Silveys' Plastic Consulting
May/2009
Vol 3 No 5 
Greetings!
 

Hallo!

 

How time flies, here it is mid May and it seems I am late in getting out news to all. All the plants in front of the house have started to bloom and some are even done given the various highs and lows in temperatures lately.

 

This month we talk about cavitation and some costing issues, and I apologize for being long winded. It is just that too many times I hear about cost being too high and yet no one has yet been able to answer my question "how much does it cost to produce?" I hear about material prices, tool cost, labor but having many accounting types in the family I go back to a sister whom at one point in her life could tell you the cost to produce a chicken for market, not that many care but parts are what we produce and time is what we sell.

 

Speaking of time, Chinaplas, ANTEC, and NPE are upon us and hopefully some can attend and learn or educate one's self. Myself I am passing this year as an opportunity presented itself and I decided to take it. So if you go let me now what you see and find exciting.  Education is the key to all, hopefully if you have had extra time you have taken advantage to get caught up or maybe brush up on the stuff you have forgotten.

 

Enjoy the article; let us know what you think,

 

TA-

 

Steven

 

silveysplastics@aol.com

1-360-882-3183


Tooling Cavitation
some costing considerations
by Steven L Silvey

Cavitation

Definition: 1: a depression or sometimes the set of matching or associated depressions in a mold that forms the outer surfaces of molded articles. 2: plural multiple cavities; one equals single cavity, two would be two cavity...etc.

 

One of the main issues with injection molding is the cost of the mold. As the old commercial goes you get what you pay for, plain and simple. But the issue to be explored is what our cost per unit is as it relates back to the mold itself.

 

One of the first factors to be considered is what will be the total production required from this tool? This would possibly than equate to a standard for tool build, but not always. If only 1 million parts were required a single cavity would need to support over a million shots while a 4 cavity would only need to support slightly over two hundred and fifty thousand shots. In both cases the million parts could be produced.  

 

In addition to how many parts are needed total out of the tool. What are the estimates for parts per year, per month and or per week? This helps in selecting cavitation, as with cycle time estimates calculation are made resulting in data that shows to produce the product requirements a high cavitation mold is necessary, or multiple tools are necessary. The worst possible issue is that when demand increases you are not able to maintain or supply to all parties. Another issue is in filling the pipeline with product for launch, that additional tools be considered to meet demand.

 

So if a mold is built at a cost of $30,000 with only one cavity, the equation is divide the $30,000 (cost of mold) by how many parts are to be produced and that is the cost per part for the mold. If only 30,000 parts were produced out of the mold than $1.00 per unit is the cost of the mold. If we double production than it is $0.50 per part cost for the mold.

 

As production numbers go up the price per part related back to tooling is lower and lower. Thus when looking at cavitation the tooling cost increases as cavitation goes up, the factor may be 1.5 (when doubling cavitation) for example so a 2 cavity costs $45,000 and a 4 cavity $67,500 and so on. (only used for explanation)

 

 

Cavitation

Tool Cost

30,000 units

60,000 units

1 million

 

 

Cost /unit

Cost / unit

Cost / Unit

1

$30,000

$1.00

$0.50

$0.03

2

$45,000

$1.50

$0.75

$0.045

4

$67,500

$2.25

$1.125

$0.0675

 

 

The above chart shows the declining cost per unit, and should be one of many processes to run through. As can be seen the increases in tooling become less pronounced per part as numbers increase.  This should not be a deterrent to building high cavitation tools because in most accounts production per hour is increased enough (decrease in machine hours) to offset this higher cost and still achieve a lower cost per unit. (a subject for another discussion)

 

The point to be made is that tooling / cavitation costs are important but are often misunderstood. They should be related back to cost per unit for the tool cost. It is a capital expense and one that has always been debated or as my experience has been "can't you build it cheaper." There needs to be a balance between cavitation, parts needed and time allowed to produce those parts.

 

This than brings up the hidden cost in the tool cavitation numbers and that is maintenance. What is the cost to maintain the tool? How is it amortized over the part cost and or cost to build the tool? This can only be done after the fact, but for the above example let's state that for every 10,000 shots a PM must be done at a cost of $1000. (for the single cavity)

 

If production is 30,000 units that equates to $3000 added to our tool, or an additional $0.10 per unit cost. If in fact we double our production to 60,000 units we than add in $6,000 for PM cost and we still have the $0.10 per unit as it is a fixed cost, so instead of $0.50 per unit cost for tooling we have $0.60 per unit, $0.10 for maintenance and $0.50 variable due to product produced. As cavitation increases and we were to use the same factor on maintenance as a tool build of 1.5 each time the cavitation doubled the cost would be

 

Cavitation

PM Cost per 10,000/shots

PM Cost per unit

1

$1000

$0.10

2

$1500

$0.075

4

$2250

$0.05625

 

Basically as our cavities increase, though the maintenance cost increase, the volume of parts produced per shot ultimately causes a decrease per unit charged backed to the cost of our tool. Combing both the PM cost and cost to build per part at a million part level equals a $0.13 per part for a single cavity, $012 per part for a 2 cavity and $0.124 per part for a 4 cavity.

 

Note that in most areas this cost may not even be considered, or might have a separate line item. Further maintenance may be at higher shot numbers which than lower the costs, but it is a factor in considering cavitation models.

 

Now here is the kicker, if the molder builds the mold and runs the production for the product in most cases they pick up the cost of maintenance as it was built into the tool build and or part costing. If the tool was built by party one and shipped to party two to run for the OEM, the maintenance is now most likely the responsibility of the OEM.

 

The bottom line is how many cavities do we need to create within the mold to produce the parts necessary in an economical way? Another side is if we build an inferior tool and have higher maintenance costs is it acceptable to our overall product cost or more importantly who is picking up the cost and whose bottom line is it effecting?

 

 

SL SILVEY
360-882-3183
 

Services provided
Some of what we do!!!

The following are some of the services that can be provided.

 

1-      Troubleshooting:  assisting in the processing

a.      At your plant,

b.      Over the phone, internet, Skype, MS Messenger

2-      Plant Audits,

 

3-      Training / education programs.

 

4-      Mold optimizations / new mold trials

5-      Other services

a.       program management

b.      material development  ( oversee with external assistance)

c.       testing of materials   (oversee with external sources)

d.      BTI MeltFlipperŽ   ( distributor for)

e.       Expert witness

 

MeltFlipperŽ, is the registered trade mark of the Beaumont Technologies, Inc

 

Missed an issue check out the archives:

 

http://archive.constantcontact.com/fs034/1101663388820/archive/1102138661635.html 


 
360-882-3183
Distributor for

 
 melt flipper logounbalanced balanced
 
 

Beaumont Technologies, Inc.
1524 East 10th  Street

Erie, PA 16511

Telephone  814-899-6390

Fax   814-899-7117                                 

www.beaumontinc.com

 
 

When size, stress and repeatability definitely have to be identical from 1 cavity to 96 cavities in the parts, give me call, or give BTI a call direct and tell them Steve sent ya.


Here is an comparison, if you golf and hook or slice think about if you bent your clubs or rotated the swing in a certain way, that each swing produced a shot that went exactly where you wanted.  The flipper does that each shot, and their new products allow you to place it into a hook or slice if need be, check them out.
Steven Silvey
Silveys' Plastic Consulting
PO BOX 5216, Vancouver, WA 98668 USA
360-882-3183, cell 360-606-1156, fax 360-882-3184
 

Join Our Mailing List