Quantifying Initial Unit Cost Premiums in Split Hardware Sourcing Allocations
Split hardware sourcing increases initial unit costs by 12 to 38 percent through volume tier loss, duplicate tooling, and secondary line qualification.
Tooling Lifecycle Cost
Meaning
Asset longevity and the associated expenses define the total investment required to maintain production capability over several years. The tooling lifecycle cost includes the initial design and fabrication, the routine maintenance, the repair cycles and the eventual replacement of worn molds. Calculating this figure helps a company decide between high quality materials that last for millions of shots and cheaper options for shorter production runs.
Proper care and refurbishment can extend the life of the tools and reduce the overall cost of the product.
Wear Maintenance
Friction and heat slowly degrade the surfaces of a metal mold during every injection cycle. The tooling lifecycle cost accounts for the labor and materials needed to keep the tool within the original dimensional tolerances.
Shot Capacity
Hardened steel tools offer a higher number of cycles before the parts start to show defects. Choosing a more expensive material increases the initial price but lowers the tooling lifecycle cost over the duration of a high volume project.
Financial Amortization
Accounting teams spread the expense of the mold over the total number of parts produced. A complete understanding of the tooling lifecycle cost prevents surprise expenditures when a tool reaches the end of its useful life.