Cost Structure & Sourcing Guide: Injection Molding & Custom Products & Product Sourcing

At FMS, we leverage a transparent, data-driven cost-analysis framework aligned with Western procurement standards (Total Cost of Ownership – TCO). Whether you are sourcing a new custom program, transferring existing tooling, or benchmarking, this guide outlines how we calculate value and optimize costs for your project.

1. Tooling (Injection Mold) Cost Analysis
We break down tool costs using standard Value Engineering (VE) metrics to ensure long-term ROI based on your SPI Class requirements.
Total Tooling Cost =Material & Components + Engineering & Design + Machining & Labor + Validation (Tryouts) + Margin + Export Logistics

Typical Tooling Cost Allocation:
• Materials & Standard Components (15% – 30%): Includes mold base (e.g., LKM) and premium core/cavity steel (e.g., ASSAB, Finkl, Schmiedewerke Gröditz) based on volume requirements (SPI Class 101/102). Standard components utilize global brands (e.g., DME, HASCO, YUDO, Mastip).
• Machining, Processing & Overhead (30% – 50%): Precision CNC, EDM, wire cutting, and skilled toolmaker labor.
• Engineering & Mold Design (10% – 15%): DFM (Design for Manufacturability), Mold flow analysis, and 3D CAD modeling.
• Mold Validation & Tryouts (3% – 5%): T0 to T2 sampling, CMM dimensional inspection, and scientific molding validation.
• Packaging & Export Logistics (approx. 3%): ISPM-15 compliant sea/air-worthy wooden crating and anti-rust treatment.
• Note on Taxes: For direct export, Pricing is provided on an FOB, FCA, or DDP basis excluding domestic VAT.

2. Part Production (Injection Molding) Cost Analysis
Our piece-part pricing separates material, press time, and secondary operations for 100% transparency.
Part Unit Price =Material Cost +Processing (Press) Cost+Post-Processing & Assembly+Packaging & Logistics
Cost Breakdown Metrics:
• Raw Material Cost: Calculated using true net weight plus localized scrap purge rates.
Material Cost per Part=Part Weight (g)+Runner Spruce Weight allocated  per cavity Material Yield Coefficient times Resin Market Price per gram
• Material Scrap Rate: Typically 3% – 5% for stable runs.
• Setup Purge Material: Dependent on resin type (e.g., engineering plastics like PEEK/PPS vs. commodity resins like PP/ABS) and machine tonnage setup.
• Processing Cost (Press Time): Calculated by machine clamp tonnage and cycle time.
Processing Cost per Part=Hourly Press Rate Cavitation times Hourly Throughput Rate Cycle Time
• Machine Fleet: We match your parts to optimized press sizes (ranging from global brands like Arburg, Engel, Sumitomo to premium tier-1 domestic presses like Haitian) to minimize hourly operating costs.
• Packaging & Customization: Standard bulk pack is included. Custom requirements (ESD packaging, individual bagging, or retail-ready boxes) are itemized separately.
3. Optimization & Strategic Sourcing (RFQ Guidelines)
To accelerate your program’s Time-to-Market (TTM) and secure the most competitive, accurate quotation, please provide the following variables in your RFQ:

A. Technical & Data Requirements
• 3D CAD Data: Preferred formats: .STEP, .IGS, .X_T. 2D control drawings (.PDF, .DWG) indicating critical-to-quality (CTQ) dimensions and tolerances.
• Resin Specifications: Exact grade/brand (e.g., Sabic Lexan Polycarbonate) or performance equivalent requests (UL94 flame rating, UV stabilization, FDA compliance).

B. Life-Cycle Volume & Supply Chain Strategy
• EAU (Estimated Annual Volume): This dictates whether we propose a single-cavity prototype tool (aluminum soft steel) or a high-cavity, fully hardened hot-runner production tool (SPI Class 101) to lower your piece-part cost.
• Release Quantities (MOQ): Do you pull in batches of 5,000, or the full 20,000 at once? Batch sizes impact setup amortization and material purchasing power.

C. Program Timeline & Milestones
• T1 Sample Approval Date: When do your design and quality teams need parts for fit/form/function testing?
• SOP (Start of Production): Target date for commercial volume shipments.

D. Aesthetic & Functional Criteria
• Surface Finish: SPI/MT (Mold-Tech) textures, high-gloss polishing, or specific color matching (Pantone/RAL).
• Gate & Parting Line Restrictions: Advise on non-cosmetic zones to ensure gate locations do not interfere with assembly or industrial design.