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Economic Investment –Total Annual Product Cost --$164 Million Raw Materials --$72 Million Production Rate – 34 Million tubes/ yr (4.47 Million kg/yr) Production.

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Presentation on theme: "Economic Investment –Total Annual Product Cost --$164 Million Raw Materials --$72 Million Production Rate – 34 Million tubes/ yr (4.47 Million kg/yr) Production."— Presentation transcript:

1 Economic Investment –Total Annual Product Cost --$164 Million Raw Materials --$72 Million Production Rate – 34 Million tubes/ yr (4.47 Million kg/yr) Production Cost -- $4.86/ tube Abstract In this work, a novel active ingredient is explored as an additive for a dentifrice,. This ingredient is extracted from the byproduct of wine- making, grape pomace. This polyphenolic extract shows strong inhibitory power toward the virulence factors of oral bacteria, such as the production of polysaccharides and acid. A consumer preference model is used to connect consumer survey data to a product composition for toothpaste, including the polyphenolic extract. This exercise results in a product composition that boasts 98% consumer satisfaction and a selling price that maximizes profit. Whats the Problem? Cavities: Also known as Dental Caries – Most prevalent and costly infectious disease in the U.S. – $78 billion spent on dental services/year in the U.S. Occur when tooth enamel and the underlying tooth decay Cause - mainly Streptococcus mutans Prevention – the inhibition of S. mutans along with regular cleaning of teeth Whats the Solution? Novel Active Ingredient: Grape pomace – waste byproduct of winemaking, mostly skins and seeds Rich in polyphenols, currently under research for various health benefits Polyphenols extracted through solvent-solid leaching, purification, and evaporation Inhibits virulence factors of S. mutans Prevents synthesis of extracellular polysaccharides Lowers activity of glucosyltransferases (GTFs), enzymes which transfer glucose into glucans Lowers bacterias ability to produce and tolerate acids Lowers activity of F-ATPase, which protects S. mutans against environmental acid stress Catechin Consumer Modeling Use consumer survey aims at determining the product formulation with the highest consumer preference Consumer preference is measured by a weighted sum of consumer preferences over different attributes. Product Properties Effectiveness Percent less cavities Sweetness Equivalent weight percent sucrose Cooling Effect Ca 2+ ion current Cooling effect caused by both menthol and cold is mediated by Ca 2+ ion channels Thickness (F/A) α (Viscosity) 1/2 Abrasion Relative Dentin Abrasion (RDA) Foaminess Hypothetical Foam Height Creaminess Consumer OptionEquivalent ProductEquivalent wt % Sucrose 1: Low SweetnessMint10 2: Medium SweetnessGum55 3: High Sweetness Candy 100 Consumer Option Equivalent Product Simulated Cooling Effect (deg C) 1: Little Cooling Winterfresh ® Gum : Medium Cooling Extra ® Polar Ice Gum : Very CoolingAltoids ® Mint QualityEquivalent FoodViscosityThickness Little ThicknessHoney3,000 cp54.8 Moderately ThickTomato Paste150,000 cp387.3 Very thickPeanut Butter250,000 cp500 Consumer OptionEquivalent DentifriceRDA value 1: Little Abrasion Rembradt ® Classic Sensitive (least gritty) 70 2: Medium AbrasionAquafresh ® Extra Fresh100 3: Very AbrasiveCrest ® Pro-Health (gritty feeling)125 AbrasiveRDA multiplier compared to silica Silica531 Dicalcium Phosphate Calcium Carbonate Consumer Option Foam Height (mm) Concentration SLS (M) Weight % SLS Solution 1: Little Foaminess : Medium Foaminess : Very Foamy Consumer OptionEquivalent FoodCreaminess Value 1: Little Creaminess Birdseye Cool Whip ® : Medium Creaminess Ice Cream1.83 3: Very Creamy Cream Cheese2.15 AverageABCD Cavities/year % less cavities How Do We Proceed? American Dental Association Seal of Approval – Important symbol of dental products safety and effectiveness – Submission to the ADA Council on Scientific Affairs is voluntary – Six General Criteria for Acceptance Toothpaste Manufacture The following steps are the mixing procedure according to the Rheology Modifiers Handbook (Braun and Rosen 2000): 1.Slowly add the deionized water and the sorbitol aqueous solution (70%). 2.Mix this solution with the xanthan gum. 3.Add the calcium carbonate and hydrated silica to the solution until it is uniform. 4.Add the flavoring, xylitol to the mixture until it is uniform. 5.Follow by the addition of the active ingredient, polyphenolic extract. 6.Add the sweetener, sodium saccharin (10%) aqueous solution. 7.Add the preservative, sodium benzoate and the pH adjuster, trisodium phosphate. 8. Add the titanium dioxide until it is uniform in the mixture. 9.Then add sodium lauryl sulfate (30%) aqueous solution to the mixture. Avoid incorporating air during mixing. Mix each step uniformly. Total Annual Product Cost Rate Cost per unitCost per Year Raw Materials Active & Inactive Ingredients7.44.E+06kg/ yr $ 9.72USD / kg$72,323,968 Packaging 27% of Tubes/yr$89,433,720 Operating Labor 3 operators at $27/hr$603,126 Operating Supervision15% of Operating Labor$90,469 UtilitiesElectricity, Water, Steam$128,282 Maintenance & Repairs10% Equipment Cost$325,718 Operating Supplies15% Maintenance & Repairs$48,858 Laboratory Charges10% of Operating Labor$60,313 DepreciationStraight Line Depreciation (10 yrs)$1,013,119 Taxes 2% FCI$172,230 Insurance 1% FCI$86,115 Total Annual Product Cost$164,285,918 Total Annual Product Cost per tube $4.86 Total Annual Product Cost per kilogram$22.08 Market Base Toothpaste sales projection $2,460 Million in 2008 (Packaged Facts 2000) American South/Southwest Population92 Million – 13.5% of toothpaste sells are speciality toothpaste (Packaged Facts 2000) – Assumed 60% of population buys toothpaste – 7.45 Million Target Market – Assumed people buy 1 tube toothpaste every 2 months Consumer Utility Maximization We use the following price demand relation p 1 d 1 = (α/β) ρ [(Y-p 1 d 1 )/p 2 ] 1- ρ d 1 ρ Y= $360 million/ yr (Consumer budget) ρ =0.75 Model Parameter) p 2 = $7 (competition Price) α =1 Consumer awareness β =S 2 /S 1 Ratio of preferences between new product and competition NPW is calculated for different Prices and β values with manufacturing costs dependent upon β BrandpriceSatisfaction Clay Bright natural toothpaste % Dr. Collins Restore Remineralizing % Crest Whitening Exp. Anticavity % Elgydium AntiCavity % Kiss My Face Anticavity Toothpaste % AVERAGE % Why Should We Proceed? Economic Investment –Extraction Process --$10.1 Million –Equipment –Piping, Installation –Indirect Costs –Toothpaste Manufacturing – no investment cost –Utilize an existing process line at the existing toothpaste production facility. Total Income$2,705,141,716 Gross Profit$1,062,282,536 Depreciation$1,013,119 Income Taxes$361,176,062 Net Profit$701,106,474 Total Project CF$702,119,593 Income $/yr$270,514,000 Production Rate (tubes/year)4,470,000 Product Cost ($/yr)164,000,000 Demand3,380,000 Toothpaste Selling Price$8.00 CF$106,228,254 NPW$87,821,472 y i – property satisfaction of i w i - property weight of i S - preference Anti-Cavity Toothpaste Design* Bonnie Grider**, Michele Johnson**, and Miguel J. Bagajewicz School of Chemical, Biological, and Materials Engineering University of Oklahoma 100 East Boyd Street Rm. T-335 (*) This work was done as part of the Capstone Chemical Engineering class at the University of Oklahoma (**) Capstone Undergraduate students Conclusions Tooth cavities are caused by S. mutans and are a serious public health issue. Polyphenolic grape pomace extract will inhibit the virulence factors of S. mutans and consequently decrease the risk of tooth cavities when placed in a toothpaste with 98% consumer preference. Only the extraction process requires an investment, which totals $10 million and will yield an estimated return on investment of 700% when product is sold at $8/tube. References 1.U.S. National Library of Medicine. (2007). MedlinePlus Medical Encyclopedia: Dental cavities. 2.Centers for Disease Control and Prevention. (2005). Oral Health: Preventing Cavities, Gum Disease, and Tooth Loss. 3.Satcher, S. G. Oral Health in America: A Report of the Surgeon General; U.S. Department of Health and Human Services: Washington, D. C., "Toothpaste." How Products are Made. Ed. Stacey L. Blachford. Gale Group, Inc., eNotes.com Mar, Lewis, C. (1998). Clearing Up Cosmetic Confusion. U.S. Food and Drug Administration Consumer Magazine. 6.U.S. Food and Drug Adminsitration Center for Food Safety and Applied Nutrition. (2002). 7.Mason, Stephan. Dental Hygiene, Pouchers Perfumes, Cosmetics and Soaps, 10 th E (2000) 8.Kokini, JL, and E L Cussler, Predicting the Texture of Liquid and Melting Semi-Solid Foods. Journal of Food Science, 48 (1983), Poletto, M and JJ Joseph, Effective density and viscosity of a suspension, J. Rheol. 39(2), March/April Davis, WB. Cleaning and polishing of teeth by brushing. Community Dent, Oral Epidemiol, 1980: 8: Koo H, Pearson SK, Scott-Anne K, Abranches J, Cury JA, Rosalen PL, Park YK, Marquis RE, Bowen WH. Effects of apigenin and tt-farnesol on glucosyltransferase activity, biofilm viability, and caries development in rats. Oral Microbiol Immunol 2002: 17: Torres, J L, B Varela, MT Garcia, J Carilla, C Matito, J J Centelles, M Cascante, X Sort, R Bobet. Valorization of Grape (Vitis vinifera) Byproducts. Antioxidant and Biological Properties of Polyphenolic Fractions Differeing in Procyanidin Composition and Flavonol Content. J. Agric. Food Chem. 2002, 50, Makris, DP, G Boskou, N K Andrikopoulos. Recovery of antioxidant phenolics from white vinification solid by-products employing water/ethanol mixtures. Bioresource Technology 98 (2007) Thimothe, Joanne; Bonsi, Illeme; Padilla-Zakour, Olga; Koo, Hyun. Chemical Characterization of Red Wine Grape (Vitis vinifera and Vitis Interspecific Hybrids) and Pomace Phenolic Extracts and Their Biological Activity against S. mutans. J. Agr. Food Chem. 2007, 55, Bagajewicz, M.J. On the Role of Microeconomics, Planning, and Finances in Product Design. AIChE Journal, 2007, 53,12, pg Name 2.Composition, nature, and function 3.Evidence of safety and efficacy 4.Conform to governmental regulations 5.Use of biodegradable and recyclable materials 6.Labelling, package inserts, and advertising


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