Husky Injection Molding Systems

Presented by:-

Preeti Murali Keith Wicks Zachary Branstetter Rohit Harikrishnan

Injection Molding:

Structure of the Business:

Important aspects of the Business:

1. 2. Machines Molds

3. 4. 5. 6.

Hot runners Robotics Valueadded services Sales and after sales service

Husky's Strategy:
Caters to the preform niche markets. Employs an Assemble-to-order strategy for medium sized machines and make-to-stock for the smaller ones. Concentrated mainly on PET preforms. Known for their speed, ruggedness, resin utilization, and durability. Lower cycle times. Known for charging a price premium, sometimes to the tune of 10% to 20%.
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SWOT analysis:
STRENGTHS Quality
Reliability Knowledge of business ( Experience) Technology (R&D) After sales service Values ( Energy and environment)

WEAKNESSES Cost

Low market share Concentration only on one particular product Sales force

OPPORTUNITIES Entry into new markets

Expansion of product range Reduction of internal costs Concentration on other products such as hot runners, molds, robots, etc.

THREATS low prices Competitor's

New entrants into the market Volatile commodity market (e.g. resin)

What went wrong:

1. Scarcity of PET resin led to processors halting their expansion plans. Thus putting orders for new equipment on hold. 2. New entrants into the market offered comparable products at prices approximately 20% lower. The sales team was unprepared for such dynamism in the business.
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Possible strategies:
Try and reduce the sales price of the existing product range. Enter new markets through M&As. Diversify the product range (do not rely only on the PET preform business). Develop a parallel low cost product line that competes with our competitors. Leverage the expertise in hot runners and robotics. Long term B2B contracts with major suppliers & customers. Go public while maintaining a controlling stake.

Recommendations:
Adhere to current Purpose and Values. Diversify the business (wider product range). Concentrate on the hot runner and robotics business. Instill new blood into and re-train the existing sales force. Contemplate entry into new/international markets through M&A.
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Evidences to back it up:

Husky
= 5.77 per min

Major Competitor
= 5.08 per min = 305.08 per hr = 5,766.1 per day (op. hrs. per day = 18.9)

Production cycles (based on cycle time)

= 346.15 per hr. = 7,719.23 per day (op. hrs. per day = 22.3)

Units produced per yr. (48 preforms per cycle) = 135,240,924.2

= 101,023,561.2
(It takes 488 days to match Huskys annual production)

Avg. wt. per preform Avg. wt. of preform per day Cost of production per day [@ $0.7 per kg] Cost of production per unit

= 24.39 gm. = 9,037.06 kg = 6,324.82 = $ 0.01707

= 24.42 gm. = 6,758.89 kg = 4,730.12 = $ 0.01709

(cost saving of $2800 per yr.)

Floor space occupied (@ rate of 100 per sq. = $ 343,100 foot)

(cost saving of $ 8700 per yr.)

= $ 351,800

Electricity consumption: Husky systems use 0.137 kWh less electricity per kg of preform produced @ the rate of $0.08/kWh. ( $ 36,151.85 savings per yr.)
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Thank you Questions???

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