CASE STUDY REPORT FOR DISPOSABLE SYRINGE PLANT

 

1.         COST IMPACT FACTORS

 In investment of disposable syringe production project the key cost impact factor depends on the quantity of installed injection molding machines for barrel, plunger and cap, which enables to determine  a production capacity of syringes for a planned factory.

But, number of injection molding machines to be installed should be subject to how many types of syringes, i.e., 3cc, 5cc, 10cc, 15cc or 20cc, etc.  It is because to produce more one type of syringes requires 3 molds for barrel, plunger and gasket and a printing machine.  Another important factor is determine which components among necessary components first begin to produce  because more components cost more. In initial stage the production of needle assembly is not  feasible and outsourcing from a supplier may mitigate any risks on investment. 

 

In the end, the estimated investment cost significantly varies according to the planned number of syringe type to be produced. It much impacts to investment cost. Therefore, the number of syringe types to be produced should be decided first by careful market investigation.

 

On the contrary, less type of syringes may result in difficulty in market access.  In general the most saleable types in the markets are 3cc and 5cc in Korea, but it should be subject to your market situation and market demand.  The base scheme is proposed for minimum investment as follows; type of syringe : 3cc  1.5 million,  5cc  1.5 million (total of 3 million syringes production)

 

2.        CASE STUDIES

              Three project schemes below are analyzed and presented for your minimum investment, speedy implementation, and ultimately a high return on your investment.  Criteria ; injection molding machine operation is based on;

1-     Injection molding machine works for 24 hours a day and 25 days per month.

2-     One machine can produce barrel, plunger and gasket simultaneously by only changing corresponding mold. However, frequent mold changes may result in more production loss.

 2.1       CASE-1 

              ASSUMPTION :

              1- type of syringe : 3cc and 5cc

              2- installed injection molding machine : 1 set            

              3- working days : 25 days per month

              4- injection method : two type of syringes(3cc and 5cc) are produced.

 

                             ESTIMATED SYRINGES OF PRODUCTION 

Injection Molding M/C

Components

Working Days

Production of Syringe

3cc

5cc

Injection Molding M/C One set Installed

Barrel

5 days for 3cc

5 days for 5cc

600,000 pcs

600,000 pcs

Plunger

5 days for 3cc

5 days for 5cc

600,000 pcs

600,000 pcs

Gasket

2.5days for 3cc

2.5days for 5cc

600,000 pcs

600,000 pcs

Total-Syringe Production

25 days

600,000 pcs

600,000 pcs

  Cost Impact

less $ 100,000 against Base Case

Note : by frequent changes of mold the production efficiency may decrease and material loss may increase.

 

2.2            CASE-2

              ASSUMPTION

              1- type of syringe : 3cc and 5cc

              2- installed injection molding machine : 2 sets 

              3- working days : 25 days per month

              4- injection method : two types of syringes(3cc and 5cc) are produced.

  

                                ESTIMATED SYRINGES OF PRODUCTION 

Injection Molding M/C

Components

Working Days

Production of Syringe

3cc

5cc

Injection Molding M/C Two sets Installed

Barrel

10 days for 3cc

10 days for 5cc

1,200,000 pcs

1,200,000 pcs

Plunger

10 days for 3cc

10 days for 5cc

1,200,000 pcs

1,200,000 pcs

Gasket

5days for 3cc

5days for 5cc

1,200,000 pcs

1,200,000 pcs

Total-Syringe Production

25 days

1,200,000 pcs

1,200,000 pcs

  Cost Impact

less $ 60,000 against Base Case

Note : by frequent changes of mold the production efficiency may decrease and material loss may increase.

 

2.3        CASE-3 

             ASSUMPTION :

             1- type of syringe : 3cc or 5cc

             2- installed injection molding machine : 1 set 

             3- working days : 25 days per month

             4- injection method : one type of syringes(3cc or 5cc) is produced.

 

                                 ESTIMATED SYRINGES OF PRODUCTION 

Injection Molding M/C

Components

Working Days

Production of Syringe

3cc

5cc

Injection Molding M/C One set Installed

Barrel

10 days for 3cc or 5cc

1,200,000 pcs

1,200,000 pcs

Plunger

10 days for 3cc or 5cc

1,200,000 pcs

1,200,000 pcs

Gasket

5 days for 3cc or 5cc

1,200,000 pcs

1,200,000 pcs

Total-Syringe Production

25 days

1,200,000 pcs

1,200,000 pcs

  Cost Impact

less $ 260,000 against Base Case

Note : by frequent changes of mold the production efficiency may decrease and material loss may increase.

 

2.4        BASE PROPOSAL 

             1- type of syringe : 3cc and 5cc

             2- installed injection molding machine : 3 sets   

             3- working days : 25 days per month

             4- injection method : one type of syringes(3cc or 5cc) is exclusively produced.

 

                                  ESTIMATED SYRINGES OF PRODUCTION 

Injection Molding M/C

Components

Working Days

Production of Syringe

3cc

5cc

Injection Molding M/C One set Installed

Barrel

25 days for 3cc

25 days for 5cc

1,500,000 pcs

1,500,000 pcs

1,500,000 pcs

1,500,000 pcs

Plunger

25 days for 3cc

25 days for 5cc

1,500,000 pcs

1,500,000 pcs

1,500,000 pcs

1,500,000 pcs

Gasket

12 days for 3cc

12 days for 5cc

1,500,000 pcs

1,500,000 pcs

1,500,000 pcs

1,500,000 pcs

Total-Syringe Production

25 days

1,500,000 pcs

1,500,000 pcs

 Cost Impact

NONE

Note : exclusive injection molding machine for each component is installed and increase production reliability against failure of machine.

 

2.4          CASE STUDY ANALYSIS

 

 

BASE

CASE-1

CASE-2

CASE-3

Investment assumed

~ US $ 800,000

~ US $ 700,000

~ US $ 740,000

~ US $ 540,000

Production

3 million pcs

1.2 million pcs

2.4 million pcs

1.2 million pcs

Syringe Types

3cc-1.5 million

5cc-1.5 million

3cc- 0.6 million

5cc- 0.6 million

3cc-1.2 million  5cc-1.2 million

3cc-1.2 million or 5cc-1.2 million

Injection Molding M/C

3 sets installed

1 set installed

2 sets installed

1 set installed

Production

100%

40%

80%

40%

Type of Syringe

2 types(3cc/5cc)

2 types(3cc/5cc)

2 type(3 cc/ 5cc)

1 type(3 or 5cc)

Market Access

Easier due to two types of syringes

Easier due to two types of syringes

Easier due to two types of syringes

Limited due to one type of syringe

Future Expansion

Easy

Easy

Easy

Easy

Production Efficiency

High by exclusive machine

Lowest due to frequent mold changes

Low due to frequent mold changes

Lower due to frequent mold changes

Material Loss

Lower by exclusive machine

Highest due to frequent mold changes

Low due to frequent mold changes

Higher due to frequent mold changes

Mold Changes

Base

6 times

3 times

3 times

Recommendation

Base

Good

Better

Poor

 

 

3.        RECOMMENDATIONS

 

As illustrated in the above section 2.4, three project schemes are analyzed, however, due to lack of market demand the further precise case study is not advisable.

 

Nevertheless, for achieving larger production capacity in terms of less investment CASE-2 is preferred. It is because one type of syringe production is very difficult to comply with market requirement and at least two types of syringes are necessary for easy market access at beginning stage.  Although CASE-1 is one of good alternatives in case of less allowable budget, however, it is no big difference in investment in comparison to half production capacity of syringe-CASE-2.

 

4.        FURTHER TECHNICAL DATA  >>>  REFER TO

 

           1) Capacity Calculation

              2) Investment Scheme

              3) Production Process

 

5.        OUR ROLES

 

            We always are ready to provide you with machinery supply and associated services you want us to do in collaboration with qualified and reliable manufacturers concerned.