In an attempt to save money, many companies forgo the use of a purging compound, or go with a cheaper option.
However, a cheaper price per pound isn’t necessarily the best way to save. To understand the cost of the purge you’re using, you should measure several factors, including:
- Machine downtime cost
- How much purging compound is required
- The amount of flush material used
- The cost of your scrap, material and labor waste, and rejects
Purging compounds are a valuable investment and can save time and labor when cleaning your injection molding, extruder or blow molding machines. Additionally, purging compounds often provide huge savings and an immediate return on investment. Very little risk is involved with using a purging compound, and the reward – which is savings – continues to add up every time you purge your machines.
Determining how much it costs to purge your plastics processing machines is critical to understanding the value your purging compound provides. Learn more about how to calculate the cost to purge your machines.
Main Variables To Consider
When calculating the cost to purge your machines, consider these four main variables:
- Machine Downtime Cost: Understanding your total machine downtime cost is critical to understanding how well your purging compound is working for your facility. To calculate machine downtime cost, multiply the total downtime (hours) by the budgeted machine running cost.
- Amount Of Purge Material Used And Price: As a plastics processing facility, you likely already know this information. If you don’t, please keep track of the cost of your purging compound and how much you use during each purge.
- Replacement Resin Quantity And Price: As with your purging compound, keep track of how much replacement resin you use and how much it costs.
- Overall Scrap Rates: Poor purging procedures often lead to increased scrap rates, which can be detrimental to your business’s bottom line. Keeping track of your overall scrap rates during the job change (good-part-to-good-part) helps you better understand the effectiveness of your purging compound.
- Labor Cost: An often overlooked cost component of purging is labor. Tracking the true labor costs of purging also helps understand the impact on bottom line. If you have a technician for an hour, and two temps for 15 minutes inspecting parts at startup, what does that purge cost you in terms of labor?
Steps For Calculating The Cost To Purge
To calculate your total cost to purge, follow these three simple steps or use our cost savings calculator:
1. Calculate Total Machine Downtime Cost
Machine downtime (hours) times budgeted machine running cost ($) equals total machine downtime cost ($).
2. Calculate Total Purge Material Cost
[Amount of purge material used (pounds) times the price per pound] plus [replacement resin quantity times the price per pound equals total purge material cost] plus [cost of scrapped parts during job change, until good parts are produced]
3. Total Labor Cost
Total number of labor hours times average cost of each category of labor
4. Total Cost To Purge: Step 1 + Step 2 + Step 3
Add the results from steps one, two, and three to get your total cost to purge.
The steps for calculating your total cost to purge are simple and the benefits are invaluable. Knowing your total cost to purge helps you understand whether your purging compounds are helping or hurting your profitability.
By using the cost savings calculator, your plastics processing company will have a better idea of which purging compound is best for you, and you’ll know which one will save you the most money.
Learn more about improving your profitability with proper purging procedures.
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