Improvements to Increase Profitability in Plastic Processing Plants

A common challenge faced by factory managers and site managers is the "structure that makes it difficult to generate profits. Now that there is a limit to the amount of cost reductions that can be achieved by simply cutting costs, what is required isIncreasing Sales and Improving the Workplace at the Same TimeIt is.

This article describes concepts and actionable improvements that can be applied to plastics processing sites to increase plant profitability.

Why is it so hard for factories to make a profit?

The business environment surrounding manufacturing plants is becoming increasingly severe year by year. In addition to the soaring cost of raw materials due to high oil prices, labor and energy costs are also rising steadily. On the other hand, even if the operation rate is increased, there is no immediate direct link to sales,Structural challenges that make it difficult to balance productivity and profitThere are

Therefore, there is a limit to how stable sales and profits can be secured even if only "waste elimination" such as reduction of materials and personnel is carried out. It is necessary to visualize the profit structure of the entire factory, not just the site alone, and clarify where profits are generated and where losses are incurred.

The first step to improving profits is to visualize the profit structure

To improve profits, it is essential to first accurately understand the profit structure. Break down costs and profit margins by product and process,Identify profitable and unprofitable areas.This will help to correctly determine the priorities for improvement.

Particular attention should be paid to taking the wrong improvement measures. For example, cutting labor costs on a production line with poor profit margins will be counterproductive if it leads to a decline in quality. Visualization" of the profit structure enables on-site improvements based on objective data. However, careful consideration should be given when implementing improvement measures.

Profitability improvement strategies that start with increased sales

Profit improvement at factories can be achieved not only by reducing costs, but also by proceeding in parallel with efforts to increase sales themselves, thereby building a more stable profit structure. In this section, we will introduce strategies that start with increasing sales from the perspectives of raising the unit price of products, strengthening the ratio of repeat customers, and acquiring new customers.

Value appeals to increase product unit price

To raise the unit price, it is necessary not only to raise the price, but also to present a value that the customer is willing to accept.

For example,Differentiating factors include high dimensional accuracy based on proprietary technology and the use of environmentally friendly materials.The company can become a "profitable" company. The company will be able to break away from price competition and shift to a highly profitable model.

After-sales service to increase repeat business

Establishing an ongoing relationship, rather than a one-time transaction, increases revenue stability.

Post-delivery follow-up, periodic maintenance proposals, and prompt response to problemsand other after-sales service enhancements will improve customer satisfaction and ultimately boost the repeat customer rate.

Simultaneously increase productivity and profitability through on-site improvements

To improve the profit structure of a factory, it is necessary to simultaneously increase productivity through shop-floor improvements and raise profit margins. For example, automated equipment and process redesign can reduce wasted man-hours and optimize costs.

AnotheWorking to improve product quality makes it easier to raise prices andThe quality of the product will lead to an improvement in profit margins. If you can produce quality that exceeds customer expectations, you can expect to increase repeat business, gain customer trust, and improve competitiveness through the branding effect of high-quality products.

Plastic Processing Plants Face Barriers to Profit Improvement

Rising raw material costs linked to crude oil prices

Since the main raw material for plastic products is derived from petroleum, a sharp rise in crude oil prices immediately leads to higher material costs.Foreign exchange rates and international conditions also have a significant impact.The challenge is that it is difficult to control the price through price negotiations.

High molding loss and defect rate

The high amount of molding loss and the high defect rate are,Forced to take action such as reprocessing or disposal of products.This directly drives up the cost of materials and man-hours. If we do not find out where the cause lies and take action, it could put pressure on management.

Molding machine availability and maintenance issues

Molding machines that break down or malfunction frequently reduce utilization rates and thus act as a disincentive to profit improvement. Also,More frequent inspections and maintenanceThis tends to increase maintenance costs. In addition, it can cause delays in production schedules and lost order opportunities.

Responding to fragmented client requirements and small-lot production of a wide variety of products

As client requirements become more detailed and the need for a wide variety of products in small lots increases, insufficient manpower will result in a failure to respond to these needs, leading to lost opportunities. In order to improve profits, we must be able to respond to clients' detailed requests and small-lot production of a wide variety of products.Need to consider equipment installationIt is.

Measures to be taken by the plastics processing industry to make it profitable

Process improvement to reduce foreign material contamination and dimensional defects

Process control that reduces the occurrence of foreign matter and defective products leads to stable quality, cost reductions, and improved customer satisfaction. Specific measures include,Introduction of sensors to detect foreign material contamination and dimensional defects, as well as equipment suitable for the material to be processedThese include

Reduction of production loss through equipment maintenance and predictive maintenance

Equipment failure not only stops the operation of the production line,Production losses, delivery delays, and loss of customer confidenceThis has adverse effects in many areas, such as It is necessary to implement periodic maintenance and to create mechanisms and systems for preventive and predictive maintenance.

Standardization of skilled work and reduction of training costs

By standardizing skilled work,Reduce the risk of attributionThis can reduce training time and costs. The procedure is generally to first identify the work content and prioritize it for standardization, and then proceed through the creation of manuals and the implementation of training programs.

Value-added environmental responsiveness, including use of recycled materials

How do you create environmentally friendly products using recycled materials, etc., in response to a recycling-oriented society?A major factor in differentiating us from our competitorsThe company will be able to In addition, the company can expect to benefit from cost reductions, stabilized procurement, improved corporate image, and the creation of new business opportunities.

Strategy to expand into in-house product development as well as contract processing

One effective way to secure profits is to develop in-house products by utilizing the technology and know-how cultivated through contract processing. If we can establish a system that allows us to manufacture from materials in-house,Highly profitable business modelThere are high expectations for the realization of the

Stable utilization of high filler material by reviewing mixing performance

In response to the rising cost of raw materials, the use of high filler and recycled materials is increasing,Insufficient kneading performance causes molding defects and yield lossIn many cases, the result is a "no-go" situation. Conventional single-axis extruders are difficult to control degassing and kneading, limiting the ability to stabilize product quality.

The solution to these challenges is,Introduction of twin-screw extruder with excellent kneading and dispersionIt is It is expected to achieve uniform mixing of high-concentration filler, absorption of recycled material variation, and quality stabilization through outgassing, thus realizing cost reduction and quality improvement at the same time.

Equipment improvements make it possible to collectively review multiple cost factors such as material loss, molding loss, and subcontracted processing costs, contributing to structural profit improvement.

Learn more about profit improvement measures that plastic factories can take.

Reduce Quality Complaints and Waste Costs with Resin Degradation Prevention

Resin degradation is an issue that must be addressed as a top priority in plastics plants because it can easily lead directly to quality complaints. In addition to increasing unnecessary costs,Loss of customer confidence and competitivenessThe risks of neglect are immeasurable, including the following. First, understand the mechanisms by which resin deterioration occurs, and take measures to prevent deterioration in advance.

Material processing to reduce molding defects in plastics

It is not only the mold that causes plastic molding defects.In many cases, the raw materials themselves are the cause.The company can improve this situation by reviewing its processing methods. If the percentage of good products improves, material losses will be reduced and operating profit will increase. This section describes material processing methods that are effective in reducing plastic molding defects.

Review of raw material costs for plastics

The price increase of plastic raw materials has become a major topic of discussion as the price of crude oil has skyrocketed.Cost increases have a direct impact on profit margins.Therefore, it cannot be ignored. Nowadays, plastics processing sites have to review their raw material costs. Here we will introduce the factors that cause raw material costs to increase and the measures that can be taken to reduce costs.