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Plastic Injection

Molding Should
Cost Model
Pinnacle Sourcing & Consultancy

AGENDA

Definitions
Plastics
Plastic Injection Molding
Part Description
Costing Process By First Principle
Part Should Cost (Ex-W / FOB / CIF)
Definitions

Plastics are polymers: Long chains of atoms bonded to one another.

Plastic Injection molding is a manufacturing technique for making parts


from thermoplastic material only NOT from thermosetting material. Molten
plastic is injected at high pressure into a mould, which is the inverse of the
product's shape. The mould is made from metal, usually either steel or
aluminum, and precision-machined to form the features of the desired part.
Injection molding is widely used for manufacturing a variety of parts, from the
smallest component to entire body panels of cars. Injection Molding is the
most common method of production, with some commonly made items
including bottle caps and outdoor furniture, butter tubs, yogurt containers,
closures, fittings and razors.
Injection Molding Machine
Part Description

Customer XXX
PN# 093D0209 (IR Housing Bottom)
Material - GE Noryl PX0840, 039A0289, BK 1A497, Black - Noryl is a blend
of polyphenylene oxide (PPO) and polystyrene (PS) which was developed in
1966 by General Electric Plastics (now owned by SABIC). Specific Gravity -
1.06. g/cm
Part Net Weight - 0.0093 KG
Wall Thickness - 0.08 IN
Part Vol. 0.530 Cu. In
EAU - 4864110
Part Description Cont.
Costing First Principle
A. Raw Mtrl. Cost Calculation

RM EXW Mumbai price per KG (USD) = 5

RM Landed Del/NCR price per KG (USD) = 5.15 (~EXW+CST 2% + transportation


cost @ $340/8 Ton Truck {~$0.042 per KG})

Part Net Weight = 0.0093 KG


Part Gross Weight = Part Net Weight * 4% burning losses (in case of Hot Runner
system) or 7% burning losses (in case of Cold Runner) ~ 0.0097 KG (This is Hot
Runner)

Raw Mtrl. Cost per pc. = Part Gross Weight (KG)* Landed RM cost per KG =
0.0097 * 5.15 ~ $ 0.05
Costing First Principle
B. Process Cost Calculation

Process involved will only be PI Molding (No Pre Heating or De-flashing Rqrd. in
Automatic Molding machines with Hot runner systems)

Machine Tonnage (clamp force) - The Clamp Unit of an injection molding machine is
rated by the maximum amount of clamp force that the machine is capable of
producing. This force is required in order to keep the mold closed during the injection
process, which is the primary purpose of the clamp unit. Normally, the force rating is
stated in tons. So, a specific machine having a rating of 200 tons is capable of
producing a maximum clamping force equivalent to a total of 200 tons.

But, how much clamp force is necessary?


How Much Force Is Required?

Machine Tonnage (clamp force) Calculation = Part Projection Area * no. of cavities *
Flow constant * Clamping factor = 2.84 sq. in * 4 * 5 (Noryl is low flow) = 57 T ~ 60
T.

Note: Metal Flow Index varies from 5 to 20 (low flow to high low) & is directly related to clamp factor ranging from 2 to 8 (low
flow to high flow). To understand more on Metal Flow Index, pls visit http://www.iplas.com/clamptonnage.html
Costing First Principle
B. Process Cost Calculation

Cost of 60 T L&T (Now Toshiba Machine) ~ 1.86 Million INR ~ 35700 USD
Costing First Principle
B. Process Cost Calculation

Cycle time (Sec) - With centerline cooling. W. Thick=0.08, Inj. Temp=605 F/318 C,
Mold Temp.=250 F/121 C, Ejection temp.=280 F/137 C; 18 Seconds ~ 200 Shots
per Hour

Productivity per Hour No. of shots * no. of cavities = 200 * 4 = 800 ~ 720 pcs per
hour

With Avg. Cooling, Cycle Time = 14.7 Sec.

Source:
http://www.downloadmanagerapp.com/gb/sg/?adnm=18409097082&i=s&grid=B&lg=EN&cc=IN&clg=en&c=1&d=0&cid=_223244601&kw=download%20free%20
software&mn=sourceforge.net&Network=D&expr=&agid=_2463981735
Costing First Principle
B. Process Cost Calculation

Machine Hour Rate (MHR) = INR 206


MHR CALCULATION- SUMMARY SHEET

Interest Depreciati Power Total


Power Consuma Utility Maintena Labour
Cost, SSI on / Hrs, Cost Cost /
Rating bles Cost nce Cost 1 S +1S
L&T Cost of Unit 10 Yrs @65% Eff Hrs
Molding Machine Inc
Sl
Machine - Accessorie
De-Tech s (Lacs)
Rs 6.5 per
13.50% 7.34% KWH 2% 2% 4% 5000*2
KW

1 60 Ton 18.6 52.31 28.44 16.4 69.29 7.75 7.75 15.50 25 206.0

Process cost per pc. MHR/Productivity = 206/720 = INR 0.286 ~ $ 0.0054


Costing First Principle
C. Other Cost Calculation

Inventory
1.5% of Material Cost 0.040
Carrying Cost

Rejection Cost 1 % of RM + Processing Cost 0.029


Profit 7% of Processing Cost 0.020
Overheads 7% of Processing Cost 0.020
INR 0.109 ~ USD
Total Other cost
0.0021

Total Amount Ex-W (Without packaging) $ = (A + B + C) = $ 0.05 + $ 0.0054 + $


0.0021 = $ 0.0575

Packaging Cost assumed per pc. $ = 2% of (RM + Processing Cost) = 2 % of ($


0.05 + $ 0.0054) = $ 0.00111

Total Amount Ex-W (With packaging) $ = $ 0.0575 + $ 0.00111 = $ 0.058


Costing First Principle
D. FOB / CIF Cost Calculation

FOB Cost Calculation


Volume of single box ft3 0.004 Size is 6X5X5 (cm)
Volume of Master
1.157 Considering 180 Pcs in one carton (32X32X32) (cm)
Carton f3
Volume of 20 ft3
1197.25 Taken from Freight Forwarder (Griffin and Smith Comp.)
container
No. of Pieces in 180 * (Volume of 20 ft3 container / Volume of Master
186231
Container Carton f3)
Forwarding Cost of 20 ft
container to Mumbai 49000 Taken from Freight Forwarder (Griffin and Smith Comp.)
(INR)
INR 0.26311 ~
Per Piece Cost (INR) Forwarding Cost of container / No. of pcs Per container
USD 0.005

Total FOB India cost per pc. (With packaging) = $ 0.058 + $ 0.005 = $ 0.063

Total CIF USA cost per pc. (With packaging) = FOB + 8% of FOB = 0.063 + 0.08 *
0.063 = $ 0.068
Questions??..

Thank You

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