Plastics Industry Workshop

Scott R. Kroeger General Manager Husky Injection Molding Systems, Inc. October 2004

8% 4% 22% 22%

2% 4%

Automotive
Large tonnage
60% 6% 19% 6% 14% 44%

Closures
Custom
53%
Primary Equipment Energy Labor

14% 6%

Building & infrastructure Maintenance

*Excluding resin

PET
13%

Custom
Molder
50% 13%

17%

Preforms

23%

Typical Costs Drivers

Cost of an Injection Molded Part

ENERGY
1% 1% 9% 1% 4% 8% 4% 3% 2% 4% 3% 2%

3%

75%

10% 11%

59%

Material Machine Molds Labor Cooling Space Other Energy

Machinery Heat, Vent, A.C. Lighting Chillers Cooling Tower Compressors Grinders Tools Misc.

Source: Demag

Analyzing PET Energy Consumption

Machine - Increased Productivity

PET Application
Part: 47g Preform

Cavities Tonnage

Energy Cycle Energy (kWh/kg) Time Cost for 76 MM units* 0.24 14.5 $24,000

Additional Annual Production Units

Hydraulic Hydromechanical All Electric

60

275

35 MM
-

48

400

0.20

17.0

$20,000

* At $0.08/kWh

Typical Energy Requirements

Plasticizing Injection Clamp Stroke Core pulls/ejection Idle time 50% 17% 13% 10% 10%

Hydraulic Machine

Electric Screw Drive

1961 All Electric Machine

Energy Consumption Comparison

90T, 32 cavity closure system

Parameter Shot weight Total cycle time Production power

Unit of Measure g s kW

Hydraulic Screw Drive 41.6 5.88 26.87

Electric Screw Drive 41.6 5.81 22.7

Energy savings

16%

Energy Consumption Comparison

300T, 16 cavity cup system

Parameter

Unit of Measure g s kW

5-7 Yr Old H-M Machine 117.5 4.56 88.2

New Generation H-M Machine 113.8 4.39 78.7

Shot weight Total cycle time Production power

Energy savings

11%

Energy Usage Comparison

100% 80% Energy Usage 60% 40% 20% 0% Standard Hydraulic Enhanced Hydraulic Hybrid All Electric
10-20% 40-50%

All electric versus hybrid is only 10-20% Source: Ferromatik Milacron article February 2002

All electric claim 40-50% improvement over hydraulic

90 - 100 US tons:
Oil Consumption [ l ] Stroke 350mm (13.8") 0.638 Clamp up incl shutter 0.329 Decompression 0.104 Total 1.071

Hydraulic Clamp - 100 US tons :

9 clamp cylinder diameter at stroke of 350 mm (13.8) = 14.5 l + stroke cylinders Lower speed Larger hydraulic components, i.e pumps Larger oil compression Higher energy consumption

Mold Stroke Oil Usage

Energy Machine Cooling

drives, gearboxes, hydraulic oil In most cases, all-electric machines are completely air cooled except for the feed throat
Requires an efficient HVAC system

Hylectric machine makes use of water cooled motors,

Consider typical plant cooling costs:

Tower water system: $150 per ton of cooling installed + 0.2kw per ton to operate HVAC system: $600 per ton of cooling installed + 1kw per ton to operate

Tower water is a more efficient and cost effective

cooling method

Enclosed Powerpack & Water-Cooled Motors

Repeatability - Comparison
Hydro-mechanical 90 vs. 165 Ton All Electric

2 Cavity Cell Phone

Parts Sampled Average Shot Weight (g) Shot Repeatability (6 sigma)

H-M 30 34.36 0.12

All Electric 30 34.42 0.64

Additional Advantages of H-M Machines

High injection rates

Electric Injection Limitations

Instantaneous Injection Power
500 450 400 350 Accumulator based Hydraulic Injection Current "Practical" Servo Power Limit

Power (kW)

300 250 200 150 100 50 0 20 25 32 35 42 50 60 70 85 100 125 145 155 155 170 185 220

Screw Diameter (mm)

High Output Closure Systems

Injection Rates

2 X 64 cavity hot runner mold closure mold 2,500 cc/sec. required

Additional Advantages
High injection rates Lower clamp tonnage

Test Results STM & MTM

Application Clamp Tonnage
Competitive HydroMachine Mechanical Hybrid

Cycle
Competitive HydroMachine Mechanical Hybrid

38 mm Closure Thinwall Dish Battery Cover Cell Phone Housing Cell Phone Housing Oval Container Oval Lid

100 55 75 100 120 150 90

80 (20%) 20 (63%) 40 (46%) 52 (48%) 70 (42%) 90 (40%) 50 (45%)

6.0 3.0 10.0 18.5 14.0 6.0 5.8

5.2 (13%) 2.5 (17%) 8.6 (14%) 15.2 (18%) 12.6 (10%) 5.0 (17%) 5.1 (12%)

Average Savings

43%

14%

Test Results MTM & LTM

Application Clamp Tonnage
Competitive HydroMachine Mechanical Hybrid

Cycle
Competitive HydroMachine Mechanical Hybrid

Industrial Container PC Lamp Bezel Fan Blade Fan Shroud Infant Car Seat Storage Tote

1400 1100 1500 1000 750 1000

990 (30%) 880 (20%) 990 (33%) 1000 (0%) 650 (13%) 800 (20%)

69.0 25.0 99.0 65.0 83.0 62.0

63.1 (9%) 20.0 (20%) 80.0 (20%) 53.0 (20%) 63.5 (24%) 44.0 (29%)

Average Savings

19%

20%

Test Results Summary

95% of applications are tiebar and not tonnage limited Increasing the tiebar spacing results in: Lower tonnage machine requirement Lower energy requirements Maximized floor space Faster cycle times

Macro Level Factory Efficiency

Efficient Factories
Methodically Implement Innovation Establish a base of reliable and repeatable molding
equipment Eliminate external influences on molding processes Rely on stable and robust infrastructure Automate to eliminate variation Establish and maintain
Tooling/workcell standards Quick mold change procedures Optimal molding recipes Maintenance procedures

Mold unattended-using SPC to ensure quality control

Optimize Factory Layout and Equipment

Re-Think the machine cell and factory layout
When selecting machines look for ways to improve system output Hydraulic services to the mold Auxiliary power units may be required Stack Molds Machine automation Mold design / maximize cooling Part Design Minimize the number of systems required Eliminate secondary operations Consolidation of Parts Multi-material IML

Efficient Factories
Create healthy work environments Establish and follow best practices
Environmental health and safety Air quality Lighting Noise

Theoretical Throughput (TT)

Unavailable No work

Overall Factory Efficiency (OFE) = AT/TT

Scheduled down Mold change Unscheduled downtime Cavities blocked

Idle

Planned Throughput (PT)

Overall Equipment Efficiency (OEE) = AT/PT
Cycle variance Producing scrap

Faulted

Throughput

Actual Throughput (AT)

Producing good parts

Running

Machine State

Factors Impacting Equipment/Factory Throughput

Factory Efficiency-Standard Definition

Factory Design as a System:

Maximizes Factory Efficiency Optimizes equipment utilization Raises automation levels Drives process / product consistency Integrates processes to reduce energy consumption Allows for flexibility and easy expansion

Factory Planning Services

Factory Audits Continuous Improvement

Manufacturing Planning

Design & Engineering

Project Management

Factory Audits

Instrument & Analyze existing operations Establish current factory efficiency Quantify improvement opportunities Report on findings and recommendations Compare performance benchmarks

Improvement Area
THROUGHPUT Efficiency Gains Scrap Reduction Cycle Improvement

Opportunity ($/yr)
$400,000 $100,000 $400,000

Comments
OEE Improvement by 5% reduction by 1% 5% improved average cycle time

TOTAL
OPERATIONAL Labor reduction Energy efficiency Inventory Levels Mold Change Time

$900,000
$560,000 $125,000 $100,000 $150,000 reduction of 4 people per shift Pump upgrade, chiller replacement 20% reduction in av. inventory levels Reduction to 1 hour average

TOTAL
PLANT SAFETY Plant Safety

$935,000
$50,000 Reduced WC premiums

TOTAL

$1,900,000

Date:______________ Ratings No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Measure Score Total plant efficiency (TPE) Overall Equipment Efficiency (OEE) Safety, environment, cleanliness, & order Scrap rates Equipment reliability Visual Management Level of standardization Resin Handling System Process services Product Flow and Use of space Inventories On time deliveries Labor productivity Levels of automation Mold change efficiency Commitment to quality Conditions and maintenance of equipment and tools Maintenance standards Information Systems Teamwork and Motivation

Plant Assessment Worksheet Plant:________________ Table 1--Rating

Poor 0 Below Above Average Excellent Average Average 1 2 3 4 X X X X X X X X X X X X X X X X X X X X Best in Class 5 Scores 4 3 4 2 3 1 2 4 3 3 1 4 2 2 2 2 3 2 2 2

Improvement Opportunities

Factory Planning Services

Factory Audits Continuous Improvement

Manufacturing Planning

Design & Engineering

Project Management

Manufacturing Planning

Review product matrix, volumes & schedules Compare primary equipment strategies Define infrastructure requirements Simulate impact of layout alternatives
Sales and Seasonality Shipment by Product Category
7,500,000 Sales 2000-2001 7,000,000 Sales 2001-2002 Ave 6,500,000 Flat Demand

6,000,000 Estimated M onthly Volume

5,500,000

5,000,000

4,500,000

4,000,000

3,500,000

3,000,000

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Machine Hall Layout

FUTURE EXPANSION FUTURE EXPANSION

Finished Products Flow

FUTURE EXPANSION FUTURE EXPANSION

LINK

IN-LINE BUFFER STORAGE

Services Distribution

COOLING TOWERS
LINK
IN-LINE BUFFER STORAGE

SHIPPING / RECEIVING

MECHANICAL ROOM

BLOW MOLDING

WAREHOUSE

RESIN RAILCAR

TRANSFORMERS

SILO

ELECTRICAL ROOM
PAD

SILO

SILO

PREFORM STAGING

SILO

Post Mold Operations

RESIN HANDLING

RESIN RAILCAR

MAINTENANCE

SUPPORT FACILITIES

HP AIR-COMPRESSORS

Raw Materials Flow

Primary Equipment

Supporting Areas

Design Considerations

Benefits of Manufacturing Planning

Define long term strategy to guide short
term decisions Quantify the impact of manufacturing alternatives Benchmark existing operations against current technologies

Factory Design as a System

Factory Audits Continuous Improvement

Manufacturing Planning

Design & Engineering

Project Management

Design and Engineering

Building and process mechanical systems Resin handling and distribution Environmental control systems Mold change alternatives

Displacement Ventilation + Floor Cooling Using free cooling +Heat Recovery+ Dehumidification

Annual operation costs for different concepts

$400,000

$350,000

$300,000 Operation costs ($/a)

$250,000

50%

$200,000

$150,000

$100,000

$50,000

Dehum.

$0 System A System B System C System D System E System F System G System H

Design and Engineering Design and Engineering

Benefits of Design and Engineering

Integrate building and molding process
requirements Lower overall energy consumption Provide reliability and redundancy Seamless expansion capability Identity interferences prior to installation

Factory Design as a System

Factory Audits Continuous Improvement

Manufacturing Planning

Design & Engineering

Project Management

Continuous Improvement
Define key performance indicators Prioritize factory optimization programs Project manage implementation

Methodically Implement Innovation

Methodically Implement Innovation

A 1

A 2

Multi Mold Carrier Technology

Automate to Eliminate Variation

Programmable cranes to automate material handling

Area Gantry Robot provides consistency in packaging

Establish and Maintain Standards

Manufacturing Process - Work Instructions
Scheduling Mold change procedures Molding recipes Maintenance practices Work flow Runner Systems Gating Cavitation Barrel / Clamp combinations Quick mold change provisions Automation

Tooling / Workcell Designs

Infrastructure
Consistency, redundancy, reliability, seamless expansion

PRODUCT REMOVAL ZONE

Packaging/Access to Product Aisle Packaging/Access to Product Aisle

Automation/ Secondary Ops/ Conveyor

Mold Drop/ Staging Area

Automation/ Secondary Ops/ Conveyor Service Manifo ld Drops

Controller

Therm'ts

Sprue/ Insert

Access Aisle (3' - 4')

Therm'ts

Sprue/ In se rt

Electrical Drop

Grinder Raw Material

Grinder Raw Material

SERVICE ZONE

Resin

Workcell Standards

Machine Standardization
30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30%

60%

60%

60%

60%

90%

90%

60%

4 different machines Molds dedicated to machine - average 60% utilization

1 common machine Molds flexible to machine - average 80% utilization

900 [2] Step 4 400 [1] 500 [1] 600 [2] WORKCELL STANDARDS 300 [1] 600 [5] 900 [2]

1400 [2] 600 [2] 900 [2] 1400 [2] 18

Machine Standards/Flexibility Example

Step 5 Injection Capacity (cc) Injection Unit 400 [1] <432 10 mm 300 [1] 432 50 mm 600 [3] 1155 70 mm 600 [5] 3299 900 mm 100 [2] 600 [2] 5655 900 [2] 140 mm 1400 [2] 18 Total Machines

Step1 Step 6 Clamp tons [# machines]

150 [1] 400 [1] 300 [1] 400 [1]

400 [1]

150 [1] 300 [1] 300 [1]

Step 7

300 [1]

150 [1] 600 [3] 300 [1] 400 [1] 500 [1] 600 [1] 600 [3] 300 [2] 500 [1] 600 [3] 600 [1]
600 [3] 500 [1] 600 [2]

300 [2] 900 [6] 400 [2] 500 [2] 600 [1] 900 [2] 900 [6]

600 [2] 600 [2] 900 [2] 900 [2] 1400 [2] 1400 [2]

25 17

Step 2
Step 8 Step 9 Step 3

150 [1] 18 Machine types 300 [1] standardized to 5[1] 400 400 [1]
400 [1] 400 [1]

150 [1] 300 [1] 300 [1]

300 [1] 150 [1] 300 [1]

900 [3] 1400 [2] 40025 Machines [3] 600 [2] 600 [3] 900 [2] 900reduced to 15 [6] 1400 [4] 900 [2] 1400 [2] 900 [6] 400 [3] 600 [3] 900 [2] 900XTB [4] 600 [2] 900 [2] 1400 [2]

16

23
15 15 20

Step 4

400 [1] 300 [1] 500 [1] 40 % better average machine utilization 600 [2]

600 [5] 900 [2]

600 [2] 900 [2] 1400 [2] 600 [2] 900 [2] 1400 [2] 600 [2]

18

Step 5

400 [1]

300 [1]

600 [3]

600 [5] 900 [2]

18

Step 6

400 [1]

300 [1]

600 [3]

900 [6]

17

Case Studies

Water Bottler Medical Thinwall Molder Custom Molder PET Preform Molder Transportation Products China Factory

Water Bottler (Asia Pacific)

Case Study-Water Bottler

(Asia Pacific) Objective: Expand the plant while overcoming major challenges such as: Remote location Logistics for shipping high volume output Lack of electrical and sanitary infrastructure Approach: Develop long-term manufacturing strategy and implementation plan Results: Seamless expansion capability Self-generating power facility (Cogen ready with expansion) Bio-filtration system Closed cooling system to eliminate losses from evaporation Plant and infrastructure layout allowing 10 times more output Delivered a 110,000 Sq/ft facility in less than one year

Medical Thinwall Molder (North America)

(North America)

Case Study-Medical Thinwall Molder

Objective: Launch a new line of products in response to off-shore pricing competition Approach: Upgrade the existing facility to realize performance capabilities of new machines Results: Optimal plant layout allowing workcell automation Detailed specifications for floor slabs, process infrastructure and overhead cranes Plant upgrades completed in eights weeks

Custom Molder (North America)

Case Study-Custom Molder

(North America) Objective: Design a low-emissions facility which incorporates energy conserving technologies Approach: Photovoltaic cells generate 45 KVA of electricity Natural ventilation and day lighting, displacement ventilation, waste heat recovery, in-floor radiant heating and cooling Treatment of all waste water through biological filters Results: Manufacturing flexibility was assured with a machine hall free of columns Infrastructure and material handling were distributed through a full basement Facility maximizes efficiency with the integration of manufacturing automation, building technology and energy conservation

PET Preform Molder (North America)

Analyzing PET Energy Consumption

Case Study-PET Preform Molder

(North America) Objective: Construct a high output preform manufacturing center in six months Approach: Established layout and technical specifications Created master schedule that outlined critical equipment and construction elements Centralized dehumidification system Unique (small volume) molding hall design Results: Molded first part 6 months after kick-off meeting Coupled HVAC and process systems to optimize energy consumption 3D process system design allowed pre-fabrication of pipe sections reducing installation time-ready for seamless expansion

Transportation Products (North America)

Case Study-Transportation Products

(North America) Objective: Launch new injection molding product line to replace SMC thermoforming Approach Convert existing small foot print, light duty manufacturing facility to high performance molding operation Result: Process mechanical system designed and delivered in a prefabricated, insulated enclosure outside the building envelope Floor slabs replaced to support up to 1000 ton machines Over head crane allows safe quick mold change and handling Project completed prior to six month launch deadline

Energy ConceptSummer Mode

Factory Planning
Maximizing Factory Efficiency

2003 Husky Injection Molding Systems LTD.