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Cost Comparison Pad printing (4cp) vs. I ML (4cp)

What is "value add"?

Higher quality, Greater Flexibility, Faster service, increased functionality.

Even with value add the customer will want reduced margin or lower price.

Let's take the example of pad printing a 6" diameter graphic on an 8" Frisbee compared to In-mold labeling with a 6" diameter graphic on thin film.

General assumptions:

Cost Components of Pad Printing (PP)

Impression cost of pad print inks

Hourly cost of labor

Parts per hour

Percent of Scrap

Cost of plastic part being molded

Rework cost

.048 cents per Frisbee (.012 cents per color)

$8.00

90

5%

$0.50

Solvent wipe 2 minutes

Ink cost + labor per part x scrap rate + labor rate x rework time x scrap rate = basic part cost

The basic part cost is $0.269 for pad printed part.

Cost Components of In-Mold Labeling

Label cost

Hourly molding cost

Molded parts per hour

Increase in mold cycle

Expected percent of scrap

$0.15

$45.00

120 (30 seconds per part)

3 seconds

2%

Scrap rate x piece price + increased molding cycle time + scrap rate x part cost = basic part cost

The basic part cost is $0.1903 for in-mold labeling

Pad Printing Piece cost $0.2693
Less In-mold Piece cost $01903

Savings per part $0.0790