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The Hidden Costs of Production: A Cautionary Tale from a Chinese Extrusion Machine Factory

When buying a Plastic Extrusion Machinery, there is “explicit costs” which you pay to your supplier. Meanwhile, there is “hidden cost” which is usually neglected by buyer, that is the breakdown happen to the machine during production. The breakdown may cause by buyer, but it also may cause by seller’s inexperienced assembly technology.

  It will increase buyer’s total cost

A experience shared by my customer’s factory. Their extrusion line equipped with a three-roller calender, crucial for the manufacturing process. The calender’s wall board required drilling holes for screws. However, a critical oversight was made: the holes weren’t cleaned properly, leaving metal shavings and other impurities.

These remnants, seemingly insignificant, led to a significant operational hiccup. During the machine’s operation, the leftover debris damaged the screws and turbine. The aftermath was a costly repair of 2,400 RMB and an operational halt of five days. While the factory’s location in China enabled quick access to local suppliers for repair, this scenario poses a stark warning for international clients without immediate access to such resources. Downtimes could extend, production could lag, and potential client claims for delays could lead to incalculable losses.

How can manufacturers minimize such hidden costs and ensure uninterrupted production, especially in global contexts where immediate technical support might not be available?

The key lies in not just considering the upfront price of equipment and services but also in assessing the potential hidden costs during the production lifecycle. PLM recommend prioritizing suppliers with a proven track record, preferably those with over a decade of experience. This approach, under similar conditions, suggests selecting the most cost-effective provider among those meeting the requisite experience and quality standards. By doing so, manufacturers can reduce the risk of unexpected breakdowns and the associated costs, ensuring a smoother, more efficient production process.

In conclusion, this case from the PP sheet production line is a potent reminder of the importance of thorough maintenance and experienced supplier selection. It highlights that the cheapest option upfront may not always be the most cost-effective in the long run. Manufacturers should consider the entire lifecycle of their equipment and choose suppliers who can provide both quality and reliability, ensuring sustained productivity and profitability.

 

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