Remanufacturing to reduce costs and increase profit

Remanufacturing provides a way to offer customers a less expensive alternative to new replacement parts and equipment while maintaining profitability to the OEM and maintaining customer loyalty.

The problem lies within the costs and complexities of remanufacturing old parts and equipment and becomes a barrier to an OEMs offering a remanufacturing program. First there is the issue of brining old damaged equipment that is often covered in grease and dirt into a clean manufacturing facility. Next is the cost of purchasing the high-pressure spray equipment, dip tanks, along with the costs of installing the equipment inside the facility. This dose not consider the costs of replacing cleaning fluids or the removal and disposal of used cleaning solutions and the time to manage and operate another manufacturing process.

Disassembly is far different then manufacturing and requires a separate team of experienced professional that can efficiently take apart a piece of equipment and organize it into similar components to make reassembly easy. There also needs to exist the ability to return he individual components down to their bare metal state so that the part may be refinished and reassembled into a saleable item.

Offsite Remanufacturing Companies

A cost-effective method to take a used product from customer return to ready to reassemble is to out source the remanufacturing process. Companies like Tygart Industries have created Remanufacturing Centers that were purpose built to remove built up dirt and grease on equipment with multiple cleaning stations and dip tanks as well as developing an experience team to disassemble components and equipment into organized parts for further cleaning and metal preparation.

Their in-house machine shop to provides additional services to repair or remake parts of an assembly. The finished product is organized bins of clean ready to be assembled parts without the hassles or costs inhouse remanufacturing would incur.

The result is a cost effective and managed process that eliminates the mess and expense of remanufacturing a product and allow a company to open new revenue channels to customers by offering remanufactured parts to its clients.

Courtesy: Jeff Blasinsky | Tygart Industries | https://www.t-tygart.com/