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Cost of cheap invariably steep

IT’S an eye-roll-inducing cliché for some, but a life lesson many seem reluctant to learn, at their profitability’s peril. Although widely acknowledged as a cost-effective technology for producing high-quality and identical mostly plastic components, lack of a full grasp of the costs of injection moulding can be a customer’s downfall, cautions Bruce Allen, managing director of Ipex Machinery.

28 March 2022
in Acquisitions & evolutions
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SmartPower 120

Wittman Battenfeld Smart Power injection moulding machines are fitted with a Drive-on-Demand system that combines a fast-responding, speed-controlled, air-cooled servo motor with a fixed displacement pump. This drive unit is only activated when required by movements and pressure build-up. During cooling times or cycle pauses for parts handling, the servo drive remains switched off and thus consumes no energy. The OEM’s calculations have revealed that the system lowers energy consumption by up to 35% compared to modern variable displacement pump systems.

Prospective industry investors would do well to heed his advice. Ipex is a leading supplier of injection moulding machinery that counts prominent brands Wittman Battenfeld, Hasco and Meech among its agencies, which puts it in a strong position to speak authoritatively on the ins and outs of budgeting, including false economy. 

Amid the costs of capital, raw materials, energy, mould and mould maintenance, machine maintenance and business overheads, the biggest drain on the bottom line is an idle machine caused by, for instance, component failure, Bruce asserts. ‘When a machine breaks, the cost of not having it in service is extremely high. Investing in machines with a sound overall equipment effectiveness and low energy cost wins every time over buying a cheap machine that may require constant maintenance and repair.’

Consideration of uptime versus downtime is almost always overlooked during the machinery buying decision process, Ipex sales manager for Wittman Battenfeld, Sean Kleingeld, confirms. ‘Most machines run well in their first year,’ he states. ‘When a machine has had only an oil filter change in five years, which keeps it operating at 98% uptime besides mould changes, the unit is making money constantly. Maintenance costs and setbacks such as oil leaks are a huge cost rarely taken into account. Leaking oil needs regular topping up plus associated machine cleaning. The oil cooling tower needed for most machines adds to the energy cost. 

Energy efficiency crucial

‘Wittman Battenfeld Smart Power models run the machine’s oil at ambient temperature, which needs no cooling, thus lowering running costs. They also use a kinetic energy recovery system that harnesses energy from the servo motor to heat zone one of the barrel,’ Sean states. ‘In this way, the machine creates its own energy for more efficient operation. Servo motors need to be considered, as do fully electric machines. With energy costs going up annually, energy efficiency is essential, even if the machine costs slightly more upfront.’

Reliable equipment that runs as new for 10 or 15 years gives a consistent cost per part, he adds. ‘If energy or material costs rise, all competitors are in the same boat, but if a machine is using 25% less energy than the opposition’s, it’s winning in long-term cost per part.’  

Bruce sums up the buying decision priorities thus: ‘Investments should be based on thorough analysis of equipment energy efficiency, machine quality and reliability, and repeatability, which ensures that products are identical time and time again – same shot weight, same size, same strength.’ 

Consistent shots, Sean continues, also minimise costly scrap. ‘Closed loop recycling is a waste saver, as it feeds first grade regrind back into the product, reducing waste and eliminating regrind contamination, which renders product usable only in certain applications. There is less costly real estate and fewer manhours are needed to process the waste.’

Of course, there are alternatives to injection moulding that could be added to the buying pros and cons, but, again, their apparent benefits cannot be taken at face value. 

Machines such as the Eco Xpress may have competitors as quick but not as energy efficient, as the fully-electric Eco Xpress, which uses about 0.36kW/hour for every kilogram plasticised. 

Buy or borrow?

The choice to buy or borrow also warrants careful thought. ‘Rental finance is off-balance sheet and written off monthly as an operating expense, creating tax benefits,’ Sean elaborates. ‘Another option is a fixed contract with no capital outlay but a monthly per-shot cost.’

Another cliché that rings true is that about knowledge and power. Ipex advises customers to collect as much data as possible from their machines to achieve accurate costing, which with the MES Software is easy to do with Wittmann Battenfeld equipment. You really get to see the benefit of your investment using Industry 4.0 standard equipment. 

The industry should enjoy some fresh innovation injections in 2022, Sean predicts. First will be a greater focus on improved energy efficiency and the technology enhancements it will generate. ‘We can also expect further developments on preventive maintenance software, with some time having passed since WIBA version 2 was introduced. 

‘Artificial intelligence is also going to come into its own, with machines possibly becoming voice activated and operated.’

Perhaps tomorrow’s bots will be programmed to repeat those tired, old clichés, many of which contain the wisest words.

Meech expands production facilities

MEECH INTERNATIONAL, a manufacturer of static control, web cleaning and compressed air technology, has expanded its UK headquarters in Oxfordshire, with a new 2 694m2 production facility at Tungsten Park.

This facility houses the company’s production, purchasing, order processing and customer service teams of approximately 40 people, while the original building retains all other aspects of the business.

meech international Interior 1536x1024 1

‘We’re delighted with the addition of the new unit as its modern and airy feel makes it a pleasant working environment for staff. Additionally, it enables the teams to operate even more efficiently with one another and gives each of them the space they require to continue driving growth further still,’ remarks CEO Chris Francis. 

‘The space the addition frees up in the existing building provides a platform for growth, as we now have more room to facilitate research and development, which we are investing more into. This allows us to continue to provide innovative, customer-led solutions to the industries we work in,’ he states.

Chris also notes that Meech International has experienced substantial growth over the years and is excited to see how this change in structure will benefit its value chain partnerships and what opportunities may arise.

Ed’s note: Meech International is represented exclusively in southern Africa by Ipex machinery. PPM apologises for incorrectly stating that Pym Investments distributes Meech static eliminators in South Africa in a March 2021 article.

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