Creating a plastic part costing sheet for your manufacturing project is essential for estimating the overall production cost and determining the viability of the project. Here’s a step-by-step guide to help you create a comprehensive costing sheet:
- Gather Part Information: Start by collecting all the necessary information about the plastic part you intend to manufacture. This includes the part’s dimensions, weight, material type, and any specific features or requirements.
- Material Cost: Determine the cost of the raw material required to produce one unit of the plastic part. Obtain material pricing information from suppliers or refer to industry-standard material cost databases.
- Tooling and Mold Costs: If the part requires a custom mold or tooling, include the cost of mold design, fabrication, and any maintenance or refurbishment costs over the projected production volume.
- Labor Cost: Estimate the labor cost involved in the production process. This includes machine operator wages, assembly, quality control, and any additional labor required for post-processing or finishing.
- Overhead Expenses: Factor in overhead expenses such as utilities, rent, insurance, and administrative costs. Divide these costs by the projected production volume to determine the overhead cost per unit.
- Machine Costs: If you are using injection molding or other machinery for production, calculate the depreciation or rental cost of the equipment per unit.
- Scrap and Waste: Account for any potential scrap or waste generated during the manufacturing process. Add the cost of managing and disposing of waste materials.
- Packaging and Shipping: Include the cost of packaging materials and transportation for shipping the finished parts to customers or distributors.
- Prototyping and Testing: If you have conducted prototyping or testing phases, include the cost incurred in this phase in your costing sheet.
- Markup and Profit Margin: Determine the desired profit margin for your project and add an appropriate markup percentage to cover operating expenses and generate a profit.
- Quantity-Based Cost Variations: Consider the cost variations based on the production volume. Generally, larger production runs offer economies of scale, resulting in reduced unit costs.
- Cost Breakdown and Summary: Create a breakdown of all the cost components and provide a summary of the total production cost per unit.
- Cost Comparison: If you are considering different manufacturing methods or suppliers, create multiple costing sheets to compare costs and make an informed decision.
- Review and Validation: Review the costing sheet carefully to ensure accuracy and completeness. Seek input from relevant stakeholders, such as engineers, accountants, and project managers, to validate the cost estimates.
Remember that the accuracy of the costing sheet is critical to making informed decisions about the feasibility and pricing of your plastic part manufacturing project. Regularly update the costing sheet as variables, such as material prices or production volumes, change over time.
Learn how to create a plastic parts cost sheet that will help you estimate the cost of your plastic parts and optimize your manufacturing process.
In manufacturing, accurately estimating the cost of a product is critical. This not only helps you determine the pricing strategy for your products, but also helps you optimize your production process and improve efficiency and profits. It is very useful for plastic parts manufacturers to create a detailed plastic parts cost sheet.
First, you need to gather all the cost information associated with producing the plastic parts. This includes the cost of raw materials, such as the price of plastic pellets or sheets; depreciation and maintenance costs of equipment and tools; labor costs, including worker wages and benefits; and any other indirect costs associated with producing plastic parts, such as energy consumption, Shipping and storage costs, etc.
You then need to allocate these costs to each plastic part. This can be done by calculating the quantity of raw material required for each part and then multiplying by the price of the raw material. For depreciation and maintenance costs for equipment and tools, you can allocate them based on how long the equipment is used and how often it is repaired. For labor costs, you can calculate it based on the hours worked by each worker and the wage rate.
Next, you need to add all the costs together to get the total cost of each plastic part. You can then divide this total cost by the number of parts produced to get the average cost per part.
Finally, you can use this plastic parts cost chart to optimize your production process. For example, if you find that the cost of a certain part is too high, you might consider using cheaper raw materials or improving the production process to reduce the cost. Or, if you find that a certain part is less profitable, you might consider raising its price or increasing its sales to increase profits.
Introduction
If you are planning to manufacture plastic parts for your product, you need to have a clear idea of how much it will cost you. Plastic parts can vary widely in size, shape, complexity, and quality, and each of these factors can affect the cost of production. To help you estimate the cost of your plastic parts and optimize your manufacturing process, you need to create a plastic part costing sheet.
A plastic part costing sheet is a document that lists all the costs involved in producing a plastic part, such as material, tooling, molding, post-processing, overhead, and profit margin. It helps you compare different options and scenarios, and make informed decisions about your design, material selection, tooling strategy, molding method, post-processing techniques, and pricing strategy.
In this article, we will explain what a plastic part costing sheet is, why you need one, and how to create one for your manufacturing project.
What is a plastic part costing sheet?
A plastic part costing sheet is a spreadsheet or a table that breaks down the cost of producing a plastic part into different categories. It typically includes the following categories:
- Material cost: The cost of the raw material used to make the plastic part, such as resin, colorant, filler, etc.
- Tooling cost: The cost of designing and making the mold or the tool that shapes the plastic part.
- Molding cost: The cost of operating the molding machine that injects or forms the plastic part.
- Post-processing cost: The cost of any additional processes that are done after molding, such as trimming, drilling, painting, coating, assembly, etc.
- Overhead cost: The cost of running the manufacturing facility and supporting activities, such as rent, utilities, labor, maintenance, quality control, etc.
- Profit margin: The percentage of profit that the manufacturer adds to the total cost to determine the selling price.
Each category can have subcategories or variables that affect the cost. For example, the material cost can depend on the type and grade of resin, the amount and type of colorant or filler added, the market price and availability of the material, etc. The tooling cost can depend on the complexity and size of the mold or tool, the number of cavities or parts per mold or tool, the material and quality of the mold or tool, etc. The molding cost can depend on the cycle time or production rate of the molding machine, the energy consumption and efficiency of the machine, the labor and maintenance costs involved in operating the machine, etc.
The total cost of producing a plastic part is calculated by adding up all these categories. The unit cost or piece price is calculated by dividing the total cost by the number of parts produced.
Why do you need a plastic part costing sheet?
A plastic part costing sheet is an essential tool for any manufacturer or designer who wants to produce plastic parts. It helps you:
- Estimate the feasibility and profitability of your manufacturing project.
- Compare different design options and choose the best one for your product requirements and budget.
- Compare different material options and choose the best one for your product performance and quality.
- Compare different tooling options and choose the best one for your production volume and schedule.
- Compare different molding options and choose the best one for your production efficiency and flexibility.
- Compare different post-processing options and choose the best one for your product appearance and functionality.
- Compare different pricing options and choose the best one for your market competitiveness and customer satisfaction.
How to create a plastic part costing sheet?
Creating a plastic part costing sheet can be a complex and time-consuming process. It requires a lot of data collection, analysis, and calculation. However, it can be simplified by following these steps:
Step 1: Identify the plastic part specifications
The first step is to identify the specifications of your plastic part, such as:
- Dimensions: The length, width, height, and weight of your part.
- Shape: The geometry, contours, features, and details of your part.
- Tolerance: The allowable variation or deviation from the nominal dimensions or shape of your part.
- Quality: The level of accuracy, precision, and consistency of your part.
- Function: The purpose, use, and performance of your part.
These specifications will help you determine the design, material, tooling, molding, and post-processing requirements of your part.
Step 2: Calculate the material cost
The second step is to calculate the material cost of your part. To do this, you need to:
- Select the type and grade of resin that suits your part specifications and quality standards. You can choose from various types of resins,
such as thermoplastics, thermosets, elastomers, composites,
etc. Each type has different properties, advantages,
and disadvantages. You can also choose from different grades of resins, such as standard, engineering,
or specialty. Each grade has different characteristics, such as strength,
stiffness, flexibility, durability, heat resistance, chemical resistance, etc. - Determine the amount and type of colorant or filler that you want to add to your resin. You can add colorant or filler to change the appearance or performance of your resin. Colorant can change the color or transparency of your resin. Filler can change the density or weight of your resin. You can choose from various types of colorants or fillers, such as pigments, dyes, masterbatches, fibers, glass beads, etc. Each type has different effects, costs, and availability.
- Calculate the material cost per kilogram or pound of your resin, colorant, or filler. You can find the market price and availability of your material from online sources, suppliers, or manufacturers. You can also factor in the transportation, storage, and handling costs of your material.
- Calculate the material cost per part by multiplying the material cost per kilogram or pound by the weight of your part. You can estimate the weight of your part by using online calculators, software, or formulas based on your part dimensions and density.
Step 3: Calculate the tooling cost
The third step is to calculate the tooling cost of your part. To do this, you need to:
- Select the type and size of mold or tool that suits your part specifications and production volume. You can choose from various types of molds or tools, such as injection molds, blow molds, compression molds, extrusion dies, etc. Each type has different capabilities, limitations, and costs. You can also choose from different sizes of molds or tools, such as single-cavity, multi-cavity, family mold, etc. Each size has different production rates, quality levels, and costs.
- Determine the complexity and quality of your mold or tool based on your part shape, tolerance, and quality standards. You can measure the complexity and quality of your mold or tool by using online tools, software, or formulas based on factors such as number of features, details, undercuts, slides, cores, etc. The more complex and high-quality your mold or tool is, the more expensive it will be.
- Calculate the tooling cost per mold or tool by adding up the design cost, material cost, machining cost, testing cost, maintenance cost, etc. You can find the design cost from online sources, software, or consultants. You can find the material cost from online sources, suppliers, or manufacturers. You can find the machining cost from online sources, software, or contractors. You can find the testing cost from online sources, software, or laboratories. You can find the maintenance cost from online sources, software, or service providers.
- Calculate the tooling cost per part by dividing the tooling cost per mold or tool by the number of parts produced by that mold or tool over its lifetime. You can estimate the number of parts produced by a mold or tool by using online calculators, software, or formulas based on factors such as production volume, cycle time
Step 4: Calculate the molding cost.
The molding cost is the amount of money spent on the injection molding process. This includes the cost of the mold, the material, the machine, the labor, and the electricity. The molding cost can be calculated by multiplying the cycle time by the hourly rate of the machine and adding the material cost.
Step 5: Calculate the post-processing cost.
The post-processing cost is the amount of money spent on any additional operations that are required after the molding process. This may include trimming, painting, assembly, packaging, and shipping. The post-processing cost can be calculated by adding up the individual costs of each operation.
Step 6: Calculate the overhead and profit margin.
The overhead is the amount of money spent on the general expenses of running a business, such as rent, utilities, taxes, and insurance. The profit margin is the percentage of revenue that is kept as profit. The overhead and profit margin can be calculated by multiplying the total cost by a certain factor.
Conclusion:
A plastic part costing sheet is a useful tool for plastic part designers to estimate the cost of production and to compare different design alternatives. By following these steps, you can create a plastic part costing sheet for your plastic part project.
