Is in-House Blow Moulding Viable? Robin Enderby BMC Controls Ltd PLASTIC BOTTLES 2005 IMPROVING...

Is in-House Blow MouldingIs in-House Blow MouldingViable?Viable?

Robin EnderbyBMC Controls Ltd

PLASTIC BOTTLES 2005IMPROVING VALUE, FUNCTION AND PERFORMANCE

15-17 February 2005, Renaissance Hotel, Düsseldorf, Germany Organised by Applied Market Information Ltd

Is in-House Blow Moulding Viable?Is in-House Blow Moulding Viable?

• Definition of “In-house” :

A company that moulds their own bottles to fill with their own product


• Purpose of this paper:

1. To give prospective “in housers” more information to make the best decision for their circumstances



2. To help existing “in housers” review the ongoing feasibility of their moulding operation



3. To help “trade moulders” advise potential “in housers” make the best decision


• Why does any company want to go in-house in the first place?

• Because they think that the investment will yield significant savings


• The viability of blow moulding, like any manufacturing process, is largely dependent on there being sufficient volume to justify the investment.


Bottle cost breakdown on AT 15D

11%

10%

3%

7%

0%

69%

ammortization

manpower

maintenance

electric power

floor space

resin


• Costing figures are often based on 90% machine utilisation – a figure that is very hard to achieve by even some of the best companies


• Support is very important

• “You sold me this car so I expect you to teach me how to drive it, how to maintain it, and how to change the engine when I want to.


• Companies new to blow moulding should never buy a used machine, no matter how good the dealer says it is.


Essential equipment• Blow Moulding machine

• Mould, die tooling, blow pin, and de-flash tooling for every bottle

• Granulator

• Scrap conveyor


Essential equipment

• Hopper loader/ mixer

• Bins to hold regrind

• Raw material storage bins

• Conveyors


Optional equipment

• Bottle packing machine

• Leak tester


Storage• Boxes to store bottles in• Somewhere to put all the boxes• Fork lift truck• Pallet trolley• Strong racking for mould storage• Bulk silo for material storage?


Services• Chiller/Piping

• Compressor/Piping

• Compressed air drier

• Compressed air chiller


• Serious amount of electrical power


• People• Training• Workshop facilities for die

cleaning/general maintenance


Q.C. Equipment• Accurate weigh scales near the machine

• More accurate weigh scales in QC room

• Top load strength tester/height gauge


• Torque tester

• Colour matching instrument

• Wall thickness measuring device

• Thread gauges


Finishing Equipment

• Flame treatment for print preparation

• Sleeving machine / printing equipment

• Labelling machine


• Spare parts for all the above


• Polyethylene

• Masterbatch


• Start by producing “Core Products”

(The long run products)

• This might create problems with suppliers of remaining products


Problems

• Reduced quality

• Unforeseen costs

• Efficiency less that expected


Problems

• Shortage of skilled personnel

• Technology becomes dated/obsolete

• Raw material availability and price


Problems

• Vulnerability to market demand


“Getting out” of In-House blow moulding

• Various solutions to be considered:

• Find ‘hole in the wall partner’

• Sell machines and ‘contract to supply’ back to the trade.

• Contract-out all manufacturing


Who got out?

• A.E. Adams, Alida-Gibbs, Bowater, Body Shop, Bissell,Colgate-Palmolive, Century Oils, Cheeseborough-Ponds, Diversified Products, Deb Chemicals, Domestic Liquids, GW Chemicals, Morrises Oil, Jeyes, Lanstar Coatings, Turtle Wax Johnsons Wax, Lyons, Thermos, Chad Valley, Rollo, Palitoy, Nicol, Key Terrain,

• Numerous dairies


Who’s in-house?• Alberto Culver Boots• Comma Oil Constance Carol• Ricoh Reckitt Sanmex• Supreme Salt Talbot Chemicals


Conclusions• To be viable there must be sufficient

quantities of containers required to run a multi-machine plant virtually 24/7/12/365

• Never underestimate the investment required, or the ongoing investment to keep the operation viable


• Remember the words of a Unilever manager:

• “We can buy bottles in the UK, with the quality we expect, at a price we’re prepared to pay, delivered when we need them”


Thank you for your time and patience.

Robin Enderby

BMC Controls Ltd.Manufacturers of container leak testers, bottle handing automation.

Agents for Moog Servovalves and Control Systems

Is in-House Blow Moulding Viable? Robin Enderby BMC Controls Ltd PLASTIC BOTTLES 2005 IMPROVING...

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