EPP Corporation

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2010-02-25T10:58:00.001-08:00

EPP's Supply Chain Management System

2010-01-20T08:11:00.000-08:00

Over the past fifteen years EPP Corporation has developed a proven supply chain management system that produces maximum savings for customers. The system works as follows:

The buyer provides drawings for all plastic machined parts that will be needed for their production over a 12-month period and gives a rough estimate of annual quantity. The quantity is not set in stone, but is necessary as a benchmark.

EPP evaluates all the parts together as one requirement. Material needs are combined and submitted to the material vendor. The material vendor is advised that the material will be released as needed and is expected to hold the price for one year. In the end, materials saving can exceed 20%.

Production costs are evaluated next, and reduced to accommodate efficiency improvement expectations. Parts will be scheduled and run when similar components are being produced in order to save on tooling changes. Also, machining time is often reduced each time a repeat part is run. EPP plans for these improvements and calculates the 10-20% cost savings into the estimate.

After the annual purchase order is placed for all the parts, the only other commitment for the customer is a delivery release forecast. A 12-week forecast that updates each week is ideal. Many customers simply forecast a monthly or weekly release and adjust the quantity as needed.

Scheduled releases minimize excess inventory. EPP holds ample inventory in the pipeline in case of a “spike” in need driven by unusual requirements.

All parts are manufactured with strict quality standards guided by ISO procedures, SPC, and customer inspection protocol to ensure all critical dimensions are addressed. Along with the promise of dock to stock quality, the customer has the choice of receiving first article inspection reports, sample inspection reports, and certificates of material compliance for every release. This eliminates cost of incoming inspection by the customer.

There is no question that supply chain management is a paradigm shift. However if a company does the math, the pay back is enormous. The supply chain management system used by EPP accomplishes a low cost overall cost with the quality assurance and delivery flexibility provided by US manufacturing. Contact us to realize your 2010 savings today!

Common Unnecessary Costs: Inspection

2010-01-20T08:04:00.000-08:00

The incoming inspection process incurs additional costs. The inspection department ordinarily inspects each shipment received. Quality inspectors are well paid professionals, and each inspection can take anywhere from a few minutes to several hours depending on the complexity of the part. Assuming that a normal part takes about an hour, the average cost could run $80-100. Add to that cost the time the parts are in inventory waiting to be inspected which could be a day or a week. That represents additional working capital wasted.

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Common Unnecessary Costs: Inventory

2010-01-20T08:02:00.000-08:00

The conventional purchasing system incurs unnecessary inventory costs. Most companies purchase 3-6 months supply per order. This is inventory which sits on the shelf waiting to be assembled into a billable sale. Depending on the cost of money, this inventory can cost ½% / month to 1% per month and can translate to several hundred to thousands of dollars of cost that is sitting on the shelf. That is a waste of working capital and profit.

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Common Unnecessary Costs: Unit Cost

2010-01-20T07:59:00.000-08:00

Unit cost is inflated by traditional purchasing methods because most vendors evaluating a request for quote are unsure how the order will be placed. They wonder if the order will be a one-time order, whether it will be the only order for this part this year, when the order will be placed and what the schedule will be. If they need raw material to produce the part, the material needs on the quote are based on the quoted quantity only and, because of the uncertainty, will represent a higher cost. Uncertainty and low volume can add 15-20% or more in the unit cost.

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Common Unnecessary Costs: Administrative Costs

2010-01-20T07:55:00.000-08:00

The first unnecessary cost associated with traditional purchasing method is the cost of soliciting the quote and the analysis of the information. The admin time to issue the quote, phone, fax or email the request and collect the numbers can range from $15-50 per part depending on the company over head which can result in a total cost of $45-150 to solicit three bids. The cost is multiplied by the number of times per year, which can be 2-3 times. That's $135-450 annual cost per part before an order is placed.

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How to Save 20% on Plastic Machined Parts in 2010

2010-01-20T06:39:00.000-08:00

Current purchasing methods evaluated

Traditionally, buyers send requests for quote to three vendors each time a requirement for low volume components presents itself. The vendor then provides a quote on the best price in several quantities with their best delivery. After all quotes are evaluated, purchase orders are placed with the lowest bidder. Ironically, this process is the most expensive way to purchase components, particularly for recurring, smaller quantity parts requirements.

The traditional method incurs unnecessary costs in the following key areas:

The most cost effective purchasing method
Over the past fifteen years EPP Corporation has developed a proven supply chain management system that produces maximum savings for customers. If you want more details on how to save 20% on your plastic machined parts using EPP’s system, click here!

The Math

Avg. Cost Discreet Quote............................

$300/Part/ per year

Avg. Cost Discreet PO................................

Component cost + 20%

Additional Production Cost...........................

Component cost + 15%

Cost of Excess Inventory.............................

Cost of Money (interest expense %) x Component Cost x Inventory Days

Additional Cost of Material...........................

15% Component Cost

Total............................................................

Significant Savings

Low Cost Solution for New Product Development in a Down Economy

2009-08-10T06:32:00.000-07:00

New product development teams nationwide are frustrated with corporate cost cutting and lack of capital for their R&D plans. Valuable projects are put on hold because R&D budgets cannot cover the expensive introductory costs of new tooling and initial manufacturing of new designs. In today's economic environment, corporate cost cutting is needed to help companies survive the recession. However, if companies can develop new products that provide value at today's price levels, they will emerge from this recession well ahead of the competition.

Many companies are searching for ways to move new product development projects forward without breaking the bank on initial investments. Research and development, prototypes, and pilot run quantities have to be completed with very minimal investment and without compromising flexibility of quantity and design.

Smart companies have employed strategies to enhance their new product development. A good example lies in companies manufacturing products that contain plastic parts. If projects have plastic components, then the cost of tooling can be a huge obstacle. Tooling and molds can cost tens of thousands of dollars. The solution: have the plastic parts machined. Prototypes as well as the first few years of production quantities can be produced for a fraction of the cost.

Machined plastic parts include little or no tooling charges, and can be delivered in two weeks. While molding requires full commitment to a part’s design, design changes to machined parts cost absolutely nothing. Request a Quote from a quality plastic machining vendor for a fast, cost-effective solution for new product development and launches.

Contact EPP Corporation now to see how plastic machining can help your new product hit the market and put your company ahead of the game. Call (847) 952-8400 or email sales@eppcorp.com

Selecting a Plastic Machining Vendor: Looking for the Best

2009-07-28T05:41:00.000-07:00

Selection of a truly qualified vendor is extremely important in today's business environment. The time it takes to ask the right questions will pay big dividends - helping you obtain high quality machined plastic parts. And even though the rules for service and quality seem to be continually evolving, getting the best part at the lowest possible price is still the golden rule of purchasing.

If you're looking for a plastic machining supplier, don't settle for anything less than the best. Request a Quote from EPP Corporation today.

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Selecting a Plastic Machining Vendor: Equipment

2009-07-21T09:56:00.000-07:00

Ask about the type of equipment the potential vendor uses. The well-equipped plastic machining vendor will look pretty much like a metal machining shop, but the bona fide specialist will have equipment that has been adjusted or re-built expressly for machining plastic material. The right equipment will machine plastic using the correct speeds, feeds and tooling, and won't pose the threat of contamination faced when metal-machining equipment is utilized. The right equipment will also insure higher quality parts with better finishes and less chance of chips, burrs and other imperfections.

To talk to an expert about plastic machining equipment, call (847) 952-8400 or email sales@eppcorp.com

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Selecting a Plastic Machining Vendor: Quality & Price

2009-06-22T07:10:00.000-07:00

Quality, of course, is directly related to price. Make sure the vendors you interview can provide the highest quality part at the lowest price. Plastic machining vendors can keep errors to a minimum if they are highly process driven, are ISO Certified, use documented SPC procedures, and own the proper inspection equipment such as CMM or video inspection systems. The company with the fewest errors will produce the highest quality and at the lowest cost.

Make sure the supplier is familiar with each machining process you need for your application, as well as with the specific plastic material you will be using. Experience, more than anything else, will help make sure a supplier offers you the most cost-effective part with the best quality.

If you'd like to see how a process driven, high quality machining vendor compares to your current supplier, Request a Quote from EPP Corporation.

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Selecting a Plastic Machining Vendor: Purchasing Practices

2009-06-17T06:23:00.000-07:00

Just as a metal machine shop is unlikely to have the material knowledge you need, neither are they going to be able to purchase plastics in large enough quantities to provide you with the best price.

Likewise, find out if the plastic machining vendor candidates you are considering can purchase materials directly from material manufacturer. If they rely on plastic distributors for materials, make sure their vendors are up on the latest material technology. Plastic technology is constantly changing with new materials introduced all the time.

One of your goals should be to make sure that your plastic machining firm's materials purchasing practices are as good as yours.

To find out more about EPP Corporation's purchasing practices, call us at (847) 952-8400 or email sales@eppcorp.com

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Selecting a Plastic Machining Vendor: Material Knowledge

2009-06-12T06:54:00.000-07:00

Quiz potential vendors on their knowledge of various materials and applications. Ask them to share the information they have from their material manufacturers. Do they have any property charts or plastic material handbooks to give you? Specialists in plastic machining should have a wealth of up-to-date information.

Material knowledge is a critical area. Good plastic machining firms must be willing to educate you before you finalize your choices, and help you find the best material for your application.

If you need assistance selecting a plastic material for your current project, EPP Corporation is happy to help! Email sales@eppcorp.com or call an engineer at (847) 952-8400.

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How to Select the Correct Plastic Machining Vendor

2009-06-12T06:43:00.001-07:00

Not all plastic machining vendors are equipped to offer all parts. Others may not be able to give you the best prices. The following guidelines can help you locate a fully-qualified, cost effective plastic machining specialist:

Be sure to ask potential vendors how they comply with these guidelines.

If you have plastic machined parts you want quoted, contact EPP Corporation:
sales@eppcorp.com
RFQ Website

Or contact Nick Cosentino by phone (847) 952-8400.

Should I Use a Metal Machining Company to Produce My Plastic Machined Parts?

2009-05-13T14:20:00.000-07:00

Engineers and buyers often reach out to metal machining companies to produce plastic machined parts, thinking, "They use the same manufacturing processes, don't they? Does it really matter?"

It does matter. If you've wondered whether you should have a metal machinist produce your plastic parts, The Short Answer Is - No, You Should Not.

Here's why:

Cutting fluids for each material are crucial: Equipment used to machine metal - even if only used for metal occasionally - can contaminate parts with oil-based cutting fluids. Many plastics are also very sensitive to petroleum based cutting fluids and will degrade if they come into contact with these fluids. Additionally, many plastics are hydroscopic and will absorb the cutting oils. If the parts are being manufactured for FDA-approved uses or medical applications, they will not meet standards.

Metal fragments contaminate plastic parts: It is difficult to adequately clean a machine that has been working on metals, especially if it has been working on stainless steel. This can lead to another contamination problem. If the plastic material is soft, residual metal fragments can become embedded in the parts.

Metal shops are experts in metal, not plastic: Metal machining companies rarely have any in-depth knowledge of plastic materials, or more specifically, which material to use in an application. Plastic machinists know what plastics are best for any function, and can produce the part you need without the "trial-and-error" processes a metal machinist would use. A good plastic machining firm will have the material knowledge and the right machining processes to consistently give you the highest quality parts.

If you need plastic machined parts, be sure to use a plastic machining company. Subscribe to this blog to learn more about designing and manufacturing plastic machined parts. Our next blog will be "How to Select the Correct Machining Vendor." Stay tuned!

If you've got plastic machined components, EPP Corporation can help. Request a Quote Here

Custom Plastic Parts: Molding vs Machining

2009-04-23T06:53:00.000-07:00

Our blog is intended to assist anyone seeking information on plastic machined parts. You might have a problem with your current parts, you might be designing a new component, or maybe you don’t even know if you need machined plastic. Whatever your situation, EPP Corporation is here to help. If you have any questions, ask!

Today we will help you answer the most common question about production of a plastic component: “Should I machine or mold this part?”

The two major factors needed to reach your conclusion are quantity of parts and level of dimensional tolerance. As a general rule, you should consider plastic machining when lower volumes are needed or tighter tolerances on the dimensions are needed - or both.

Quantity of parts is significant because of the tool cost of a molded part. If you are injection molding your part, the molding tool will typically cost several thousand dollars and tooling for complex parts can cost hundreds of thousands of dollars. Tool costs can make injection molding unfeasible for a low volume run.

Quantities between 100 and 1,000 - on some parts even up to 5,000 - are usually good candidates for conventional or milled plastic machining. Screw machining of plastics can be practical and cost effective from 500 pieces all the way up to 100,000 pieces, or more.

Tolerance is a factor because machined parts typically can be produced at a tighter tolerance than molded parts. Each plastic material behaves differently, but you can generally achieve tolerances +/- .005” for molded parts. Plastic machined parts can be produced +/- .001” or better depending on the material and design. This is why critically precise industries – like medical devices, aerospace, fluid power, telecommunications, and many others – have turned to machined plastic.

One last advantage to machining is flexibility of design. Once an injection mold has been produced, it can create only that design. Any modification to the design requires expensive changes in the mold. Design changes to a plastic machined part are immediate and have virtually no impact on tooling costs. Until a part design is unquestionably perfect, injection molding should be avoided.

If you have any questions about plastic machining, contact me by email or Twitter.

Nick Cosentino
ncosentino@eppcorp.com
Twitter

About EPP Corporation

2009-04-20T08:51:00.000-07:00

EPP/Engineered Plastic Products Corporation has over 30 years of experience manufacturing precision custom machined plastic components in our ISO 9001:2008 certified facility. Our knowledgeable staff can save you time and money by offering expert advice during the design stages. If you need custom plastic parts, watch this slide show to learn how EPP Corporation can help.

Engineered Plastic Products Corporation

View more OpenOffice presentations from EPPCorporation.

EPP Corp has extensively served many critical industries including: Medical, Aerospace, Military, Fluid/Pneumatic, and Instrumentation. If you have a need for custom machined plastic parts, we can help! Contact sales@eppcorp.com to request a quote, or to find out about our free Design Guide and Plastic Properties Handbook.

We're always looking for ways to serve your plastic machining needs. If you have questions about anything from design to delivery, ask! Stay tuned...we'll be posting valuable advice right here on our blog.