Application of Recycled Material Management Software for a Plastic Injection Molding Company

1.Customer Information

• Industry: Plastic Injection Molding
• Scale: Over 1,000 workers
• Machinery: 200 machines
• Molds: 150 molds

2. Challenges

Plastic Material Formulation in Production

As a large entity in plastic injection molding, the company faced challenges with formulating plastic material blends. Key issues included:

– Managing Recycled Plastic Inventory:

• • • During production, secondary products and by-products can be reused for other products. However, the more recycled plastic is accumulated, the higher the costs for processing it before reuse. Additionally, inadequate management of recycled plastic inventory often led to miscalculated blend formulas, causing frequent losses for the company.

– Recycled Plastic Percentage in Products:

1. 1. • Each product contains a specific percentage of recycled plastic. If the percentage is too high or too low, it impacts product quality. However, if the proportion of virgin plastic is too high, it increases the product’s cost.

– Limitations of Excel in Production Management:

• The company was using Excel to manage recycled plastic inventory. However, delays in updating data resulted in wasted time and inefficiencies in management.

The company suffered losses due to inaccurate product costing. They noticed a high amount of recycled plastic and, as a result, incorporated a high percentage of recycled plastic in the plastic blending formula. However, in reality, the stock of recycled plastic was low, leading to the need to compensate with virgin plastic, which increased production costs and resulted in losses for the company.

3. IVS Solution

Based on the challenges and requirements of the client, IVS developed and implemented a handheld terminal solution combined with inventory management software with the following key features:

3.1 Management of Raw Materials (Recycled and Virgin Plastic):

• The system allows users to manage each type of material by specific location, enabling accurate management of recycled plastic quantities at each machine during production.

3.2 Automatic Material Requirement Planning (MRP):

• • Bill of Materials (BOM) Management:
    • The system allows users to set up blend formulas and manage the Bill of Materials (BOM) corresponding to each fixed finished product.
    • In cases where recycled or virgin plastic is insufficient, the system will suggest alternative materials.
  • Material Requirement Calculation:

• • • When users enter production requirements into the system, it automatically calculates the required amount of materials. The necessary material information is already set up in the Bill of Materials (BOM).
    • Users can choose to calculate the required material quantities with or without stock checking. If the user opts to check the stock, the system will review all areas with available material stock for calculation.
    • The system calculates and suggests the required material quantities based on daily production results and the amount of recycled plastic generated. This information is displayed in the production directive.

3.3 Handheld Device Application for Material Management:

• Material mismatch alert:
  • Before adding materials to the machine, users can use the handheld device to verify the correct material. If incorrect, the system will alert the user to recheck.
• Production result recording:
  • The handheld device allows users to log production results, with the system using this data to calculate material consumption and recycled plastic generated during production.

4. Achieved Results

4.1 Eliminated Excel Errors:

• • The system accurately calculates material requirements, minimizing errors from Excel use and optimizing the recycling process, thereby reducing inventory.

4.2 Fast and Accurate Information:

• • Quickly record information
  • Eliminate errors when selecting the wrong type of plastic or using an incorrect plastic quantity as specified.

4.3 Reduced Labor Costs:

• • The system performs automatic calculations and real-time recording, reducing the need for data entry into Excel.
  • It decreases labor costs by eliminating the need for daily manual material calculations.

4.4 Cost Savings:

• • Minimizes the cost of storage by ensuring that the recycled plastic is fully utilized.
  • Accurately calculates material quantities, reducing the use of virgin plastic and thereby lowering material costs.

4.5 Limited Stock Shortages:

• • The system ensures a safe inventory level, reducing stock shortages.

5. Conclusion

The implementation of IVS’s production and delivery management software provided significant benefits to the plastic injection molding company. The solution optimized production processes, minimized errors, and saved costs, enhancing operational efficiency and better meeting customer demands.