x 1000)

Total packaging costs with store rejects = Package material cost + Labor and Overhead cost + Waste cost due to off-machine failures + Waste cost due to in-store failures

Savings per 1000 packages using Surlyn® = Total packaging costs with store rejects with Other – Total packaging costs with store rejects with Surlyn®

Savings per week using Surlyn® = Savings per 1000 packages using Surlyn® x Packages produced per week

Savings per year using Surlyn® = Savings per week using Surlyn® x Weeks per year packing product

Savings per machine hour using Surlyn® = Savings per 1000 packages using Surlyn® / 1000 x Packaging line speed (Surlyn®) x 60

HOW TO CHANGE MEASUREMENT UNITS:

• The calculator is set by default to use “U.S. dollars” as the currency, “1000 square inches” as the area measurement, and “Surlyn®” as the sealant being compared to an incumbent called “Other”.

• The default calculator units can be changed to ANY currency, and to “square meters” for area measurement. The named sealant can be chosen from a pull-down menu that includes five choices:

Surlyn® ionomer resin — Quality sealing every time; the best choice for difficult sealing such as through grease or powder contamination; excellent hot-tack, toughness and clarity.

Nucrel® acid copolymer resin — Lower seal initiation temperature than polyethylene (PE); bonds directly to aluminum foil.

Appeel® lidding resin — Specially formulated for easy-open lidding films; bonds to a wide variety of substrates.

Elvax® EVA resin — Softer and clearer than PE; low seal initiation temperature, for fast packaging speeds.

Elvaloy® AC resin — Soft, flexible resin with excellent processing stability; low seal initiation temperature and good ink adhesion.

*Why DuPont Packaging shares the mathProgramming an online calculator takes time and effort, so why share our formulas and make them easy to copy? Simple: To serve customers and foster a better understanding of the total value of a more reliable or faster packaging sealant.

DuPont Packaging enjoys a collaborative role with leading packaging film manufacturers and innovators who can help optimize a film and sealant combination to meet your unique packaging goals.

A TUTORIAL GUIDE TO THE DUPONT PACKAGING SEALANT VALUE ESTIMATOR (SaVE)

To use the calculator online, visit: sealant-cost-calculator.dupont.com

A TUTORIAL GUIDE TO THE DUPONT PACKAGING SEALANT VALUE ESTIMATOR (SaVE)

*Hypothetical data for demonstration only.

-VALUE ANALYSIS EXAMPLE

CEREAL BOX LINER*

To use the calculator online, visit: sealant-cost-calculator.dupont.com

A TUTORIAL GUIDE TO THE DUPONT PACKAGING SEALANT VALUE ESTIMATOR (SaVE)

*Hypothetical data for demonstration only.

-VALUE ANALYSIS EXAMPLE

HOT DOG FILM*

Sealant Value Estimator Break-Even Analyses

The DuPont Packaging Sealant Value Estimator allows for further analysis of operating conditions to learn where packaging cost “break-evens” occur. In the example on the left, reduced in-store losses (in this example, cut from 1% to 0.33% with Surlyn®) are more than enough to offset a higher film price. A break-even analysis shows that this packager would start to save money as soon as in-store losses fall to below 0.66%. You can use the DuPont “SaVE” calculator tool to estimate break-evens for these operating variables:

• Packaging Line Speed

• Off-Machine Rewraps

• Off-Machine Losses

• In-Store Losses

• Roll Stock Price

In each break-even analysis, the other four vari-ables are held constant, allowing for sensitivity analysis on a target variable. Often, small operating changes focused on a key parameter can result in significant savings. For assistance evaluating your packaging cost-effectiveness using the DuPont Packaging Sealant Value Estimator, contact a DuPont Packaging technical sales office or visit us on the web at:

packaging.dupont.com

While DuPont believes that the procedure set forth in this publication can be used to safely and effectively modify asphalt, DuPont does not warrant or guarantee the completeness, efficacy or safety of the process or its use. The information contained herein is intended for use only by competent personnel in designing and operating a facility to modify asphalt, and the user of this information accepts full responsibility for its use. Consistent with the foregoing, anyone using this information shall indemnify and hold DuPont harmless from any loss, claim, damage, or injury to persons or property whatever the cause may be arising out of or pertaining to the use of the information, unless the same is shown by the user to have been caused directly by bad faith or willful misconduct on the part of DuPont. Furthermore this publication is not to be taken as a license to operate under, or a recommendation to infringe, any patents.

The DuPont Oval, DuPont™, The miracles of science™, Surlyn®, Nucrel®, Appeel®, Elvax®, and Elvaloy® are trademarks or registered trademarks of DuPont or its affiliates. Copyright © 2011 E.I. du Pont de Nemours and Company. All rights reserved.

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Americas

DuPont Company, BMP26-2215Lancaster Pike & Route 141Wilmington, DE 19805 U.S.A.Telephone +1 302 996 7911Toll-free 800 438 7225

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A TUTORIAL GUIDE TO THE DUPONT PACKAGING SEALANT VALUE ESTIMATOR (SaVE)

(Hypothetical data for demonstration only.)

DuPont do Brasil, S.A.Alameda Itapecuru, 50606454-080 Barueri, SP BrasilTelephone +55 11 4166 8000Toll-free 0800 17 1715

Asia Pacific

DuPont China Holding Co, Ltd.Bldg. 11, 399 Keyuan RoadZhangjiang Hi-Tech ParkPudong New DistrictShanghai 201203, ChinaTelephone +86 21 3862 2888

Europe / Middle East / Africa

DuPont de Nemours Int’l. S.A.2, Chemin du Pavillon PO Box 50CH-1218 Le Grand SaconnexGeneva, SwitzerlandTelephone +41 22 717 51 11 addresses

DuPont Packaging offices are located worldwide