While we do not know what decision making process is best for your company, we do think that including all of your department heads is important from the beginning. There are often many important considerations left out in this decision making process. Manufacturing molded plastic parts in-house can be a very challenging prospect from an efficiency, cost perspective and quality perspective. If you looking plastic fabricator in Adelaide you can visit http://www.prodigyplastics.com.au/. If not careful it will provide a costly distraction from your core competencies your company relies on to profit.
However, that said, let’s look at some considerations that will help you evaluate the possible addition to your company’s production responsibilities and see if it will enhance your bottom line.
Ten Things to Consider When Deciding To Mold “In-House”
- Determine the proper mixture of assets in the total asset structure.
- Formulate a sound investment strategy for allocation and timely acquisition of equipment and personnel.
- Don’t forget to account for hard and soft capital for the examination and financing alternatives.
- What impact will the investment have on the company’s working capital?
- What will your raw material ordering costs be considering purchasing will need to be trained and familiarized with raw material providers and their common practices.
- What will the carrying costs be for the storage of raw material and molded parts.
- What effect will the new equipment; molding machines, grinder, heaters, dryers and chillers have on our company’s insurance.
- How much will the costs of added electrical installations and usage add to the operating costs.
- There are many issues to consider but once you have fully recorded and considered them all they must be weighed against the time value of money; including all of your acquisition and set-up costs as well as the costs of downtime experienced due to a multitude of manufacturing and personnel reasons.
- Last but not least, what effect will the molding operation have on existing core product production, including the noise, heat and smells of the molding materials and chemicals.
Things to Consider When Outsourcing Your Molding
In a nutshell, all of the above considerations are eliminated.
- A competent molder of your choice will most likely also have second operation capabilities that can be performed at the machine during the molding process at no or very low cost.
- Many auxiliary services needed such as packaging, assembly and part decoration that are also not a part of your core operational responsibilities can be performed by the molder, saving you time and money.
- The molder you choose should have a depth of experience and talent so that the molding operation is not reliant on one or two employees being present to function efficiently, or at all.
- Your chosen molder will have greater purchasing power with the raw material suppliers and be able to pass those savings on to you.
- A good molder will have more machines to allow for better turn around on a wider variety of parts you need.