Revealing the real value
EDITOR ’ S CHOICE TCO TIPPING POINT
SUMITOMO
Revealing the real value
Cost pressures are frequently cited by companies as a reason for not investing in new machinery . Put off by the upfront price tag , many persist with tried and tested systems . But this can often be at the detriment of long-term performance and profits . Ashlee Gough at Sumitomo ( SHI ) Demag UK reviews the tipping point when injection moulding machinery loses its value , becomes financially unviable to maintain , and can hit you where it hurts most … on the bottom line .
Let ’ s face it , we ’ ve all learned the ‘ get what you pay for ’ lesson the hard way . It is a universal and age-old dilemma . We want to pay less . But equally , we want a product , service or experience to deliver more .
By nature people are wired to choose cost over value . Yet , by flipping this narrative , value can actually save you money and make you more . It is understandably a hard concept to grapple with . But when we start to really analyse the cost of ownership in full context , what is the real value to you and your business ? What results would you see , and when ?
What ’ s your worth ? Warren Buffet famously said : “ Price is what you pay ; value is what you get .” Although he was applying this statement to stock investments , it was still money driven . In the case of fast-paced manufacturing , the same proclamation rings true . When quality and speed underpin commercial success , reliability is paramount . Investing in new equipment yields direct benefits through lower service requirements as well as higher quality parts and greater output .
Ashlee Gough
When unplanned downtime occurs , no value is being produced . Yet , operational overhead costs continue to grow - directly impacting the bottom line .
Calculating the real value in polymer processing really comes down to machine reliability , looking beyond the explicit costs and weighing in all the likely expenses you may incur across the lifespan of your equipment .
Sumitomo ( SHI ) Demag estimates that there are currently 15,000 injection moulding machines in the field throughout the UK and Ireland . However , these are only being replaced at an average of 200 to 250 new machines per year . Although many moulding machines can last 20 + years , the value question moulders should ask themselves is whether a machine that ’ s older that 20 years is economical to run ?
Avoid circling the downtime drain
For most processors , downtime is the single largest source of lost production time . Every product that comes off the line after processing and finishing has a value attached to it .
Unplanned downtime is the biggest drain . When unplanned downtime occurs , no value is being produced . Yet , operational overhead costs continue to grow - directly impacting the bottom line .
Whatever machine architecture you opt for , reliability will , to a large degree , be dictated by build quality . Additionally , equipment that is poorly maintained will likely breakdown more frequently . This impacts quality , as well as productivity and Overall Equipment Effectiveness ( OEE ).
Adopting a ‘ run to failure ’ mindset can be risky . Especially when customer schedules and stock holdings are so reliant on quick , seamless component deliveries .
Make reasonable rationalisations
Reliability can be notoriously difficult for a processor to quantify . It really does depend on cycle time , process demand ( materials processed , quality of tooling , tool weights , number of functions utilised etc .,) and whether the machine is properly and regularly maintained .
It might sound obvious , but the single biggest thing users can do to ensure machine reliability and longevity is to carry out the service work that is highlighted on the machines ’ HMI , or in the instruction manual . Planned maintenance invariably has a lesser
40 PECM Issue 69