KV Patri, Mgmt of Tech. Inn., Case Study: Electrical IMM for HK 1 Quest for New Technology by Hong Kong’s Plastic Injection Molding Machine Manufacturers A Case Study

KV Patri, Mgmt of Tech. Inn., Case Study: Electrical IMM for HK 2 Answers to Self-Test 1 1. d 2. d 3. b 4. a 5. b 6. a 7. a 8. a 9. d 10. d

KV Patri, Mgmt of Tech. Inn., Case Study: Electrical IMM for HK 3

4 The Industry Support Fund Project Goal: Development of an all electric 100 ton IMM prototype. Duration: 2 years Managers: HK Productivity Council and HK Plastic Machine Manufacturers’ Association (representing 30 HK IMM manufacturers) Monitor: Prof. K.V. Patri

KV Patri, Mgmt of Tech. Inn., Case Study: Electrical IMM for HK 5 HKPC has knowledge and experience of advanced manufacturing technologies like CAD, CAM, and CIM. HKPMA has IMM market knowledge and knows how to make IMM. Knowledge of electric drives is missing. Hence a Technology Provider is needed. A one week trip was made to Japan (Nisso, and Moog) and Germany (Indramat, Bosch, and Parker).

KV Patri, Mgmt of Tech. Inn., Case Study: Electrical IMM for HK 6 Profile of a Multi National Company (MNC) : Bosch (1998) sales: DM 50 B (250 billion HK$). % growth in sales over last year: 7.4% Foreign share of sales: 65% Employees: 188,017 (94,415 in Germany) 1998 capital expenditure: 7.5% of sales R&D Expenditure: 6.9% 0f sales Net income: DM 0.85 B

KV Patri, Mgmt of Tech. Inn., Case Study: Electrical IMM for HK 7 Based on the insights gained through these visits, a tender specification will be drawn up over the next 3 weeks. Potential technology providers will be given one month to respond to the tender invitation. The technology provider will be selected on the basis of quoted price, the technological contents of the offer, and the ability of the provider to deliver the promised technologies and services.

KV Patri, Mgmt of Tech. Inn., Case Study: Electrical IMM for HK 8 HK IMM Market Analysis World production of IMM is of the order of 40,000 machines per year. Till a few years ago, HK, Japan, and Germany had a 1/3 share each of the market. HK had focused on low end machines whereas Japan and Germany focused on high end machines. Thus, HK had virtual monopoly on its market segment.

KV Patri, Mgmt of Tech. Inn., Case Study: Electrical IMM for HK 9 A large proportion of Japanese and German production was directed at the respective domestic markets. Much of HK market is export oriented. HK machines are in general 2 to 3 times less expensive than machines of corresponding size and sophistication from Japan and Germany. Much of HK IMM production is done in the mainland.

KV Patri, Mgmt of Tech. Inn., Case Study: Electrical IMM for HK 10 A few years, low end IMM started being produced in the mainland. The present production of mainland is comparable to that by HK manufacturers. Mainland machines are usually 20-30% less expensive than corresponding HK machines. Thus, HK’s market share is being threatened. It needs to move up-market and start competing with up-market producers like Japan and Germany.

KV Patri, Mgmt of Tech. Inn., Case Study: Electrical IMM for HK 11 Injection Molding Machine Drive Technologies A. Fixed delivery hydraulic pump, proportional control valve, constant pressure relief valve. B. Fixed delivery hydraulic pump, proportional 3-way pressure/flow (P/Q)- control valve. C. Same as B but with electrical screw drive. D. Variable delivery hydraulic pump with load sensing.

KV Patri, Mgmt of Tech. Inn., Case Study: Electrical IMM for HK 12 E. Variable delivery hydraulic pump with electronic pressure and flow control. F. Same as E but with electrical screw drive. G. Full electric machine, i.e. charging, injection, clamping as well as ejection are all electrically driven. (The above following chart is based on data collected with 80 ton IMM, screw diameter 45 mm, shot weight g, cycle time 25 s. Source: An Italian journal. H refers to theoretical minimum energy consumption. )

KV Patri, Mgmt of Tech. Inn., Case Study: Electrical IMM for HK 13 All hydraulic IMM drive Advantages Low capital investment. High injection speed High hydraulic motor torque at low speed, high tonnage.

KV Patri, Mgmt of Tech. Inn., Case Study: Electrical IMM for HK 14 All hydraulic IMM drive Disadvantages High noise. Oil environmentally unfriendly. High energy consumption. Less sophisticated control

KV Patri, Mgmt of Tech. Inn., Case Study: Electrical IMM for HK 15 Hydraulic IMM drive with electrical servo drive Parallel movements without additional costs. Lower energy consumption. Lower noise.

KV Patri, Mgmt of Tech. Inn., Case Study: Electrical IMM for HK 16 All electric drives for IMM High process stability. High repeatability.. More sophisticated control possible. Low startup “trash”. Quicker set up for new products. Low noise. Low energy consumption. Environmentally clean.

KV Patri, Mgmt of Tech. Inn., Case Study: Electrical IMM for HK 17

KV Patri, Mgmt of Tech. Inn., Case Study: Electrical IMM for HK 18 Interim E-IMM Technology Partner Selection Criteria (arrived at through group discussion)

KV Patri, Mgmt of Tech. Inn., Case Study: Electrical IMM for HK 19 Weighted potential partner rating (mechanically calculated)

KV Patri, Mgmt of Tech. Inn., Case Study: Electrical IMM for HK 20 Weighted potential partner rating (mechanical calculation)