This presentation is representing the sourcing activities on plastic injection in China. To get more details visit: http://www.dragonsourcing.com/china-sourcing-company/

1. © 2008 Dragon Sourcing. All rights reserved 1
Plastic Injection in China
Dragon Sourcing Experience Summary
April 2008

2. Almost any kind of plastic injected part can be produced in China
© 2008 Dragon Sourcing. All rights reserved 2
Household Domestic Appliance Medical Usage
Automotive parts Rigid packaging (bottles, jars, caps) Rubber parts.
Connectors Consumer Electronics, Telecom & IT Toys

3. The Chinese plastic injection suppliers we identified offer a large range of
capabilities and cost savings across the whole production process
© 2008 Dragon Sourcing. All rights reserved 3
Mold making Plastic injection
Secondary
Operations
• Mold steel: Assab, Buderus
ThyssenKrupp, etc.
• CNC/High Speed CNC:
Mikron, Makino, DMG,
Hitachi, etc.
• EDM: AGIE, Charmilles,
Makino, Sodick.
• Wirecut: Charmilles, Makino,
Sodick
• Gun-drill machine for big
mold.
• QC tool: CMM, Projector.
• Hot runner: Mold Master,
Hasco, Huskey, Synventive,
etc.
• CAD/CAM/CAE systems:
Catia, UG, Pro-E, Autocad,
Cimitron, Moldflow.
• Tonnage range: 25T-3500T.
• Machine type: hydraulic
pressure drive, all electric drive
• Top brand: Sumitomo, Toshiba,
Fanuc, Demag, Krauss-Maffei,
Huskey, Engel, JSW, etc.
• Local brand: Haitian, Chenhong
• Auxiliary equipment: Robot,
mold temp. controllers, material
dryer.
• Special molding methods: metal
insert molding, rubber over
plastic, double color molding, 2
steps molding, in-mold labelling,
gas-assistant, etc.
• Labor cost
• Reduced overhead cost
• Whenever relevant, locally/regionally made machines
• Decoration: Hot stamping,
transfer printing, silk printing,
rotation printing, metal
coating, painting, labelling,
etc.
• Assembling: ultrasonic
welding, heat lock, manual
assembly, labelling, etc.
Capabilities
Cost savings
drivers

4. Illustrative pictures for Mold Making capabilities
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Makino high speed CNCMakino high speed CNC, 20000 rpm, 20000 rpm Charmilles EDM machine
Mitutoyo CMM (3D coordinate measuring machine) Mold assembly workshop
Mold makingMold making

5. We invite mold makers to quote and submit complete DFMs that are
analyzed with or by our clients
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Mold makingMold making

6. Design adjustments can be proposed to reduce mold cost and ease the
injection
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(#6) Yellow surface 0 draft. Propose to
add angle to core side
CLIENT EXAMPLE
Mold makingMold making

7. © 2006 Dragon Sourcing. All rights reserved 7
For each of our clients, our sourcing approach is based on a clear
understanding of its needs
Negotiation
Pre-visit
by Dragon
Sourcing
+
Client Visit
RFPRFI
Supplier
Identification
Sourcing screening process overview
Phone
screening
Client
specifications
analysis
1st FILTER
Objective: Eliminate suppliers
that don't have the required
profile
Key Criteria:
•Supplier is a manufacturer (vs.
trader)
•Company size (e.g., turnover, #
of employees, # of machines)
•Manufactures products with
similar technology and quality
requirements (e.g. Automotive
parts with a minimum of 30-40%
fiberglass)
1st FILTER
Objective: Eliminate suppliers
that don't have the required
profile
Key Criteria:
•Supplier is a manufacturer (vs.
trader)
•Company size (e.g., turnover, #
of employees, # of machines)
•Manufactures products with
similar technology and quality
requirements (e.g. Automotive
parts with a minimum of 30-40%
fiberglass)
2nd
FILTER
Objective: Screen supplier
capabilities
Key Criteria:
•Production equipment for mold
making and injection (e.g. gas
assisted injection)
•Decoration capabilities (e.g.
screen printing)
•Sales geographical breakdown,
export experience
•Mold design experience
2nd
FILTER
Objective: Screen supplier
capabilities
Key Criteria:
•Production equipment for mold
making and injection (e.g. gas
assisted injection)
•Decoration capabilities (e.g.
screen printing)
•Sales geographical breakdown,
export experience
•Mold design experience
4th FILTER
Objectives:
•Check the accuracy of the
RFI/RFP information
•Collect additional inputs on
supplier technology and quality
capabilities
•Test partnership attitude
•Validate compliance with Social
Accountability requirements
Key Criteria:
•Complete check-list / visit report
4th FILTER
Objectives:
•Check the accuracy of the
RFI/RFP information
•Collect additional inputs on
supplier technology and quality
capabilities
•Test partnership attitude
•Validate compliance with Social
Accountability requirements
Key Criteria:
•Complete check-list / visit report
BASED ON
CLIENT EXAMPLE
3rd FILTER
Objective: Identify supplier with
competitive and consistent
quotations
Key Criteria:
•Provide quotation with complete
breakdown
•Cost factors are consistent with
the RFI information (e.g.,
machine rates vs machine
brands) and quoted prices are in
a "reasonable" market range
•Overall Value for Money
3rd FILTER
Objective: Identify supplier with
competitive and consistent
quotations
Key Criteria:
•Provide quotation with complete
breakdown
•Cost factors are consistent with
the RFI information (e.g.,
machine rates vs machine
brands) and quoted prices are in
a "reasonable" market range
•Overall Value for Money
Plastic
injection
Plastic
injection

8. Plastic injection quotations are requested with a complete cost breakdown
© 2008 Dragon Sourcing. All rights reserved 8
* When applicable
Plastic
injection
Plastic
injection

9. Machine hourly rates includes labor and overhead; they are analysed in regard
to the machine size/brand/drive as well as suppliers’ level of overhead
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50 60 80 120 130 150 160 180 200 220 250 280 450 550 350 450 650
Electric drive Hydraulic drive
Sum of Direct Labor cost per hour (RMB) Sum of Machine Depreciation cost per hour (RMB) Sum of Overhead cost per hour (RMB)
Example of Hourly Rates for 50 to 650T machinesExample of Hourly Rates for 50 to 650T machines
Plastic
injection
Plastic
injection

10. We achieve usually savings in the range of 15-40% on the total cost
© 2008 Dragon Sourcing. All rights reserved 10
Plastic
injection
Plastic
injection
Client Example - Savings before transportationClient Example - Savings before transportation

11. Workshop Robot
Resin Dryer Maintenance
Illustrative pictures for Plastic Injection workshops
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Plastic
injection
Plastic
injection

12. Hot Stamping Painting
Ultrasonic Welding In mold labelling
Illustrative pictures for Secondary Operations
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Secondary
Operations
Secondary
Operations

13. Some of our clients in plastic injection
© 2008 Dragon Sourcing. All rights reserved 13
Baby Stroller Parts Rigid Packaging for Household &
Body Care Products
Automotive Parts Domestic Appliances

14. In summary
• Dragon Sourcing can manage complete projects, from mold making to injection,
assembly and export
• We offer an access to the extensive range of supplier capabilities available in
China
• We are able to maximize the achievable savings as the result of
– Our deep experience in the plastic injection domain
– Our continuously updated and expanded database of suppliers
– The choice of the most appropriate suppliers on a case by case basis
– Our extensive machine rate database
– Our supplier qualification and negotiation processes
© 2008 Dragon Sourcing. All rights reserved 14