Series production of remanufactured components with high process times and costs.
Industrial Engineering.
Insight.

Series production of remanufactured components with high process times and costs.

The concept of remanufacturing seems to be lucrative in the automotive spare parts sector, especially for large series production quantities. However, prior to any component project, an economic and technical examination is advisable in order to avoid high process and manufacturing costs for remanufacturing in series.

The customer offer in the spare parts industry should always be cost-effective, especially for older vehicles, but still meet the quality and warranty requirements of the OEM (Original Equipment Manufacturer). Automobile manufacturers often encounter supply bottlenecks in the spare parts supply obligation and the associated cost problem of remanufacturing. Supplier contracts expire, products are discontinued, or suppliers are insolvent or have changed their product strategy. In terms of customer satisfaction and long-term customer loyalty, however, the company would still like to offer the customer original spare parts with a manufacturer’s guarantee.

Re-expansion as an alternative to remanufacturing

Since a renewed machine set-up or a relocation of production usually makes no sense from an economic point of view, the remanufacturing of components according to manufacturer’s specifications is an obvious option – but this is precisely where unforeseen costs often arise. The original manufacturer’s specifications usually contain extensive test criteria for fulfilling the series specifications. From a business point of view, however, these cannot be adopted from series production for many components with already low manufacturing costs – especially for older derivatives with lower spare parts requirements, no quantity effect is to be expected here.
In principle, a remanufactured component should correspond to the series specifications. In individual cases, however, the development and quality departments should be consulted about the extent to which they can be adapted for a remanufacturing process in order to minimise process costs. Also the new parts to be defined, as well as can and must exchange parts should be made in consultation with development experts.

From an economic point of view, it usually makes no sense to set up a new machine or realign production.

Weighing up costs in terms of delivery capability

Ultimately, it is the manufacturer’s responsibility to weigh up whether the possible additional costs can be borne by reconditioning the spare parts in terms of supply capability, or whether the business is to be lost to the Independent Aftermarket (IAM). An additional aspect for reprocessing is the cleaning up of the used parts market. Through a deposit system and the exchange principle, workshops are obliged to return the defective components to the manufacturer in exchange for a reconditioned spare part. This prevents used parts from being resold as used parts or remanufactured in poor quality by third-party suppliers, especially in the case of exhaust gas-relevant components.

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