Production Efficiency vs. Adaptability – Offering value with flexibility

The traditional model for production has been to get maximum productivity from capital equipment, and to run capacity as close to maximum as possible.  The rubber and plastics industry is no exception to this traditional norm, but that norm is changing in favor of a more adaptable model that is more closely aligned with today’s market.  Real Seal has adopted such a model, running capacity no higher than 70% before bringing in new capital equipment, and reducing the average amortization cost for tools more than 50% over the last 10 years.

The sales cycle of industrial products has shortened significantly over the last decade, and in some cases has been reduced by more than ½.  This is driven largely by international competition, and a generally more innovative market which is empowered by the blistering pace of technology.  Industrial products from valve systems to pumps are being reengineered and updated to meet international demands, and products are being “sub categorized” into smaller, more succinct market segments in order to compete globally.  The days of American OEM’s offering simple chocolate and vanilla flavored products are long gone – sub markets to satisfy specifically targeted cultures and consumer groups are the driving force for American industry today, and the engineering required to meet these specific needs is more detailed and complex than ever.

Real Seal has adopted a production model to follow this trend.  Real Seal utilizes a modular tooling system for injection molding, where most tools are fabricated with inserts which are retrofitted into existing mold bases, which are optimized for the size and tonnage of the machine they are mounted in.  These inserts are also standardized, which allows for a more economical baseline for tooling costs.  The amount of time and effort required to change out inserts is also a fraction of the time necessary to change out a dedicated mold, saving time and labor.  Although the price per individual part is normally slightly higher than the dedicated molds due to cycle time, the dedicated molds are so much more expensive that the difference in price isn’t enough to recoup the initial tooling through the life of the project.  Our experience has been that product geometry changes through the life of the project, so the low amortization tooling cost allows for greater flexibility through the life of the project, keeps overall costs to a minimum, and allows for quick and adaptable changes in production scheduling.

The traditional approach to tooling normally means more complex setup time for cycle optimization.  This is worth the time and expense if the production run is to be for an extended period (many days into weeks), but in today’s market, these kind of production runs are becoming more the exception than the rule.  Manufacturers who can adapt to the more fragmented and dynamic demands of the market have a distinct advantage, even with a higher part cost.  Real Seal keeps capacity constraints buffered, amortization costs low, and response/adaptability to customer demand at its maximum level in order to compete in today’s dynamic market.

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