There seems to be a huge disconnect between purchasers of molds (sometimes referred to as tooling) for producing the billions of plastic components, and the suppliers of molds. For many purchasers, buying molds is an enigma, and moldmakers find it equally mystifying dealing with purchasers. This rift continues causing problems despite a decade of discussion about "strategic partnerships" between OEMs and suppliers.

A mold is not a commodity item, and one of the most often-voiced complaints by moldmakers is that purchasers try to buy a mold as if it were a commodity. A mold is a technically complex piece of equipment used to produce optimum plastic parts that brings value to the OEM on a long-term basis. Generally, say moldmakers, if a purchasing specialist is accustomed to buying capital equipment, they have a much better understanding of buying molds than a purchasing specialist who typically buys only commodities or MRO.

In the big picture, mold design and build are critical components in the overall cost-to-manufacture an OEM's product. Thus, purchasing a mold needs to be based on the mold's quality, and selecting a mold that optimizes production and maximizes efficiency in manufacturing, is crucial.

Not all molds are created equal. That is because each moldmaker will see the part design a bit differently depending, on their experience and expertise. Another critical factor to buying the right mold for the job is making sure that the mold shops quoting the job are fairly equal in capabilities, technology and expertise. Prices can vary widely from shop to shop based on these variables. Purchasers who do not quote "apples-to-apples" when selecting the mold vendor are frustrating for mold shops.

Typically, moldmakers deal primarily with tooling engineers. Purchasing gets involved when a purchase order is required, which means that both engineering and purchasing facilitate the process of buying a mold. However, most moldmakers prefer that purchasing stay out of the loop completely. There are several reasons for this.

The perception among moldmakers is that purchasing people care only about price, not about the mold's quality. Critical to mold purchasing is understanding total "cost of ownership" of the molds. Initial price of the mold is only one factor in the total cost of ownership of the mold. Other factors to consider include the mold's productivity, efficiency, and maintenance requirements, which are directly related to the mold's design and build.

For example, cycle time is critical to manufacturing plastic components in a cost effective manner. A mold designed and built to run a 12-second cycle (a cycle is the time it takes for the mold to close, plastic material to be shot into the mold, cooling of the material and the mold to open and eject the part) will save the OEM a considerable amount of money in the long-run versus a mold that is designed and built to run a 16-second cycle. In the molding game, seconds are money; either money lost or money gained, and the mold is a determining factor.

Many mold purchasers look only at the price on the front of the quote sheet, say moldmakers, rather than the long-term value a mold provides to the OEM's manufacturing goals, such as total cost-to-manufacture.

"When we do work with purchasing, they are not interested in a quality mold, just the cost," says Jonathan Buss of Buss Precision Mold in Clackamus, Ore. "But [purchasing] never has to deal with the quality issues that result from a bad decision."

Often, this circumstance results when companies, particularly large OEMs, fracture budgets and responsibilities among multiple disciplines. For example, purchasing may be measured on the invoice price and completion date, manufacturing on efficiency and hitting production numbers, engineering on mold quality and design, etc., explains Jay Mortensen, who has a background in manufacturing finance, and is currently with Maytag's Global Procurement division in Chicago.

"When budgets and performance measures are fractured, it is easy to overlook important costs and risks related to procuring, developing, operating, and maintaining a mold," he says. "By using a disciplined, strategic cost management process the benefits of understanding the total cost of ownership can be realized."

Chuck Sand, president of Mold-Tech Inc. in Albertville, Minn., concurs. "Customers usually do a poor job of tracking all the costs incurred in a mold from the time the mold is purchased until the end of the project," he says.

Moldmakers recognize that purchasing specialists are often rewarded on or their performance graded by the amount of money they save the company. "[Purchasing] is primarily measured by year-over-year savings," says Dan Hess of Paragon Die & Engineering Co. in Grand Rapids, Mich.

Olav Bradley, co-owner of P.M. Mold in Schaumburg, Ill., and president of the American Mold Builders Association, believes that educating mold buyers is key to good mold-buying. "Everyone is concerned because of the large outlay of money initially. Purchasers need to understand what they are buying and why," he says. "Once we [educate the purchasing person] we have fewer problems."

Many problems that arise in the mold purchasing process can be traced directly to a lack of communication. Typically three parties become involved in the process: engineering and purchasing on the OEM side of the equation, and moldmakers on the other side. Often, these three groups are working to different agendas, say moldmakers.

"Purchasing has their own set of objectives, like low prices and to reduce the supply base," says Karl Van Blankenburg of American Mold Technologies Inc. in Harrison Township, Mich. "Engineering wants control of the release of data, timing and mold specifications."

These differing agendas of the two departments often cause conflict which interferes with the mold purchasing and build process. One moldmaker complained that he was forced to hold up a mold build for two months waiting for a progress payment according to terms of the contract. Getting a purchase order released in a timely manner is another problem, say moldmakers. Robert Roose, president of R&D Mold & Engineering in Mishawaka, Ind., says that too often, engineering has very little say in the payment practices of the companies for which they work.

Roose was forced to push a program out an additional three weeks because purchasing had not responded to a request for a purchase order, much to the surprise of the engineer for the project. "Engineering people are just as frustrated with today's [purchasing] system as moldmakers are," says Roose.

Susan Patton, purchasing manager for Corning Gilbert Inc. in Glendale, Ariz., says that poor communications between the vendor, purchasing and engineering can result in unnecessary delays and a lot of unhappy people all the way around. Patton suggests that communications between the three groups need to be formalized and put in writing to keep things from slipping through the cracks.

Tight engineering schedules often dictate that moldmakers begin a project without a purchase order. This also can create problems. Most moldmakers readily admit that they begin work with an engineer's verbal go-ahead, and worry about the P.O. later. One moldmaker commented, "Many times we start work before receiving a formal purchase order because [waiting for a P.O.] takes time that would cut into the mold build time if we were to wait."

Beginning work without a purchase order can come back to bite mold shops, and many shop owners say that they've been caught in the middle between what engineering wants them to do and a buyer who seems to be dragging their feet in releasing a purchase order.

Corning Gilbert's Patton says that most moldmakers are "trusting their customers too much" by relying on a verbal instruction. "They think they're doing us a favor by going ahead without a purchase order," she says. "Purchasing plays a key role in the process. I don't try to be the engineer. I'm the hostess, and my job is to make sure the right people are involved in the mold purchasing process from the get-go."

Another moldmaker commented that most engineers understand the process of mold purchasing and are helpful to moldmakers in dealing with purchasing people. "We use engineers as our ally in dealing with purchasing," he said.

Being a good mold purchaser, moldmakers believe, involves being educated about the mold industry, and the mold design and build process. Ray Coombs of Westminster Tool Inc. in Plainfield, Conn., sums it up: "It is very important for all of us to prove the value of our product to our customers, and this is accomplished through education.