November 29, 2016
In a world where most technology is virtually disposable, it’s natural to think that if a corrugated machine is on the fritz or stops working, your company should simply replace it. Out with the old, in with the new, right? After all, we’ve been trained to think that the shiny new machine will not only look nicer, but also work more efficiently or be more cost-effective in the long run. Certainly in some cases this could be true. Not all pieces of equipment are candidates for rebuilds, with some machines designed as “throwaways” from the beginning.
In contrast, some machines prove to be true workhorses. Take a 30-year-old Langston or Ward as an example. Whether the need is a full-scale rebuild on a flexo-folder-gluer or a well-planned plant tuneup on a rotary die-cutter, strategic work on older machines can enable them to compete with the best new machines available. Unfortunately, not all plants know this trick, and some just don’t believe it.
Overcome Common Misconceptions
Before venturing in one direction or the other, business leaders need to get over the notion that they have to invest big capital into new technology because their machines are “old.” The latest technology can be added to an older machine at a fraction of the cost. In addition, a rebuild can be as involved as replacing every component except the frame and cross ties. That means while the machine may still look old, the fact is, it is often better than new. If you want it to look new, this can be accomplished as well if you choose the right vendor.
Many times, though, a complete rebuild is not necessary, and thus the purchase of an entirely new machine would not be frugal or business-savvy in those instances. That’s why it is critical to first understand the current problem and plant needs. Typically, the age and condition of the machine will determine when a rebuild or new purchase needs to occur. Gears and bearings will start to wear, and speeds will slow down. The fix might even be as simple as replacing a part. If you are not certain about the problem or need, a vendor such as SUN Automation can help you find the right solution and remain unbiased, as they offer both options to rebuild or buy a new machine. In the end, it’s about what you truly need.
With that in mind, you’ll need to ask yourself a few questions. What are you currently running, and what registration do you have to hold to meet plant demand? At what speeds can you afford to run? Can a simple retrofit solve the current problem? Questions such as these will help determine how much of a rebuild is necessary. It’s also not necessary on a rebuild to solve all the problems at once. For instance, if the primary issue is related to machine productivity, then a simple retrofit or upgrade may be all that’s needed. For a fraction of the cost of buying a new machine, all that may be required to boost productivity is to replace an old kicker table with a new feeder.
When in doubt, reach out to your vendors for guidance.
Why Rebuild?
As much of the decision is also based on budget, it’s important to understand all the associated costs. There is a reason why many independents opt to rebuild over buying new when needed. The following are five key reasons rebuilds prevail.
1. Shorten the learning curve. Learning curves are shorter on rebuilds because it’s still the same machine. Maintenance teams are prepared and experienced to handle regular checks and fixes. Also, any new technology upgrades can be quickly learned, as they’re the only part of the machine that might be new.
When you have a new machine installed, it will take operators much more time to get up to speed on the protocol and nuances of the new technology. It’s no longer just one new piece, but every gear and function could be different. It also takes extra time for maintenance workers to learn the upkeep processes for new machines. When more training is needed, that translates into more downtime in your operations and more savings lost. You may even have to shut down your converting line to get everyone up to speed.
With such a tremendous learning curve, you also run the risk of constantly calling technical support. That adds up, with extra expenses for airfare, hotel stays, and other incidentals that come along with bringing in outside help to get processes flowing again—not to mention further downtime accrued waiting for external support.
2. Decrease costs. Shorter learning curves and greater uptime add quickly to the bottom line, but there are other ways a machine rebuild or retrofit can save you money in the long run. For one, the machine is already an asset and inherently won’t cost as much to rebuild as buying new. Prices can vary from vendor to vendor, and the ultimate savings depend on labor pricing, condition of the machine, or whether the rebuild is intended to exceed original equipment manufacturer (OEM) performance levels. That said, on average, SUN customers save about 60 percent over a new machine purchase when a rebuild is performed on-site, and about 40 percent if the rebuild is done at our facility. Regardless of the situation or vendor, a rebuild is still almost always much less expensive than the purchase of a new machine.
There are often overlooked costs associated with buying a new machine. For example, the new machine could require new foundation, rigging, and utilities. It’s important to consider all facets of the new machine install. Furthermore, electrical lines and pipes may also need to be relocated to fit the new machine. In some instances, other machines on the plant floor may need to be moved to make room—adding further costs and time. With a rebuild, everything stays as is, since it’s the same machine.
New machines are also more expensive simply because all costs are incurred at one time. That includes purchasing new spare parts so maintenance teams can react when needed. With regard to parts, consider also where the machine is built and serviced. A new machine may not need anything straightaway, but all equipment must be serviced and have wear parts replaced with some frequency, so consider the suppliers’ inventory and lead time.
With a rebuild, you eliminate many of these challenges and won’t incur any additional costs. In addition, you can pay for only what you need and can take on the rebuild in stages without losing productivity. This fact is critical for budget-sensitive companies.
3. Rebuild on your terms. By not needing to incur all the costs at once, companies can extend their budget and the life of their machine. It may be more cost-effective and provide greater flexibility having the rebuild done on-site. Depending on the age and condition of the existing machine, as well as what specific parts need to be replaced, the process can be controlled quite nicely. For example, a four-color machine rebuild can be scheduled quarterly. The work can be done in stages so as to not interrupt productivity too much and be completed by the end of the year. In contrast, simple upgrades and retrofits can be accomplished even faster. In a few business days, a new vacuum transfer or digital register can make all the difference.
4. Reap the same benefits. Again, you can add just about any new technology to existing machines. And Ward machines can also be brought back to OEM specifications. So, before you throw out your existing machine, make sure its replacement isn’t just dressed up to look enhanced. While it may look better on the surface, that doesn’t necessarily mean it is.
However, if looks don’t matter to you, then the warranty surely will. Having the safeguards of a warranty is invaluable throughout the life cycle of a converting machine. Another common misconception is that rebuilds and new machines differ in their warranty offers. The fact is, the warranty you get on a new machine isn’t always worth the extra dollars spent. For example, with SUN you get the same one-year warranty on each part replaced; it’s no different from buying new, except for the expenditure.
But even then, the next misconception is that older machines will need to be replaced sooner than just buying new anyway. This, too, is not the case. On average, older machines prove to last 25–30 years from initial purchase; some last even longer. A rebuild on those machines keeps them operational an additional 15–20 years. The same cannot be said for newer machines, as their longevity is unproven.
5. Get operations up and running more quickly. If rebuilds cost less, provide greater flexibility, and generally run the same as a new machine, then it must simply take longer to achieve all these benefits. We’ve already established that a complete rebuild is often easier and faster than a new installation. It also makes future maintenance much easier overall.
However, you may say that new equipment can be installed and implemented within seven days, whereas a complete rebuild can take up to two weeks. That statement is true, but you have to consider it can take up to six months for a new machine to be delivered. This time is often overlooked when comparing lead times. Upon receipt of an order for an onsite rebuild, replacement parts can be delivered within two to three months—half the time it takes for a new install.
Where you buy your equipment can also put a dent in your timeline. Having domestic service and support can greatly improve any foreign delays. As mentioned earlier, whether new or rebuilt, all machines need to be maintained, and parts that wear out need to be replaced. When purchasing overseas, you often have at least a one-day delay trying to get hold of someone to help.
Before venturing in one direction or the other, business leaders need to get over the notion that they have to invest big capital into new technology because their machines are “old.” The latest technology can be added to an older machine at a fraction of the cost.
Don’t Judge a Book by Its Cover
In the end, there are many common misconceptions about rebuilds. One big challenge is getting over the misconception that it will still look old and therefore perform the same as before. Once you are able to look at both options equally, it’s easier to see advantages of a rebuild. In either situation, though, defining the problem and determining the budget and timeline will further help uncover the right solution.
When in doubt, reach out to your vendors and seek guidance. A reputable vendor should be able to offer the right solution and direct you to which option is best for your operations. If your vendor does not provide rebuilds as an option, seek out additional support before making a decision. In the end, you may be better off optimizing what you already own.
Mark Peyton is capital projects manager at SUN Automation Group. He can be reached at mark.peyton@sunautomation.com.
