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.