Eight Phases of a Tool Transfer
Article From: MoldMaking Technology, Sherry L. Baranek , John Berg, Marketing Director from MGS Mfrg. Group 2

Posted on: 4/1/2011

Eight Phases of a Tool Transfer

It is big news when an OEM decides to move a substantial number of existing molds from one molding operation (either their own in-house/captive facility or an outsourced molder) to a selected custom molder.

Tool Transfer

Mold transfers—particularly large ones—require upfront planning, communications and investments that yield the goals and expectations of the project. A complete understanding of the OEM’s goals must be in place at the injection molding operation taking responsibility for the change in venue. The information and activities required leave no room for anything but complete cooperation and disclosure from both sides.

The eight phases of a transfer include:
1. Contractual agreement
2. Partnership
3. On-site assessment
4. Schedule
5. Safety stock
6. Equipment purchase/consigned equipment
7. Validation
8. Production molding

A contractual agreement should be established that provides legal commitment from both parties. The contents will protect the interest of all companies involved over the length of the agreement.

A dedicated and empowered team (see Transfer Program Management Team Sidebar, page xx) must be defined upfront based on the requirements of the project. Both companies must be willing to make whatever personnel arrangements are necessary to ensure success—forming a partnership with open lines of communication between the two management groups.

A detailed on-site assessment of the manufacturing operations at the current facility is required to develop a seamless transfer. During this time, the Project Management transfer team works with the current molding operation to thoroughly understand the production functions from order entry to shipment. This is an especially critical step. It is likely to be the only opportunity to capture the wealth of information that, in many cases, has not been properly documented. Molds that have run for years in the same press by the same operators are often taken for granted because they have run, seemingly successfully, for years.

The small shortcuts and down and dirty fix-ups are seldom noted and shared with management; instead, they become tribal knowledge. Only through observation and interrogation by appropriately experienced technicians (toolmakers and process engineers) are the actual production procedures understood and many hidden manufacturing sins revealed.

Based on what was learned from the on-site assessment, a transfer schedule will be developed. This again will be a joint effort as both parties must participate in its success. All parts, molds and associated production equipment will receive a scheduled date to transfer.

The originating production facility will be responsible to build safety stock per the production requirements of the transfer schedule. The amount of stock needed will be determined during the on-site assessment. The idea is to build enough safety stock that will allow for the tools and equipment to be transferred and validated at the destination facility. Typically, a six-week timeframe will work within the transfer schedule. It is likely that additional shifts and/or weekends will be needed to keep the safety stock build schedule on course.

The new molder may need to purchase any non-consigned equipment that may be critical to production of the transfer parts. Consignment equipment typically includes tooling and spares, fixtures, inspection gauges and all other product specific equipment. The new molder usually accepts standard maintenance responsibility on these items. Major tooling refurbishments will need to be quoted and submitted for approval.

The goal of validation is to gain customer approval on each part to be produced at the new molding facility. A process based on similarity to the existing manufacturing process and golden samples is typically initiated. Flexibility in this process must remain, as individual companies may require product specific production controls.

Upon validation approval, the new molder’s long-term production staff will manage and produce the products within the constraints of the contractual agreement per the projected volumes for each part in the transfer package.