Meaning
Mathematical calculation used by injection molders to determine the total manufacturing and logistics cost of producing a single defect-free plastic component. The landed cost per good part formula incorporates material price, cycle time, scrap rate, and shipping fees to show the true cost of production. It helps molders choose between low-cost virgin resins and recycled alternatives that may generate more scrap.
Calculation Method
Summing resin costs, tooling amortization, and energy usage yields the base production cost, which must be divided by the yield of acceptable parts. This landed cost per good part formula highlights the financial impact of even small changes in process scrap rates. High-precision tooling helps keep this metric low.
Resin Impact
Cheaper, non-standard polymers often exhibit variable flow properties that increase cycle times or mold flash defects. Applying the landed cost per good part formula reveals that high-priced, consistent resins can be more economical than cheap materials by minimizing machine downtime. Moulders use this calculation to justify using high-grade virgin resins.
Operational Target
Minimizing reject rates during high-speed runs is the most effective way to lower overall production expenses. This landed cost per good part formula shows that saving pennies on raw material is quickly wiped out if defect rates rise by even a few percentage points, helping production managers focus their efforts on maintaining tool temperature control, stable melt viscosity, and efficient cycle times rather than constantly negotiating for cheaper polymer feedstocks that might cause costly tool wear or extended downtime.