Presentation On The Importance of Remanufactured Components in Maintenance

1
Presentation OnThe Importance of
Remanufactured Components in Maintenance Life
Cycle Management

• BY
• Ajay Sinha
• EMD Locomotive Technologies Pvt. Ltd.

2
UNDERSTANDING REMANUFACTURING

• Remanufacturing is a production process of
  disassembly, cleaning, refurbishment and
  replacement of parts in worn, defective or
  obsolete products.
• Remanufacturing is the only option that requires
  a full treatment process like new manufacture
  to guarantee the performance of the finished
  object. 
• It is more appropriate for products that are
  technologically mature and where a large fraction
  of the product can be reused after refurbishment.

3
UNDERSTANDING REMANUFACTURING - GLOBAL PERSPECTIVE

• United States believes both developed and
  developing countries will profit from
  liberalizing barriers to trade in remanufactured
  products.
• Remanufacturing businesses have mostly grown in
  response to a business opportunity.

4
GLOBAL IMPORTANCE OF REMANUFACTURING

• Major industries globally Earthmoving,
  automotive parts, electronics, medical devices
  and information technology.
• Global trade crossed 100 billion
• Established production facilities in Europe,
  Latin America, Asia and Africa,
• Biggest market the United States.
• Estimated Compounded Annual Growth 5-7.
• In a period of global climate change,
  remanufacturing can
• reduce carbon emission
• thus, provide better environmental safety.

5
IS THERE A TYPICAL REMANUFACTURER?

• Remanufacturers are an ingenious, valuable and
  largely unrecognized set of companies driven by a
  clear grasp of the economic value of their
  services.
• Top flight remanufacturers are characteristically
  flexible and adaptable in coping with the
  business environment and the manufacturing task.
  Most describe themselves as service providers.

6
ADVANTAGES
7
Life Cycle Index of Remanufactured Engines

• SAVINGS EMISSIONS REDUCED
• 55 kg steel 565 kg CO2
• 8.3 kg aluminum 6.09 kg CO
• 113 kWh electric powers 1.01 kg NO x
• 3.985 kg SO x
• 288.725 kg solid waste
• Source Journal of Central South University of
  Technology, 2005

8
REMANUFACTURING VS. OVERHAULS

• Life Span Increase
• Remanufacturing 15-20 yrs.
• Overhauls 7- 9 yrs.

9
ESSENTIAL REQUIREMENTS FOR REMANUFACTURING

• sourcing end of life products ( called core)
• inspection and classification on arrival
• disassembly
• component testing
• remediation, repair or replacement
• re-assembly
• assembly, testing and dispatch.

10
CONCERNS IN REMANUFACTURING

• Essential goal in remanufacture is part
  component reuse.
• Difficult to promote design for remanufacture in
  isolation from other design considerations.
• Reliability is an important issue.
• Easier disassembly-minimize machine downtime
  maintenance labor cost.
• Remanufacture and life cost are impacted by
  expenses related to disassembly, reassembly and
  probability of process failure.

11
EFFECTIVE STRATEGIES

• Correct design of the product.
• Design rationale detail records to enable later
  generation designers to understand how a product
  works is crucial to remanufacturing.
• Combine business model of functional sales with
  correct product design and remanufacturing of the
  product - creates a state of the art system,
  optimizing the life cycle cost of the product.

12
HOW REMANUFACTURING IMPACTS LIFE CYCLE
MAINTENANCE

• 85-95 of scrap of old machinery - a new life.
• Help reduce environmental pressure on raw
  materials energy consumption.
• Cost less than half of a new product-energy
  requirements cost of materials are
  significantly lower.
• Downside for OEM - life cycles get longer as
  replacement is delayed yet can increase bottom
  line profit margins.
• Optimal to remanufacture 100 - new product is
  less profitable than the remanufactured product.
• If new product is more profitable- proportion of
  remanufacturing increases as service level
  increases.

13
HOW REMANUFACTURING IMPACTS LIFE CYCLE
MAINTENANCE

• Help in Supply Chain Process Improvements
  throughout multiple life cycles of parts
  components.
• Increasing reusability of components.
• Establishes next full life cycle of products
  components parts.

14
HOW REMANUFACTURING IMPACTS LIFE CYCLE
MAINTENANCE

• Helpful to replace individual sub assemblies at
  the right time with more up-to-date versions
  give a face lift to the product fetch better
  prices on a pre-owned market.
• Smart OEMs can use remanufacturing to gather
  valuable data for product improvements in design
  and function, and to enhance after-sales
  activities. This line of intelligence is lost if
  third parties grab the remanufacturing role.

15
SOME SUCCESS STORIES

• US navy has saved millions of dollars reduced
  maintenance costs.
• Remanufacture is now being considered as a
  solution for many vehicles such as the U.S.
  Army's Bradley.
• World-over auto sector accounts for 70-80
  remanufacturing business.
• UK remanufacturing industry employs more than
  50,000 people and contributes around 5 billion
  to GDP.

16
(No Transcript)
17
(No Transcript)
18

• Low emissions
• Fuel savings up to 25
• Lube oil savings over 50
• Increased all weather adhesion
• 90 parts commonality with existing fleet
• Predictable 184 day maintenance intervals
• 20 years of demonstrated 710 engine reliability

710ECO REPOWER BENEFITS
TM
19
IMPLICATIONS FOR INDIA

• Remanufacturing has or can have tremendous impact
  on India - it will affect severely its burgeoning
  industry and large-based consumers.
• Indian remanufacturing industry - yet to organize
  itself and chalk out effective strategies.
• Before India makes any binding commitments in the
  WTO, the issue needs to be widely debated across
  the country.
• Essential that Indian industry participation is
  secured as they could be a sole loser in this
  trade.

20

• THANK YOU