Clients asked us several times to oversee a transfer of tools/molds from one factory to another. So we have written a checklist (see below).
Why move tooling from one factory to another?
- Maybe the buyer selects one factory to make a mold and another one to do the injection. This is generally not advised, but sometimes the buyer has no choice.
- Maybe the business stops with the original factory, which accepts to release the tooling (it doesn’t always happen, and a good contract certainly helps).
In this article we are making the assumption that the tooling is a mold for plastic injection, and that this mold needs to be moved from the toolmaker to the molding factory.
For those importers who want to minimize risks, the sequence to follow is as below:
1. BUYER: – All tooling should be signed off as complete and ready for use in production. Documentation should be in place showing the buyer has signed off each tool.
2. BUYER: – Tooling transfer plan including schedule should be generated and in place with all parties (the buyer, the toolmaker, and the receiving factory that will run the tools in mass production).
3. TOOLMAKER: – Tooling transfer documentation should include all tooling 2D drawings as well as 3D CAD data, release and transfer of tooling contract, preliminary settings for each tool as a guide.
4. BUYER/INSPECTION: – Buyer’s engineer or third party representative should check each tool against the transfer contract to ensure everything is correct and accountable for.
5. BUYER/TOOLMAKER: – Transfer readiness should include rust protection, general packaging protection, the correct shipping packaging (depending on shipping method, land, sea, or air). All this needs to be documented and checked during the packaging stage.
6. BUYER/TOOLMAKER: – Transfer of tools, depending on distance and method of transport. If local, the toolmaker may use their own truck, in which case the buyer’s engineer or third party representative should accompany the tools during transportation. If longer distances, the buyer is advised to arrange shipment through their own freight forwarder.
7. BUYER: – Ensure all documentation has been sent to the receiving factory ready for acceptance of transferred tools.
8. MOLDER/BUYER: – Upon receiving transferred tools, unpack tools and check off inventory to ensure everything has been delivered.
9. BUYER/INSPECTION: – Buyer’s engineer or third party representative should check each tool against the transfer contract to ensure everything is correct and accountable for.
10. MOLDER/BUYER: – Buyer’s engineer or third party representative should work with mold factory and run each tool in order to obtain samples for inspection.
11. BUYER: – Buyer’s engineer or third party representative should inspect initial sample and cross check against signed off samples from the toolmaker.
12. BUYER/MOLDER: – Once all tools have been accounted for, checked they are in good condition and are able to run in the factory’s machines, the buyer and the molding factory need to sign tool transfer contract. Through that contract they accept all tools, take responsibility for them, and acknowledge the buyer’s ownership rights (among other clauses).
13. BUYER: – Buyer’s engineer or third party representative should check storage facilities to ensure each tool will be stored correctly and safely and is easily retrievable when needed.
14. BUYER: – Buyer’s engineer or third party representative should check tool maintenance capabilities to ensure adequate skills and equipment are in-place to maintain the tools at the highest quality.
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Now, what if the tools are moved from an old (and bad) supplier to a new supplier? The old supplier probably won’t be as cooperative, so some steps will have to be skipped. And the buyer is advised to arrange transportation through his freight forwarder, to avoid contact between the 2 suppliers.
Maybe some readers can offer a few more tips for this type of situation?
Renaud,
If moving from one molder to another molder, which can be fraught with issues but sometimes has to happen.
I would ask for evidence of maintenance history, repair history and inspection reports from both if at all possible. Which could be doubtful. Doesn’t hurt to ask for though, and the reply will also give further indication of how the tooling/mold has been looked after and could give some prediction to it’s future performance.
Best Peter
Good idea. Thanks Peter. The professional companies will likely have this type of documents.
Very good checklist overall. A few added thoughts:
For the scenario of transferring a tool from the original tool builder to production:
1) if possible to run tryout parts at the tool builder, do so. Retain these samples.
2) Keep notes of the processing parameters used on the tryout run – machine tonnage, setup information, etc.
3) Once good parts have been run at the production factory, label several of the initial samples as master samples. Ask the factory to retain one, and the customer keeps one. These parts can be used to “referee” later disagreements about part quality problems. (I have asked every Chinese factory to do this, and none have done so on the first try. I don’t know why this has been so hard for them but it’s a great practice and helps both sides.)
When molders or stampers in the USA buy a tool, it is almost always part of the contract that the final tool payment isn’t due until an acceptable part is made at the production factory’s
location. (10% or more of the cost will be held back.) Quite often small adjustments must be made. I don’t know what the typical situation is in China but I would try to negotiate the same terms.
For the scenario when a tool is moved from one production source to another under polite conditions:
1. Ask about any spare parts for the mold or die, and get those, too. Often they are only useful on this tool. Similarly, ask about any special checking gages or other items dedicated to this job.
2. Ask to see the job run and retain samples. Record details of the production machine and details about setup. Treat as master samples. These will be the acceptance standard for the new production factory– they must do equal or better. (Or perhaps you know that there are problems now; and you can negotiate with the new factory to improve the tool.)
Best regards!
Brad
Excellent tips, thanks Brad!
I am not sure the mold factory will often accept to get 10% after the tools has been tested in the molding factory, but it is always good to ask.
Thanks again for adding to the checklist!