Is in-House Blow Moulding
Viable?
Robin Enderby
BMC Controls Ltd
PLASTIC BOTTLES 2005
IMPROVING VALUE, FUNCTION AND PERFORMANCE
15-17 February 2005, Renaissance Hotel, Düsseldorf, Germany
Organised by Applied Market Information Ltd
Is in-House Blow Moulding Viable?
• Definition of “In-house” :
A company that moulds their own bottles to
fill with their own product
Is in-House Blow Moulding Viable?
•
Purpose of this paper:
1. To give prospective “in housers”
more information to make the best
decision for their circumstances
Is in-House Blow Moulding Viable?
•
Purpose of this paper:
2. To help existing “in housers” review
the ongoing feasibility of their
moulding operation
Is in-House Blow Moulding Viable?
•
Purpose of this paper:
3. To help “trade moulders” advise
potential “in housers” make the best
decision
Is in-House Blow Moulding Viable?
• Why does any company want to go in-house
in the first place?
• Because they think that the investment will
yield significant savings
Is in-House Blow Moulding Viable?
• The viability of blow moulding, like any
manufacturing process, is largely dependent
on there being sufficient volume to justify
the investment.
Is in-House Blow Moulding Viable?
Bottle cost breakdown on AT 15D
11%
ammortization
manpower
10%
maintenance
3%
7%
0%
69%
electric power
floor space
resin
Is in-House Blow Moulding Viable?
• Costing figures are often based on 90%
machine utilisation – a figure that is very
hard to achieve by even some of the best
companies
Is in-House Blow Moulding Viable?
• Support is very important
• “You sold me this car so I expect you to
teach me how to drive it, how to maintain it,
and how to change the engine when I want
to.
Is in-House Blow Moulding Viable?
• Companies new to blow moulding should
never buy a used machine, no matter how
good the dealer says it is.
Is in-House Blow Moulding Viable?
Essential equipment
• Blow Moulding machine
•
Mould, die tooling, blow pin, and de-flash
tooling for every bottle
•
Granulator
•
Scrap conveyor
Is in-House Blow Moulding Viable?
Essential equipment
•
Hopper loader/ mixer
•
Bins to hold regrind
•
Raw material storage bins
•
Conveyors
Is in-House Blow Moulding Viable?
Optional equipment
•
Bottle packing machine
•
Leak tester
Is in-House Blow Moulding Viable?
Storage
• Boxes to store bottles in
• Somewhere to put all the boxes
• Fork lift truck
• Pallet trolley
• Strong racking for mould storage
• Bulk silo for material storage?
Is in-House Blow Moulding Viable?
Services
• Chiller/Piping
•
Compressor/Piping
•
Compressed air drier
•
Compressed air chiller
Is in-House Blow Moulding Viable?
•
Serious amount of electrical power
Is in-House Blow Moulding Viable?
•
•
•
People
Training
Workshop facilities for die
cleaning/general maintenance
Is in-House Blow Moulding Viable?
Q.C. Equipment
• Accurate weigh scales near the machine
•
More accurate weigh scales in QC room
•
Top load strength tester/height gauge
Is in-House Blow Moulding Viable?
•
Torque tester
•
Colour matching instrument
•
Wall thickness measuring device
•
Thread gauges
Is in-House Blow Moulding Viable?
Finishing Equipment
•
Flame treatment for print preparation
•
Sleeving machine / printing equipment
•
Labelling machine
Is in-House Blow Moulding Viable?
•
Spare parts for all the above
Is in-House Blow Moulding Viable?
•
Polyethylene
•
Masterbatch
Is in-House Blow Moulding Viable?
• Start by producing “Core Products”
(The long run products)
• This might create problems with suppliers
of remaining products
Is in-House Blow Moulding Viable?
Problems
• Reduced quality
• Unforeseen costs
• Efficiency less that expected
Is in-House Blow Moulding Viable?
Problems
• Shortage of skilled personnel
• Technology becomes dated/obsolete
• Raw material availability and price
Is in-House Blow Moulding Viable?
Problems
• Vulnerability to market demand
Is in-House Blow Moulding Viable?
“Getting out” of In-House blow moulding
• Various solutions to be considered:
• Find ‘hole in the wall partner’
• Sell machines and ‘contract to supply’
back to the trade.
• Contract-out all manufacturing
Is in-House Blow Moulding Viable?
Who got out?
• A.E. Adams, Alida-Gibbs, Bowater, Body Shop,
Bissell,Colgate-Palmolive, Century Oils,
Cheeseborough-Ponds, Diversified Products, Deb
Chemicals, Domestic Liquids, GW Chemicals, Morrises
Oil, Jeyes, Lanstar Coatings, Turtle Wax Johnsons
Wax, Lyons, Thermos, Chad Valley, Rollo, Palitoy,
Nicol, Key Terrain,
• Numerous dairies
Is in-House Blow Moulding Viable?
Who’s in-house?
• Alberto Culver
Boots
• Comma Oil Constance Carol
• Ricoh Reckitt
Sanmex
• Supreme Salt Talbot Chemicals
Is in-House Blow Moulding Viable?
Conclusions
• To be viable there must be sufficient
quantities of containers required to run a
multi-machine plant virtually 24/7/12/365
• Never underestimate the investment
required, or the ongoing investment to keep
the operation viable
Is in-House Blow Moulding Viable?
• Remember the words of a Unilever
manager:
• “We can buy bottles in the UK, with the
quality we expect, at a price we’re prepared
to pay, delivered when we need them”
Is in-House Blow Moulding Viable?
Thank you for your time and patience.
Robin Enderby
BMC Controls Ltd.
Manufacturers of container leak testers, bottle handing automation.
Agents for Moog Servovalves and Control Systems