A common-sense goal of any business that utilizes heavy equipment is to realize both the maximum value and productivity of their machinery. Many of these machines improve a business’ efficiency or are completely relied on for productivity as a whole. Therefore, when mechanical problems arise, the question often comes up, “Rebuild or replace?”
Replacement refers to buying a brand new or refurbished, machine to replace that which is not operating at the time. Completely replacing a machine saves on time, which could be detrimental if a project has a tight deadline. However, in the long run, replacement is almost always a more cost-effective option.
Rebuilding a machine involves changing out all of the major, and many of the minor, components of a machine that have either worn out their use or will require replacement in the near future. Recalibrating and resetting certain functions are also commonly involved in the rebuilding process.
Before committing to either option, certain things need to be considered. For instance, it is important to verify the machine’s factory warranty. Most warranties cover the majority of maintenance costs for equipment within their first year of use. If a supplier does not provide at least a one- year warranty, it may even be more urgent to consider a new source.
For issues that arise after a warranty is expired, consider the 50/50 rule of equipment replacement. The 50% rule states that a full machine replacement is only necessary after the repairs or rebuilding costs exceed over half the cost of the replacement. The total cost should include labor expenses as well as parts to get an accurate calculation.
Due to innovations in technology, rebuild and repair costs will always continue to rise, generally between 30-50%. Recognizing and following the 50% rule will help determine the best times to choose to rebuild or replace.
Every business, and every machine, is different so tracking the condition and performance of your company’s heavy machinery is essential to keeping production lines operating safely and efficiently. If parts wear down without regular assessment, not only can production come to an abrupt halt, but work environments can become unsafe for employees operating the machinery. Scheduling routine maintenance, inspections, and knowing when the right time to replace or rebuild your equipment is essential to any manufacturing business.
Need to assess the state of your heavy machinery? Contact Integral Machine today! Our technicians are knowledgeable in a wide range of industries and can quickly help you determine the right course of action for your assets.