Doing the Math on Your Moldmaker's Value
A moldmaker likes a challenge,
and that is what was received when A-1 Tool Company (Melrose Park, IL)
was approached by a West Coast container manufact-urer. The molder had
been manufacturing a product for some time and had many molds used for its
production, but now there was a desire to alter the molds in order to
reduce the part weight due to the rising cost of the plastic material.
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Mike Schillaci, Vice
President of Sales for A-1 Tool. Photo courtesy of A-1
Tool.
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Mike Schillaci, Vice President of sales, related that this customer
had previously tried to reduce the wall stock using the current mold
design and gating by just reducing the wall thickness of the part. The
customer invested time and money on the effort only to see it fail due to
flow length. That’s when the customer turned to A-1 Tool.
Mike
Schillaci, Vice President of Sales for Having already worked with similar
projects, the A-1 team knew that although its customer’s original request
for help working with existing tooling was not an impossible one,
another approach was viable and so they presented a new solution.
“With this project, we began by looking at aspects including those our
customer may not have considered,” explains Schillaci. “With every
project, we try to meet with customers early on so that we can influence
the part design. Our sales personnel have the experience and skills needed
to warn of such things as bad steel condition, drafts needed for textures
and changes that could make secondary labor less intense and costly.”
Schillaci and A-1 Tool’s President Geoff Luther met with the customer
and reviewed the problem, and then proposed building a new tool—though
that was not the original customer request. Questions that were asked:
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“What is the
estimated production quantity?”
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“How long do
you have to fill the pipeline?”
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“What molding
equipment will be used or what is available?”
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“Is automation
required or an option?”
“We quoted options on design elements that could influence
any tests or shipping requirements they may run into,”
Schillaci says.
For example, the thinner wall could
fail a drop test, so design options were quoted, such as
structural ribbing or reshaping the bottom of the
container—changes that could be made with minimal influence
on the tool and the customer’s budget.
Material Cost Savings to the Penny The savings
from cycle time reduction and reduced rejects can only be
generally estimated, but Schillaci detailed the material
cost savings to the penny.
“The original can weight
was 5.2 lbs, and the new mold with reduced part weight is
now 3.6 lbs. or a weight reduction of 1.6 lbs.,” he
explains. “If material costs $ 0.65 per lb. times 1.6 lbs.
then that equals a savings of $1.04 per can. If the mold
runs at 144 shots per hour times $1.04 per can, you are
looking at $149.76 savings per running hour. Further, at
23.5 hours per day times $149.76 per hour, the savings comes
to $3,519.36 per day that the mold is in production. If the
mold is run 19 days (leaving out weekends and holidays) per
month times 12 months per year, then it’s running 228 days
per year. Using 228 days times $3,519.36 per day you gain
$802,414.08 in total dollar savings per year. All of this is
based on the price of plastic and how many days a year the
mold is run.”
“Upon initial sampling, if the product
doesn’t pass every test, the options we quoted are already
budgeted for and therefore can be implemented quickly,” he
explains.
Because the original tool could not be
effectively altered and saved for production, A-1 Tool’s
new approach, given the savings gained over the life of the
mold, made the investment in a new tool a savvy financial
decision for the customer.
Calculating the
Savings A-1 Tool was able to do the math for its
customer (see Above) on this project to prove out the
savings gained by implementing a new mold build and these
were the results:
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Faster cycle
times. This project yielded an impressive 15 percent
gain in speed of production.
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Fewer
rejects—Structural tests were considered at the design
stage
and the product met customer requirements,
including visual testing (texture or draft issues,
etc.) ensuring an aesthetically pleasing, quality molded
product.
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Significant
material savings over the original mold design: $800,000
per year. The original molds have been running for
about 10 years and it is expected the new molds will
run for at least that long.
“We offered
contingencies and provided tangible data that could be taken back to
management to justify the idea of not only building a new mold, but for
building a better one,” states Luther.
There is nothing more costly
than a tool that doesn’t perform to its maximum potential. Producing the
lowest cost part is the whole reason a tool is built. Challenging
traditional approaches of the past is an opportunity for profitability on
the part of both the moldmaker and the customer.
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