Cost recovery

Do you believe one hundred percent investment profit? 

　　Spending RMB 2,000 for moldflow can save over RMB 200,000 for mold modification. Do you believe it?

　　 May 2009 when I (Bin Zhigang) was still working for ACE Mold as a consultant, I received a call from Miss Chen, purchasing agent of JSW Mold, on Friday. Because her company’s Technical Director Mr. Xie wanted to invite me to address mold (moldflow) problem for them. I visited his company on Saturday, but the Vice General Manager Mr.Tan entertained me because the Technical Director Mr. Xie had worked overnight. He showed me a panel product with 1200mm in length and 800mm in width, which was made of Jinfa PPS+50%GF. Meanwhile, he also told me that he had adopted solutions from design and injection companies (studios) with moldflow business, but both failed in mold trial. One of them fed rubber in the middle withф12 pin valve point gate, while the other has 6 pin valve point gates on one side.

　　When I pointed out the pin valvewas warpaged seriously and the 6-point side gate had great clamp force,which indicating that warpage could be solved. Listening to my sensible analysis, he asked what they should do. “Making a new moldflow analysis” was the solution. They only needed to offer me RMB 2000. However, only two steps could completely solve the current problem, namely, modifying the product and replacing hot runners in the middle of the product. Mr. Tan refused to modify the product immediately, giving no chance for the cooperation.

Four months later I founded my own company and became a moldflowsupplier of JSW Mold. I asked how they handled the problematic mold, and Mr. Tan said that it worked well because he followed my advice to modify the product and arrange hot runners in the middle of product. If they adopted my advice earlier, they could save over RMB 200,000 for mold modification. (Giving up two hot runners, with one having a ф10 pin valve gate and another having 6 hot gates, costing about RMB 200,000 in 2009). Together with mold modification and hot runner mold trial, the total cost was more than RMB 250,000.

Mr. Tan went on, “I don’t know how you gave such correct solution though you didn’t make analysis at that time.” I smiled. Must it use software to analyze moldflow?

Analysis on moldflow cost and benefit

Taking a mold with the value of RMB400,000 as an example, if the mold is modified for six times, with the cost of RMB6,000 for each modification (inclusive of the cost of mold trial), then the total cost for the mold modifications will be RMB36,000. If moldflow analysis is adopted for mold modification for three times (also including estimation of mold trial cost), then:

Before moldflow (6 modifications) After moldflow (3 modifications) Mold modification cost RMB6,000/time, 36,000 18,000 Savedcost (estimation)12,000-13,500

 

Moldflow analysis, hot runner, and injection molding machine payback period, and 

profit compare.