INJECTION MOLDING ENERGY CONSERVATION SEMINAR: MODERN INJECTION MOLDING

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INJECTION MOLDING ENERGY CONSERVATION SEMINAR
MODERN INJECTION MOLDING

• David O. Kazmer, P.E., Ph.D.
• Northeast Utilities Auditorium,
• Berlin, CT

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Economics 101 Energy Conservation 101?

• Adam Smith
• Wealth of Nations, 1776
• Each individual "intending only his own gain"
  must exchange what he owns or produces with
  others
• By division of labor and a free market, public
  interest is advanced.
• Does this invisible hand serve energy
  conservation?

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Lets Play The Price Is Right
0.25/serving
0.20/serving
0.35/serving
0.87/serving

• Economic choices are usually rational
• Role of government to provide transfer prices and
  incentives

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Agenda

• Modern Molding Technologies
• Economic Structures Data
• Evaluation of Injection Molding
• Class 0 Obsolete
• Class 1 Standard
• Class 2 Efficient
• Class 3 Lights Out
• Competitive Strategies
• Conclusions

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Molding TechnologiesModular Molds

• Modularity standardization have provided
• Reduced design time mold tooling costs
• 10 minute quick change in press
• Trend reversal
• Cheap molds
• Prototype molds
• Lower importance of quick change givenexcess
  capacity

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Molding TechnologiesAll Electric Machines

• All electric advantages
• 50 of the power
• Silent operation
• Cleanliness
• Precision
• Reduced AC costs
• Trend to continue
• Automotive hybrids fuel motor technology
• Asian machine technology improves

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Molding TechnologiesHot Runners

• Melt delivery systems provide
• Low pressure drops
• Fast cycle times
• Zero material waste
• Tight quality control
• Trend to continue
• Lower priced systems
• New technologies
• Economic decisions

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Molding TechnologiesCavity Pressure Control

• Closed loop pressure feedback provides
• Automatic V/P switchover
• Improved consistency
• Quality control data
• Trend to continue
• Low cost sensors
• Cheap computers
• New technologies
• Improved control
• Improved sensing

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Modern Manufacturing
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Molding TechnologiesAutomation

• Robotics provides for
• Reduced labor content (demolding degating)
• Repeatable cycle times
• Fast cycle times
• Trend to continue
• Cheap computers
• Low cost motors standard designs

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Molding TechnologiesQuality Control

• Quality control systems should enable
• Automatic acceptance or rejection
• 100 part testing
• Automatic cycling
• Variance analysis
• Trend to grow
• SPC is crude
• Sensoranalysis explosion
• Improved capabilities

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Molding TechnologiesElectronic Data Systems

• Electronic data systems should enable
• Production scheduling
• Materials requirements planning
• Real time plant feedback
• Real time process feedback
• Trend to grow
• Networked supply chains
• Science-based products
• Aggressive competitors

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Molding TechnologiesOthers

• Coinjection
• Dynamic feed
• Gas assist
• In-mold assembly
• In-mold color
• In-mold film
• In-mold painting
• Insert molding
• Lost core molding

• Mold filling analysis
• MuCell
• Pad printing
• Pulsed heating
• Rapid prototyping
• Stack molds
• Thin wall
• Two-shot molding
• Water assist

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Agenda

• Modern Molding Technologies
• Economic Structures Data
• Evaluation of Injection Molding
• Class 0 Obsolete
• Class 1 Standard
• Class 2 Efficient
• Class 3 Lights Out
• Competitive Strategies
• Conclusions

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Cost Structures
TotalProduction Costs
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Cost Parameters

• Cost parameters N.E. China
• Operator labor 13/hr 0.70/hr
• Eng/Mgt labor 30/hr 3/hr
• Energy cost 0.08/kWh
• ABS resin 1477/ton 950/ton
• Machinery cost 30/hr 15/hr
• Facilities cost 7.00/ft2 4.20/ft2
• Maintenance rate 10 20

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Agenda

• Modern Molding Technologies
• Economic Structures Data
• Evaluation of Injection Molding
• Class 0 Obsolete
• Class 1 Standard
• Class 2 Efficient
• Class 3 Lights Out
• Competitive Strategies
• Conclusions

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Evaluation of Injection Molding

• Case Study for a Mid-Sized Molder
• 200 million parts per year
• Average part weight 10g

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Class 0 ObsoleteOperating Conditions

• 8 cavities/mold with cold runners
• Poorly selected hydraulic machines (26 kW)
• 50 seconds per cycle (optimistic)
• Cooling issues semi-automatic
• 95 quality level (optimistic)
• 1 operator per 1 machine
• 1 eng/mgt per 15 operators
• 2 shifts, 5 days per week
• 4 hour setup per 10,000 parts

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Class 0 ObsoleteFactory Characteristics
Operators
Machines
Eng/Mgt
Energy Use
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Class 0 ObsoleteCost Data
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Class 1 StandardOperating Conditions

• 16 cavities/mold with 50 hot runners
• Well selected hydraulic machines (30 kW)
• 45 seconds per cycle (optimistic)
• 98 quality level (optimistic)
• 1 operator per 2 machines
• 1 eng/mgt per 15 operators
• 2 shifts, 5 days per week
• 2 hour setup per 10,000 parts

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Class 1 StandardFactory Characteristics
Operators
Machines
Eng/Mgt
Energy Use
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Class 1 StandardCost Data
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Class 2 EfficientOperating Conditions

• 32 cavities/mold with hot runners
• Electric machines (26 kW)
• 40 seconds per cycle, fully automatic
• 99 quality level
• 1 operator per 4 machine
• 1 eng/mgt per 15 operators
• 3 shifts, 5 days per week
• 1 hour setup per 10,000 parts

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Class 2 EfficientFactory Characteristics
Operators
Machines
Eng/Mgt
Energy Use
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Class 2 EfficientCost Data
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Class 3 Lights OutOperating Conditions

• 32 cavities/mold with hot runners
• Electric machines (22 kW)
• 35 seconds per cycle
• Fully automatic including crating, etc.
• 99.9 quality level
• 1 operator per all machines
• 1 eng/mgt per all machines
• 3 shifts, 7 days per week
• 0.5 hour setup per 10,000 parts

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Class 3 Lights OutFactory Characteristics
Operators
Machines
Eng/Mgt
Energy Use
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Class 3 Lights OutCost Data
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Comparison

• New England

• China

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Head to Head Competitive Assessment
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Validation World Production

• US Plastics industry went from surplus of 894
  million in 2000 to a deficit of 1,387 million in
  2002
• A swing of 2,281 million.
• In 2001, China exported 6bn of fabricated
  plastic products last year.
• China also exports plastics in many other forms
• In 2002 China doubled the volume of its exports
• China is world's largest petrochemical importer
• Chinese petrochemical demand is doubling every 8
  years.

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Validation Plastic Bags

• In 2003, US imported more than 100bn plastic bags
• A coalition (Intelplast Group, PCL Packaging and
  Sonoco Products) claimed that Asian countries
  were flooding the US market with below-cost PE
  bags and demanded an anti-dumping duty
• In September, the US Interl Trade Commission
  determined that "there is a reasonable indication
  that a US industry is threatened with material
  injury by reason of imports of polyethylene
  retail carrier bags from China, Malaysia and
  Thailand that are allegedly sold in the United
  States at less than fair value".

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Agenda

• Modern Molding Technologies
• Economic Structures Data
• Evaluation of Injection Molding
• Class 0 Obsolete
• Class 1 Standard
• Class 2 Efficient
• Class 3 Lights Out
• Competitive Strategies
• Conclusions

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Competitive StrategiesBest Way Not to Compete

• Dont be an average custom molder
• Non-optimal, semi-auto cycles
• Low, variable production quantities
• High labor content
• Material cost disadvantages
• Higher volume jobs going overseas
• Lower volume jobs going to short run prototype
  shops
• Middle volume jobs are scarce and cheap

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Competitive StrategiesProduct Specialization

• Research indicates plastic parts are 10-40 of
  product value
• Value is retained if vertically integrated
• Outsourced suppliers typically recoup 5-10
• Processors should focus on products
• Vertical integration allows tight integration
  between market, design, and processing
• Product technology IP raises barriers to
  competition

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Product Specialization Case Study

• Head up displaymaker
• Internal molder
• 15 reflector
• 0.25 Thick
• 100 sec cycle
• Very highretained profit
• Other example Visteon HVAC Units
• Other example Nypro cell phones

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Competitive StrategiesProcess Specialization

• Focus on advanced processes
• Technology allows new capabilities
• Investment, know how, and IP provides barriers
  for competition
• Process focus can lead to a market niche
• Market niche provides greater recognition with
  better, more confident service

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Process Specialization Case Study

• Proto-mold
• Automated quote,design, build, mold
• f(Q,t)
• Suggested changes
• Parts in 5 days
• 100-10,000 qty
• 7.00 - 3.00 vs. 0.40 in commodity market
• Other example NAL Stanley in auto lighting
• Use of multi-shot molding

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Agenda

• Modern Molding Technologies
• Economic Structures Data
• Evaluation of Injection Molding
• Class 0 Obsolete
• Class 1 Standard
• Class 2 Efficient
• Class 3 Lights Out
• Competitive Strategies
• Conclusions

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Conclusions

• Competitiveness isnt all about labor rates
• Automation localization can largely offset
• True commodities (bags) in jeopardy?
• It is about efficiency
• Knowing which/how to leverage technology
• and differentiation
• Market understanding, penetration, recognition
• Product process specialization
• Cost time performance

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Final Thoughts

• Mid-Term Issue Oil Natural Gas Supply
• Increasing Asian demand
• Weakening dollar
• Government debt
• Trade deficit
• Euro as preferred currency
• Long-Term Labor Demand
• Global supply of all labor
• Improving supply chains