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#066 Initial Cost Structure of Molds

Category : Cost
December17, 2010

The value of a mold is determined by the three factors of "Quality", "Delivery", and "Cost".
Among these, the "Cost" is constituted from initial cost and running cost.
In addition, it is very common that the initial cost is constituted by the following cost constituents.

1. Raw material cost
The cost of purchasing the steel raw material for the mold.
2. Cost of purchasing standard components
The cost of purchasing standard components such as the ejector pin, sprue bush, etc.
3. Cost of purchasing the mold base
The cost of purchasing the mold base, and accessory components, additional machining, etc.
4. Mold design cost
The expenses incurred for designing the mold.
5. Program preparation expenses
The expenses incurred for preparing the NC program.
6. Machining expenses
The expenses incurred for machining operations such as cutting, grinding, electric discharge machining, etc.
7. Surface treatment expenses
The expenses incurred for electroplating, PVD coating, etching, etc.
8. Finishing and assembly expenses
The expenses incurred for polishing, finishing, and assembly.
9. Trial operation expenses
The expenses related to trial injection molding such as the cost of plastic materials, etc.
10. Measurement expenses
The expenses incurred for measuring the dimensions of the mold components or the molded product.
11. Packaging and transportation cost
The expenses incurred for packaging and transporting the molds.
12. Trouble shooting expenses
The expenses incurred in trouble shooting such as design mistakes, machining mistakes, etc.
13. Instruction manual preparation cost
The cost of preparing the instruction manual for the mold and of preparing associated documents.
14. Net profit
The net profit obtained by the company manufacturing the molds.
15. Taxes
Corporate taxes, sales taxes, etc.

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