Actionable Steps Plastic Professionals can Take to Achieve Profit Goals For some plastic processors, improving…
The Magic of Injection Molding Training On Profits
“Sales are off, machines are idle, I’ve let people go, and you think I should start more employee training?”
“Yes we do!”
How To Make Higher Profits with Each Injection Molding Machine
In the current business climate, some molders are operating below capacity – machines are idle. Others are doing quite well. Whichever situation fits your plant, you can make more money by increasing the efficiency of your operating molding machines and even shutting other machines. Here’s how…
If you have 20 machines in production and you increase the efficiency of each machine by 10%, you can shut down 2 machines. The savings in direct labor and electricity will about $60,000 per year for injection machines at just a $30/hr MHR (Machine Hour Rate). The additional benefit will be that you now have two more machines ready for production when times get better or for additional business.
The Economics of Production Efficiency in Good Times
If you have a 10 machine molding plant and you buy a new machine for $100,000, you will generate, in a well-run company, a profit of $15,000 per year. However, if you increase the productivity of your existing 10 machines by 5%, you will generate an additional profit of $120,000 per year .
Here Is A Rule To Remember:
A 2% increase in productivity of existing machines will generate as much profit as a 10% increase number of machines.
Why do we tell you this? It’s because we’re in the business of improving production efficiency. We provide the training to your employees that makes increased production efficiency possible. When your employees know more, they can do more. Training is not expensive, ignorance is. Now is the time to implement structured, on-going training for all your employees.
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