Introduction
In the manufacturing industry, the cost of producing a product includes various components such as raw materials, labor, and overheads. One crucial aspect of the cost is the cost of tooling or molds used to create the parts. Tooling costs can be significant, especially when producing complex parts requiring intricate molds. To minimize the impact of tooling costs on the overall cost of production, manufacturers use a process known as mold cost sharing or mold fee apportionment.
What is Mold Cost Sharing?
Mold cost sharing is a process where the cost of creating a mold is divided among the different parts that will be produced using the mold. This method allows manufacturers to spread the cost of tooling over multiple parts, reducing the per-part cost of production. The cost of the mold is shared based on the number of parts produced, and each part is charged a portion of the total mold cost.
How Does Mold Cost Sharing Work?
Benefits of Mold Cost Sharing
Mold cost sharing has several benefits for manufacturers:
Conclusion
Mold cost sharing is an essential tool for manufacturers looking to reduce their per-part costs and increase their competitiveness. By dividing the cost of creating a mold among the different parts produced using the mold, manufacturers can spread out the cost of tooling, making it more affordable. This method also encourages innovation and improves cash flow, making it a valuable tool for manufacturers in today's competitive market.