Researchers Nasr and Varel estimate manufacturing generates about 60% of annual hazardous waste leading to pollution, high cost of landfills and waste of materials. In many countries, legislation is forcing manufacturers to reduce environmental impact of their production process and penalties can be high. Moreover, global competition requires companies to reduce product or component costs low while maintaining quality. Re-manufacturing process of rebuilding and refurbishing a part to make it reusable is what is helping companies address competitive, environmental and life extension issues. Re-manufacturing is highly prevalent strategy in industries ranging from automotive components to copiers, industrial pumps to furniture, electronics and many more. Re-manufacturing in many industries contributes healthy margins, some components even enjoying 30 to 60% of the original one.
Re-manufacturing is much more nuanced than simply recycling a part. Re-manufacturing process include several steps including:
- Core Management to get back defective component
- Assessment of parts for quality and usability
- Cleaning of all reusable components
- Repair or replace missing or broken or defective component
- Machining process to restore component or part
- Performance testing to ensure quality and safety
- Ship reassembled product for use with warranty assurance
Re-manufacturing components may meet or exceed OEM performance specifications, may be serviced or sold by third party, may carry a warranty different from OEM. While OEM recognize re-manufacturing is a highly profitable service line than new equipment and costs lower to the end user, management of re-manufacturing brings its own challenges. High transparency and control is required at all stages, right from production (right from selection & estimation of core Vs Non-core component), and warranty management.
Atarw’s Re-manufacturing (REMAN) software is designed to support complete re-manufacturing process. Atarw REMAN provides insights on sales, margins, availability, anticipated and current inventory of parts. REMAN software is a comprehensive solution covering BOM, re-manufacturing workflow, costing, kitting and assemblies, etc. REMAN is enabled for lot and serial number tracking, comes with multi-currency easy conversion and helps to capture landed cost and value add,and so on. REMAN software can:
- Combine a series of single items with labour and machining cost heads.
- Maintain alternate part number when part is not available or is out of stock.
- Reverse a rebuild job form assembly if required for another sale.
- Create full parts and labour service kits for each assembly. Details could include part number, labour times, machining etc.
- Update kit pricing whenever input material cost changes.
- GST transactions
- Track dates of rebuild for warranty management
- Manage deposit to invoice and credit returns.
- Track core units by customer or by part number.
- Apply different pricing structures: retail, trade and whole sale
- Manage outside or contract management.
Companies using ATARW REMAN reports are able to make informed decisions on areas such as:
- True cost of remanufactured item
- Time taken to remanufacture an item
- Cycle time and set-up cost implications
- Bottlenecks and holds ups
- Defect rates and replacement cost
Atarw’s REMAN can be Bar code or QR code enabled for inventory count, management of components and finished goods. REMAN can interface with standard accounting packages including SAP, Tally, etc to ensure seamless data visibility and decision making.
All in all, discover how you could unearth tons of $$$$ you are leaving on table, build a solid & profitable re-manufacturing business that can help you differentiate from others.