Who is who in diapers. Insight Conference Paper, October 2009, presented by Carlos Richer

1. Who is who in baby diapers? By Carlos Richer Richer Investment SA de CV Diaper Consulting Services, Diaper Testing Lab, Diaper Factory Audits, Benchmarking, Appraisals, R&D, Expert Witness, New Diaper Factories.

4. I will attempt to provide a step by step guideline.

5. The objective is not to give you an answer but to help you find your own.

6. We may not agree on which is the very best but at least we are going to be very close.Richer Investment Diaper Consulting

8. The point of view of the large trader.

9. The point of view of the manufacturer.Richer Investment Diaper Consulting

10. Richer Investment Diaper Consulting

11. USA 2009 Guatemala 2009

12. Pampers Cruiser USA 2009 Pom Pom Guatemala 2009

14. Brazil Summer 2009

15. Argentina Summer 2009

16. African Diapers Summer 2009

18. Tier 1 Economy

19. Tier 2 Value.

20. Tier 3 Premium.

21. Tier 4 Supreme.Richer Investment Diaper Consulting

23. To select brands according to specific Tiers, always use the point of view of the consumer.

24. Compare prices from the same kind of store.

25. Select the brands according to your perspective.

26. Consumers: based on avaiability

27. Traders: based on competitive price and importation.

29. Mexican diapers Tier 3, July2009 Kiddies 2009 BB Tips 2009 Suavelastic Max 2009 Total Dry 2009 Richer Investment Diaper Consulting

31. You need to make sure the samples represent the market.

32. How can you make sure? Why is this important?

33. National brands .vs. Small manufacturers.

34. Good enough: Buy 5 bags (from 5 differnt stores).

38. The idea is to perform a visual audit on all samples.

39. My proposal is to classify the diapers in 4 groups:

40. No defects. The samples look perfect to the naked eye.

41. Minor Defects. Only a manufacturer can detect.

42. Major Defects. The consumer will detect it.

43. Critical Defects. Impossible or too risky to use the diaper.Richer Investment Diaper Consulting

45. Suggested formula:

46. 1 Critial Defect = 10 Major Defects

47. 1 Major Defect = 10 Minor Defects.

48. 1 Minor Defect = 1 point in the scale of 100.

49. Craftsmanship= 100 - Minor Defects – Major Defects * 10

50. If a Critical Defect is found then the result is Zero.Richer Investment Diaper Consulting

52. You inspect another brand with 25 diapers and you find 15 Minor Defects, 1 Major Defect, and 9 diapers with No Defects. The result is (100- 15 – 10)= 75

53. After inspecting another brand you find 1 critical defect and 10 minor defects. The result is Zero.Richer Investment Diaper Consulting

55. Backsheet folded edges (less than 20 mm in total).

56. ADL is out of position but still inside absorbent pad.

57. 3D pad knife cut is out of registration.

58. Leg cuff height (less than 15 mm).

59. C Folding or Bi fold out of position (less than 30 mm)

60. Top sheet does not match backsheet with an excess of more than 15 mm.Richer Investment Diaper Consulting

61. Guatemala 2009

62. KC, Brazil

66. Morocco Aug, 2009 Richer Investment Diaper Consulting

67. Pad Knife Registration Mexico, June 2009 ADL Patch Richer Investment Diaper Consulting

68. Venezuela May 2009 Richer Investment Diaper Consulting

69. KC, Huggies Pure and Natural USA Sep 2009 Richer Investment Diaper Consulting

71. Leg cuffs stay down and wont open.

72. A missing leg cuff on either side.

73. An exposed drop of glue (but less than 5 mm)

74. A small window without fluff within the pad.

75. Leg gathers or leg cuffs without elastics.Richer Investment Diaper Consulting

80. A piece of leg trimming still attached.

81. One tape or both are missing.

82. No frontal tape.

83. Exposed pulp due to nonwoven rupture.

84. Open ends exposing the pulp.

85. Presence of fungus or spores or any other kind of biological contaminants.Richer Investment Diaper Consulting

89. This is typically due to lack of process control originated by the equipment or by the people.

90. Most times it can be explained by a variation on the amount of fluff (dirty drum pockets, etc).

91. Other times is due to variation of SAP between diaper to diaper (volumetric .vs. gravimetric).

94. 1 gram of fluff holds less than 1/15 of the retentive capacity of the typical SAPs.

97. Has to work in harmony with the overall design.

98. It is conformed by:

99. The absorbent pad (a mix of SAP and Celulose).

100. A pad wrapping material (tissue or light weight Spunbond).

101. Hot melt adhesive (for integrity)

102. Curly Fiber (P&G, Ontex, etc.)

103. ADL patch (high loft nonwovens used for liquid acquisition)Richer Investment Diaper Consulting

107. Discrete pad formation (No carrier?)

108. Tissue or Spunbond ?

109. In USA almost everyone use Nonwoven

110. In Colombia nonwoven is also preferred; in Mexico is split (by KC and P&G); in Ecuador, Venezuela, in Mercosur, Africa and India tissue is preferred.

111. Top/ Bottom/ Fully Wrapped?Richer Investment Diaper Consulting

113. Total free swell capacity (using saline solution at 0.9% and 23 C).

114. Centrifugal or retentive capacity (or absorbency under load).

115. Strike trough times (also called liquid penetration times).

116. Wicking speed at 90 and/or 45 degrees.

117. Pad Symmetry and 3D core indexes.

121. South Africa July 2009

125. To know these parameters you need to test:

126. Max and Min waist circonference.

127. Tape Peel force (using its full width).

128. Tape shear force (using its full width).

129. Relative dimensions between lateral and frontal tape.

131. Huggies Hook and Loop at 125 X Hook and Loop at 500 X

132. Hooks used on Huggies Loop at embossing

133. Freskolin Locked Loop Hooks with less density of hooks used on Freskolin Brand

134. Hook & Loop used on Jueguitos and Chiquitines Sold in Guatemala in 2009

136. Required Peel Forces Try not to exceed 2 Newtons Richer Investment Diaper Consulting

140. To know this you need to test:

141. The performance of the leg cuffs.

142. Elastic stretch and resistance to the oven test.

143. The size of the open channels.

145. Open Channels at leg cuff ends

149. Becuase it has little or nothing to do with performance but a lot to do with consumer preference.

150. Some things to look for:

151. Use of cloth like backsheet or plain film.

152. Use of registered or random printed tapes and frontal.

153. Use of easy recognizable cartoon characters, such as Disney, Sesame St, versus the Peabody Ducks or any other Ugly Duckling Design.

154. Use of special skin topical lotions or perfumes.

155. Ecological claims.

158. How do you estimate diaper manufacturing cost?

159. Find out the exact usage of each diaper element (reverse engineering).

160. Multiply each element by its individual raw material cost.

161. SAP and pulp in the mix can be easily calculated in a very exact way using the total pad weight, the free swell and centrifugal retention, and the performance of a sample of SAP extracted from the diaper.SAP Fluff X (a) + Y(b) = 450 a=14.5 c=1.7 X (c) + Y(d) = 375 b=31.5 d=23.5 X=19.7 Y=8.36 SAP

165. Sample B= 0.083 USD

166. Sample C= 0.084 USD

167. Sample D= 0.089 USD

168. A new machine upgrade does not look so expensive anymore.Not the same if you are B and better than the rest, or D and the worst in your tier. Richer Investment Diaper Consulting

170. How to add them all together to find the best?

171. Craftsmanship; Absorbet system together with Containment; Luxury items; Fastening system.

172. Use of mannequin tests.

174. You need to know your weaknesses, strengths, risks and oportunities before you can suggest product design improvements that make sense.

175. Dont be affraid to invest in machine upgrades when needed; it may be too late once you are forced to do it.

176. If you have a lower performing product with a higher unit cost, look for an urgent solution. If you cant find it ask for help.

177. If you are beyond help, I can help you sell your old equipment.Richer Investment Diaper Consulting

178. Join the Disposable Diaper Network Group at Linkedin using this link: www.linkedin.com/e/gis/136568 Thank You Questions? What do we do? Factory Audits Feasibility Studies Benchmark Reports Technical Support Machine Appraisals Insurance Claims Expert Witness By Carlos Richer Richer Investment SA de CV Diaper Consulting Services www.disposablediaper.net cricher@richernet.com