OSIM To Focus On Expansion Plans In China

OSIM International (OSIM) intends to focus its expansion plans in China, which has been a

key growth market for over 10 years. There are currently 228 OSIM outlets in China, which

will increase to 270 by the end of the year. It intends to grow at the rate of 50-80 OSIM

outlets a year in China, while RichLife outlets will grow to the tune of 60-100 a year. In Jul,

OSIM reported that 2Q10 net profit rose 142% to $12.1m, mainly contributed by increased

sales and better margins. Revenue rose 12% to $131m from $117m in the corresponding

period last year. Total capital expenditure is expected to be $11-12m this year, CFO Peter

Lee said. Meanwhile, in 2H10, consumers can expect more new products in the ‘Relax and

Relieve’ sector, which has continuously been OSIM’s biggest driver of sales, Lee added.

Significance: The plan to make China as its prime target of expansion seems promising and

lucrative given the potential market growth, lower manpower cost as well as lower rent in the

mainland.

http://www.stockmarketsreview.com/reports/singapore_stock_market_and_companies_daily_report_20100901_35326/

Osim International Launches IPO Of 58 Million Shares At S$0.52 EachBackJul 20, 2000

Osim International Ltd ("OSIM"), one of Asia's leading marketer, distributor and franchisor of home healthcare and healthy lifestyle products, today (July 19, 2000) launched its initial public offer ("IPO") of 58 million shares at S$0.52 per share in connection to its listing on the Main Board of the Singapore Exchange Securities Trading Limited ("SGX-ST").

The total share offer representing approximately 25.2% of OSIM's enlarged share capital, comprises 38 million new shares and 20 million vendor shares. The total offer comprises a public offer tranche of 5.8 million shares and a placement tranche of 52.2 million shares, which consists of 46.4 million placement shares and 5.8 million shares reserved for the directors and employees of the Group. These reserved shares are priced at S$0.47 each. The balance 52.2 million shares are priced at S$0.52 each, and represent a historical price earnings ratio of 12.65 times based on the offer price and historical earnings per share of S$0.4114.11 cents in financial year ended December 31, 1999.

OSIM plans to use the estimated net proceeds of S$18.0 million from the IPO as follows:

approximately S$1.5 million to enhance and upgrade the Group's information technology systems in order to facilitate their Enterprise Resource Planning ("ERP") and Customer Relationship Management ("CRM");

approximately S$6.0 million for the expansion of their point-of-sales outlets in existing and new geographical markets, the development of new product lines and for strategic investments in e-commerce initiatives;

approximately S$8.0 million to partially finance the acquisition of land and construction costs of a new corporate headquarters in Singapore; and

the remaining of S$2.5 million will be used for additional working capital.

A regional player poised for global growth, OSIM was established in 1980 as a sole proprietorship retailing an array of household goods. Subsequently in 1983, the Company was converted to a private limited selling health-care related products such as hand-held massagers and foot reflexology rollers. The Group expanded rapidly and by 1987, it had established a distribution network of 10 outlets in Singapore, Hong Kong and Taiwan, marketing household goods and health-care related products. Today, OSIM operates a distribution network of over 200 outlets located in Asia, the Middle East and North America.

Said Dr Ron Sim, Chairman and Chief Executive Officer of OSIM: "OSIM's vision is to be a global leader in home healthcare and healthy lifestyle products. To achieve this status, we plan to increase our point-of-sales outlets worldwide to 300 by next year, 500 by year 2003, and 1,000 by year 2008. We believe that through franchising, we can expand and multiply our point-of-sales outlets at a more rapid rate as it allows us to focus on our core strengths in marketing. Negotiations are currently underway to appoint franchisees in the Philippines, and we are also hoping to reach to Australia, United Kingdom, South Africa and Korea."

Operating a comprehensive business process, the Group carries a wide range of home healthcare and healthy lifestyle products, which can be broadly categorised under:

Healthy LifestyleProducts include massage chairs, massage mattresses, personal home saunas, slimming belts and fitness equipment, which cater to the needs of an increasingly

affluent society to provide customers with relaxation techniques and luxurious comfort.

Health CareFoot reflexology rollers, pulse massagers, hand-held massagers, eye massagers, massaging hairbrushes, hot and cold gel packs, mechanical rotary toothbrushes and hearing aids fall under healthcare products.

Health CheckThe Group markets a range of diagnostic equipment like blood pressure monitors, pedometers, electronic weight and height measuring machines, digital thermometers and ear scan thermometers. OSIM also plans to market posters, literature, music compact discs and tapes on the theme of health and healthy living to provide a total health experience to customers.

According to surveys conducted by The Gallup Organisation and ACNielsen, OSIM is the Number One brand for electronic home healthcare products in Singapore in terms of brand awareness, market share and perceived image and the overall preferred brand in Hong Kong for massage chairs, foot reflexology rollers, pulse massagers and pulse monitors. OSIM attributes its competitive edge over its competitors to its ability to exercise full control over their point-of-sales network and to dictate 'how' to sell and 'what' to sell, allowing for future planning of product launches as far as two years ahead. Such control over its supply chain also provides a buffer to the Group from the impact of cyclical changes in business cycles.

In the next phase of its future growth, the Group intends to expand its business by marketing and distributing other related home health-care products like health food and supplements, and fitness equipment. OSIM has already ventured into wholesale distribution in Singapore to hospitals, the Apex Pharmacy and Guardian Pharmacy Chains and Chinese medical halls and also intends to increase its wholesale distribution sales in other primary markets such as Hong Kong and Taiwan through hospitals, pharmacies, Chinese medical halls, health clubs, beauty centres and fitness centres.

Traditionally serving the middle to high end of the product price range in the market, the Group has also developed a lower-priced secondary brand "NORO" to serve consumers who are more price sensitive, targeting a whole new segment of the market. Products sold under the "NORO" brand will not cannibalise the main OSIM brand as it will be differentiated by having less complex designs and fewer features. Currently, lower-priced massage chairs and kneading massagers are retailed under the "NORO" brand for which the trademark has been registered in PRC, Hong Kong and Indonesia. Trademark applications are presently pending for approval in Singapore and Malaysia.

For the financial year ended December 31, 1999, OSIM's turnover rose 48% to S$103.1 million, from S$69.7 million in financial year 1998. Profit before tax also rose by 239% to S$10.8 million for 1999, compared to S$3.2 million the previous year.

Oversea-Chinese Banking Corporation Limited ("OCBC Bank") is the manager, underwriter and placement agent for the IPO.

The IPO opens at XX am on July 19, 2000 and closes at noon on July 267, 2000. Trading on a "when issued" basis is expected to begin on July 31, 2000.

Copies of the prospectus and application forms may be obtained on request, subject to availability, at selected branches of OCBC Bank, members of the Association of Banks in Singapore, members of the SGX-ST, and merchant banks in Singapore. Applications for

shares may be made on the application forms referred to in the prospectus or by way of electronic share applications at ATMs of the participating banks set out in the prospectus.

http://osim.listedcompany.com/news.html/id/94630

FINANCIAL PERFORMANCEThe Group achieved consolidated revenue of RM 128.5 million, representing a reduction of 3.6% as compared to RM 133.3 million achieved in the previous fi nancial year. Net Loss after taxation attributable to equity holders widened to RM 12.4 million as compared to the Net Loss after taxation of RM 8.4 million recorded in the previous financial year.

The Group made a net provision for doubtful debt of RM 9.15 million during the financial year compared to the RM 4.15 million provisions in the previous year. The provision was necessary as the economic conditions had affected the businesses of our distributors and their abilities to make regular repayment towards their outstanding position. The Group is continuing to pursue repayment of accounts receivable while taking steps to improve the businesses. Excluding the doubtful debt provisions of the respective years above, Net Loss after taxation attributable to equity holders for the fi nancial year ended 30 June 2009 amounted to RM 4.36 million as compared to the Net Loss of RM 4.22 million recorded in the previous financial year.

Despite the loss, the Group is financially strong with net cash holdings of RM 42.4 million or 35.4 cents per share as at 30 June 2009 compared to RM 32.4 million or 27.0 cents per share the previous year.

OPERATIONAL REVIEWThe global financial and economic crisis brought about by sub-prime crises had affected consumer confidence which in turn resulted in lower retail patronage. The Group responded by reducing exposure and focused instead on operational efficiency to address the weaker demand. The number of outlets was reduced by 11.24% from 169 to 150 while consolidated revenue reduced 3.6% to RM128.5 million compared to previous financial year’s consolidated revenue of RM133.3 million.

Geographically, the Malaysian market remains the largest revenue contributor with RM 85.7 million, accounting for 66.7% of Group revenue but overseas business had increased to 33.3% at RM 42.8 million compared to 28.0% in the last financial year.

  FY09 FY08

 Revenue

(RM'million)No. of Outlets*

Revenue (RM'million)

No. of Outlets*

Malaysia 85.7 59 96.0 71Overseas 42.8 91 37.3 98Total 128.5 150 133.3 169

* Include distributors' outlets

During the financial year, we have successfully penetrated into Saudi Arabia with the appointment of a distributor. Today, Ogawa’s products can be found in 10 outlets in Jeddah and Riyadh. The distributor in Thailand had however ceased operations in January 2009. Therefore, we are now in 9 countries namely Malaysia, Singapore, China, Hong Kong, Australia, Indonesia, Vietnam, Myanmar and Saudi Arabia with a total of 150 outlets.

Affordable Products and Tactical AdvertisingThe Group had launched a number of key products during the financial year including Ogawa SmartAire Massage Chair, Comfort Massage Chair, Mobile Shiatsu, upgraded version of Mobile Seat, Foot Master Massager, Arm Blood Pressure monitor and etc which have receive great response from the market. 

The focus on product attributes, especially on Ogawa SmartAire Massage Chair had

enhanced the value and image of the brand as being technically advanced.

The Group intends to intensify the introduction of new products and share with the world our passion for healthy living.

Malaysian operationsThe Group had opened 7 new outlets and closed 20 outlets in Malaysia as we continue to keep abreast of the changes in shopping behaviours of Malaysians. The new outlets are in Aeon Seberang Prai, Giant Tawau, 1 Borneo Kota Kinabalu, Boulevard Kuching, Aeon Bukit Indah Johor Bahru, Kluang Mall and Wetex Parade Muar.

The Group is constantly on the lookout for good retail locations and shall consider sites with good pedestrian traffic flow of the target consumer profile. In the meantime, the Malaysian focus shall be on roadshows and exhibitions to promote Ogawa brand and raise awareness on the therapeutic benefi ts of our products.

Overseas operationsDuring the financial year, the Group completed its consolidation exercise of its overseas outlets to rationalize its operations. Inclusive of distributors’ outlets, the Group now has presence in 91 locations overseas. The exercise has been promising as revenue generated from overseas has been promising as revenue generated from overseas 37.3 million in the previous financial year despite fewer sites and the weak economic environment.

The Group had assumed the sales and distribution of Ogawa products in Australia via a newly incorporated wholly-owned subsidiary, Ogawa International (Aust) Pty Ltd since 1 May 2009. The operating results since commencement have been encouraging.

CORPORATE DEVELOPMENTOn 2 March 2009, the Group had through its wholly-owned subsidiary Healthy World Lifestyle Sdn Bhd (“HWL”), incorporated a wholly-owned subsidiary company in Hong Kong, Ogawa International Limited (“OIL”) for international business development. On 8 April 2009, HWL had also incorporated a wholly-owned subsidiary, Ogawa International (Aust) Pty Ltd (“OIA”) in Australia to undertake the sales and distribution of Ogawa’s products in Australia.

Subsequent to the financial year end, on 8 October 2009, the Group had through Ogawa Health-Care (Selangor) Sdn. Bhd., a wholly-owned subsidiary signed a sales and distributorship agreement with V-Patch Medical Systems Pty Ltd (“VPMS”) to distribute health care products in mutually agreed jurisdictions. VPMS is an Australian based company that specializes in the design and supply of non-invasive biosensors with wearable patches and modules connecting to mobile phone networks and the internet.

DIVIDENDThe Board is of the view that the cash holding can be better utilized to enhance operations and consequently, create a sustainable long-term shareholders’ value. Therefore, no final dividend is recommended for the financial year ended 30 June 2009.

PROSPECTS AND OUTLOOKConsumer confidence has improved compared to a year ago but most countries have yet to emerge from the global fi nancial crisis that ravaged their economies. In this environment, the Group sees opportunities for growth and expansion at relatively low cost to new markets.

With our asset light business model, strong product design and development team, cost containment efforts and high cash position, the Group is aiming for better results this year. 

http://www.ogawaworld.net/corporate/about/chairman_message.php

Company Profile and Milestones     TRADITONAL THERAPIES FROM THE EAST.

STATE-OF THE-ART TECHNOLOGY FROM THE WEST.

A BOLD NEW DIRECTION ON INNOVATIVE HEALTHCARE

With over 20 years’ experience creating innovative healthcare products, OTO has refined its biomedical knowledge by perfecting the balance of traditional learnings from the East, and revolutionary technologies from the West. With this platform, products dedicated to help people live better, and longer, are continuously developed. Like fitness and relaxation products to keep bodies rejuvenated and vital, diagnostics products for anyone to effectively monitor health, and therapeutic products to alleviate pains and ailments. OTO boasts a strong line-up of products and through collaborations with established manufacturers, aim to put an OTO product in every home in the Asia Pacific and then, the world. 

OUR REGIONAL PRESENCE

Singapore is poised to scale new heights in the 21st century. With this exciting vision come opportunities that are at once varied, exciting, challenging.

Our business operational units are heightened with a knowledge management procedure, where OTO Singapore is the hub of the Asia Pacific region, with regional offices in Hong Kong & Malaysia.

Overtime, our Asia Pacific network spans from Indonesia, Thailand, Philippines, Brunei, India, Australia & New Zealand. 

MAKING A DIFFERENCE

OTO aims to be a people's brand. With our primary emphasis on innovative healthcare therapies, we seek to reach out to everyone in providing credible products to our consumers with the right pricing strategy.

We believe that health care is not limited only to people with deep-pockets and seeks to reinforce education on the importance of rehabilitative therapies and health care maintenance.

Thus changing the perception of people who associate health with negative attributes, such as ‘death’, ‘problems’, ‘no wealth means no

health’, etc. 

 OUR PEOPLE

At OTO we truly believe that people are our most valuable assets and the foundation of our business.

We undergo a thorough search and selection process as we feel it is so important to retain and develop talents by nurturing challenging careers, creating an exciting work environment and providing opportunities to learn and grow.

Our local talents in respective countries seeks to develop a localize management team who are effectively bi-lingual to reflect on the diverse Asia Pacific market, thus working towards a unified goal to a global brand.

The OTO Training and Development work force program seeks to constantly enhance the professional skills of our people with a sound understanding on health care.

http://www.otobodycare.com/sg/english/abtoto.cfm

Injection molding (British English: moulding) is a manufacturing process for producing parts from both thermoplastic andthermosetting plastic materials. Material is fed into a heated barrel, mixed, and forced into a mold cavity where it cools and hardens to the configuration of the mold cavity. [1] After a product is designed, usually by an industrial designer or anengineer, molds are made by a moldmaker (or toolmaker) from metal, usually either steel or aluminum, and precision-machined to form the features of the desired part. Injection molding is widely used for manufacturing a variety of parts, from the smallest component to entire body panels of cars.

Contents:1. Process characteristics2. History3. Applications4. Examples of polymers best suited for the process5. Equipment6. Injection process7. Process troubleshooting8. Lubrication and cooling9. Power requirements10. Inserts11. Gallery12. See also13. Notes14. References15. External links

1. Process characteristics

Utilizes a ram or screw-type plunger to force molten plastic material into a mold cavity Produces a solid or open-ended shape that has conformed to the contour of the mold Uses thermoplastic or thermoset materials Produces a parting line, sprue, and gate marks Ejector pin marks are usually present

[2]

2. History

The first man-made plastic was invented in Britain in 1851 by Alexander Parkes. He publicly demonstrated it at the 1862 International Exhibition in London, calling the material he produced "Parkesine." Derived from cellulose, Parkesine could be heated, molded, and retain its shape when cooled. It was, however, expensive to produce, prone to cracking, and highly flammable.

In 1868, American inventor John Wesley Hyatt developed a plastic material he named Celluloid, improving on Parkes' invention so that it could be processed into finished form. Together with his brother Isaiah, Hyatt patented the first injection molding machine in 1872. [3] This machine was relatively simple compared to machines in use today. It worked like a largehypodermic needle, using a plunger to inject plastic through a heated cylinder into a mold. The industry progressed slowly over the years, producing products such as collar stays, buttons, and hair combs.

The industry expanded rapidly in the 1940s because World War II created a huge demand for inexpensive, mass-produced products. In 1946, American inventor James Watson Hendry built the first screw injection machine, which allowed much more precise control over the speed of injection and the quality of articles produced. This machine also allowed material to be mixed before injection, so that colored or recycled plastic could be added to virgin material and mixed thoroughly before being injected. Today screw injection machines account for the vast majority of all injection machines. In the 1970s, Hendry went on to develop the first gas-assisted injection molding process, which permitted the production of complex, hollow articles that cooled quickly. This greatly improved design flexibility as well as the strength and finish of manufactured parts while reducing production time, cost, weight and waste.

The plastic injection molding industry has evolved over the years from producing combs and buttons to producing a vast array of products for many industries including automotive, medical, aerospace, consumer products, toys, plumbing, packaging, and construction. [4]

3. Applications

Injection molding is used to create many things such as wire spools, packaging, bottle caps, automotive dashboards, pocket combs, and most other plastic products available today. Injection molding is the most common method of part manufacturing. It is ideal for producing high volumes of the same object. [5] Some advantages of injection molding are high production rates, repeatable high tolerances, the ability to use a wide range of materials, low labor cost, minimal scrap losses, and little need to finish parts after molding. Some disadvantages of this process are expensive equipment investment, potentially high running costs, and the need to design moldable parts. [6]

4. Examples of polymers best suited for the process

Most polymers may be used, including all thermoplastics, some thermosets, and some elastomers. [7] In 1995 there were approximately 18,000 different materials available for injection molding and that number was increasing at an average rate of 750 per year. The available materials are alloys or blends of previously developed materials meaning that product designers can choose from a vast selection of materials, one that has exactly the right properties. Materials are chosen based on the strength and function required for the final part, but also each material has different parameters for molding that must be taken into account. [8] Common polymers like Epoxy and phenolic are examples of thermosetting plastics while nylon, polyethylene, and polystyrene are thermoplastic. [9]

5. Equipment

Paper clip mold opened in molding machine; the nozzle is visible at right

Main article: Injection molding machine

Injection molding machines consist of a material hopper, an injection ram or screw-type plunger, and a heating unit. [2] They are also known as presses, they hold the molds in which the components are shaped. Presses are rated by tonnage, which expresses the amount of clamping force that the machine can exert. This force keeps the mold closed during the injection process. Tonnage can vary from less than 5 tons to 6000 tons, with the higher figures used in comparatively few manufacturing operations. The total clamp force needed is determined by the projected area of the part being molded. This projected area is multiplied by a clamp force of from 2 to 8 tons for each square inch of the projected areas. As a rule of thumb, 4 or 5 tons/in2 can be used for most products. If the plastic material is very stiff, it will require more injection pressure to fill the mold, thus more clamp tonnage to hold the mold closed. [10] The required force can also be determined by the material used and the size of the part, larger parts require higher clamping force. [11]

5. 1. Mold

Mold or die are the common terms used to describe the tooling used to produce plastic parts in molding.

Since molds have been expensive to manufacture, they were usually only used in mass production where thousands of parts were being produced. Typical molds are constructed from hardened steel, pre-hardened steel, aluminum, and/or beryllium-copper alloy. The choice of material to build a mold from is primarily one of economics; in general, steel molds cost more to construct, but their longer lifespan will offset the higher initial cost over a higher number of parts made before wearing out. Pre-hardened steel molds are less wear-resistant and are used for lower volume requirements or larger components. The typical steel hardness is 38-45 on the Rockwell-C scale. Hardened steel molds are heat treated after machining. These are by far the superior in terms of wear resistance and lifespan. Typical hardness ranges between 50 and 60 Rockwell-C (HRC). Aluminum molds can cost substantially less, and, when designed and machined with modern computerized equipment, can be economical for molding tens or even hundreds of thousands of parts. Beryllium copper is used in areas of the mold that require fast heat removal or areas that see the most shear heat generated. [12] The molds can be manufactured either by CNC machining or by using Electrical Discharge Machining processes

Injection molding die with side pulls

"A" side of die for 25% glass-filled acetal with 2 side pulls.

Close up of removable insert in "A" side.

"B" side of die with side pull actuators.

Insert removed from die.

5. 2. Mold design

Standard two plates tooling - core and cavity are inserts in a mold base - "family mold" of five different parts

The mold consists of two primary components, the injection mold (A plate) and the ejector mold (B plate). Plastic resin enters the mold through a sprue in the injection mold, the sprue bushing is to seal tightly against the nozzle of the injection barrel of the molding machine and to allow molten plastic to flow from the barrel into the mold, also known as the [13] . The sprue bushing directs the molten plastic to the cavity images through channels that are machined into the faces of the A and B plates. These channels allow plastic to run along them, so they are referred to as runners. [14] The molten plastic flows through the runner and enters one or more specialized gates and into the cavity [15] geometry to form the desired part.

The amount of resin required to fill the sprue, runner and cavities of a mold is a shot. Trapped air in the mold can escape through air vents that are ground into the parting line of the mold. If the trapped air is not allowed to escape, it is compressed by the pressure of the incoming material and is squeezed into the corners of the cavity, where it prevents filling and causes other defects as well. The air can become so compressed that it ignites and burns the surrounding plastic material. [16] To allow for

removal of the molded part from the mold, the mold features must not overhang one another in the direction that the mold opens, unless parts of the mold are designed to move from between such overhangs when the mold opens (utilizing components called Lifters).

Sides of the part that appear parallel with the direction of draw (The axis of the cored position (hole) or insert is parallel to the up and down movement of the mold as it opens and closes) [17] are typically angled slightly with (draft) to ease release of the part from the mold. Insufficient draft can cause deformation or damage. The draft required for mold release is primarily dependent on the depth of the cavity: the deeper the cavity, the more draft necessary. Shrinkage must also be taken into account when determining the draft required. [18] If the skin is too thin, then the molded part will tend to shrink onto the cores that form them while cooling, and cling to those cores or part may warp, twist, blister or crack when the cavity is pulled away. [19] The mold is usually designed so that the molded part reliably remains on the ejector (B) side of the mold when it opens, and draws the runner and the sprue out of the (A) side along with the parts. The part then falls freely when ejected from the (B) side. Tunnel gates, also known as submarine or mold gate, is located below the parting line or mold surface. The opening is machined into the surface of the mold on the parting line. The molded part is cut (by the mold) from the runner system on ejection from the mold. [20] Ejector pins, also known as knockout pin, is a circular pin placed in either half of the mold (usually the ejector half), which pushes the finished molded product, or runner system out of a mold. [21]

The standard method of cooling is passing a coolant (usually water) through a series of holes drilled through the mold plates and connected by hoses to form a continuous pathway. The coolant absorbs heat from the mold (which has absorbed heat from the hot plastic) and keeps the mold at a proper temperature to solidify the plastic at the most efficient rate. [22]

To ease maintenance and venting, cavities and cores are divided into pieces, called inserts, and sub-assemblies, also calledinserts, blocks, or chase blocks. By substituting interchangeable inserts, one mold may make several variations of the same part.

More complex parts are formed using more complex molds. These may have sections called slides, that move into a cavity perpendicular to the draw direction, to form overhanging part features. When the mold is opened, the slides are pulled away from the plastic part by using stationary “angle pins” on the stationary mold half. These pins enter a slot in the slides and cause the slides to move backward when the moving half of the mold opens. The part is then ejected and the mold closes. The closing action of the mold causes the slides to move forward along the angle pins. [23]

Some molds allow previously molded parts to be reinserted to allow a new plastic layer to form around the first part. This is often referred to as overmolding. This system can allow for production of one-piece tires and wheels.

Two-shot or multi-shot molds are designed to "overmold" within a single molding cycle and must be processed on specialized injection molding machines with two or more injection units. This process is actually an injection molding process performed twice. In the first step, the base color material is molded into a basic shape. Then the second material is injection-molded into the remaining open spaces. That space is then filled during the second injection step with a material of a different color. [24]

A mold can produce several copies of the same parts in a single "shot". The number of "impressions" in the mold of that part is often incorrectly referred to as cavitation. A tool with one impression will often be called a single impression(cavity) mold.[25] A mold with 2 or more cavities of the same parts will likely be referred to as multiple impression (cavity) mold. [26] Some extremely high production volume molds (like those for bottle caps) can have over 128 cavities.

In some cases multiple cavity tooling will mold a series of different parts in the same tool. Some toolmakers call these molds family molds as all the parts are related. [27]

5. 3. Effects on the material properties

The mechanical properties of a part are usually little affected. Some parts can have internal stresses in them. This is one of the reasons why it's good to have uniform wall thickness when molding. One of the physical property changes is shrinkage. A permanent chemical property change is the material thermoset, which can't be remelted to be injected again. [28]

5. 4. Tool materials

Tool steel or beryllium-copper are often used. Mild steel, aluminum, nickel or epoxy are suitable only for prototype or very short production runs. [29] Modern hard aluminum (7075 and 2024 alloys) with proper mold design, can easily make molds capable of 100,000 or more part life.[citation needed]

5. 5. Geometrical Possibilities

The most commonly used plastic molding process, injection molding, is used to create a large variety of products with different shapes and sizes. Most importantly, they can create products with complex geometry that many other processes cannot. There are a few precautions when designing something that will be made using this process to reduce the risk of weak spots. First, streamline your product or keep the thickness relatively uniform. Second, try and keep your product between 2 to 20 inches.

The size of a part will depend on a number of factors (material, wall thickness, shape,process etc.). The initial raw material required may be measured in the form of granules, pellets or powders. Here are some ranges of the sizes.

Method Raw materials Maximum size Minimum size Injection molding (thermo-plastic) Granules, pellets, powders 700 oz. Less than 1 oz. Injection molding (thermo-setting) Granules, pellets, powders 200 oz. Less than 1 oz.

Properties of Silicone Rubber

Silicone rubber offers good resistance to extreme temperatures, being able to operate

normally from -55°C to +300°C. At the extreme temperatures, the tensile strength,

elongation, tear strength and compression set can be far superior to conventional

rubbers although still low relative to other materials. Organic rubber has a carbon to

carbon backbone which can leave them susceptible to ozone, UV, heat and other

ageing factors that silicone rubber can withstand well. This makes it one of

the elastomers of choice in many extreme environments.Compared to organic

rubbers, however, silicone rubber has a very low tensile strength.[1] For this reason,

care is needed in designing products to withstand even low imposed loads. Silicone

rubber is a highly inert material and does not react with most chemicals. Due to its

inertness, it is used in many medical applications and in medical implants.

http://en.wikipedia.org/wiki/Silicone_rubber

Costing and profitabilityCategory: Finance

Knowing the cost of an item, or an activity makes it possible to calculate the profit of that item or activity. This is very important. Sometimes businesses are not aware that they are making a loss on a specific item or activity because some of the costs that should be attributed to that product or activity have been absorbed elsewhere - so that one part of the business is subsidising another part. There are two main components of cost:

1. Direct costs that can be associated directly with the production of a unit of a product orservice e.g. raw materials, and labour costs that can be specifically associated with that particular unit.

2. Indirect costs that can not be tied down to specific units of output. For example, in a factory producing several different types of chocolate bars, management costs and otheroverheads such as lighting and heating may not be able to be tied down to particular product lines. These indirect costs then need to be apportioned in a sensible way among the various product lines. 

Direct and indirect costs

There are several ways of absorbing these indirect costs. For example, they could be absorbed among different chocolate bar lines according to the floor space that each line takes up in the factory, or according to the sales revenue of each line, or by some other method. Using such an approach the direct costs can then be divided up into the various production lines and then into the number of units coming off the line.

A factory produces 10,000 chocolate bars of a specific type each day (along with several other chocolate bars on other parts of the factory floor). The direct cost of producing each bar is calculated at 20 pence (to cover raw material, and direct labour costs). In addition, it is calculated that each product line should absorb £1,000 of indirect costs per day (the method of absorbing the costs having been calculated in proportion to the sales revenue of each product line). This means that 10p of overhead cost is allocated to each unit of production from that line.

Total cost per unit is therefore: 20p direct cost plus 10p indirect cost = 30p. 

If the chocolate bars are sold on to retailers at 35p each, then we can see that each bar is making a profit of 5p. (If the total cost per unit had been more than 35p then there would have been a case for either raising price, or discontinuing that line).

Direct costs according to CIMA are expenditures which can be economically identified with a specific saleable cost unit. Indirect costs are therefore ones which can not be directly identified with specific saleable cost units.

http://www.thetimes100.co.uk/theory/theory--costing-profitability--299.php