Project of the Month


"Almost like new"


Currently, long delivery times and price increases are shaping the landscape when it comes to purchasing new machinery and equipment. A genuine alternative is previously used machines.

KEY FIGURES


Immediate availability of machines

Reduction of investments (CapEx)

by ~ 35%

CURRENT SITUATION AND APPROACH


  • A company is investing in a new production machine for furniture parts and wants to start production soon. However, current delivery times are significantly longer than expected in the business plan. 
  • Inflation and associated price increases are straining the budget for capital expenditures (CapEx).

DESCRIPTION OF THE APPROACH


Due to the challenges described, the management decided to invest in used machines. The procedure is similar to that of investing in new equipment. Differences arise after the detailing of the technical concept and the calculation of the required capacities based on product, design, and quantity:

  • Specifications are divided into minimum requirements as well as technical features, which are desired but not essential.
  • Instead of supplier talks, research is conducted with used machinery dealers.
  • After pre-selection of possible equipment, inspection and evaluation take place.
  • Comparison of the technical specs of the equipment according to mandatory, desired, or unnecessary equipment features.
  • Pricing is based on the age, condition, market value and inflation index of the equipment.
  • After pre-selection of the equipment, a possible test run can be carried out.
  • Finally, the future service, maintenance, and inspection as well as assembly and training are clarified with the respective machine manufacturer.


After this process, the following steps are that of a new investment: plant layout with foundations and connections, data and material provision, assembly, training, ramp-up and handover to production.

RESULTS AND INSIGHT


In addition to immediate availability, especially younger used machines can often be procured 30 – 40% cheaper than comparable new machines, depending on condition and age. Another advantage is that the equipment has already been commissioned and, as such, any potential issues and difficulties may have been addressed already.


However, used machines may not always reflect the latest state-of-the-art technology and may not entirely match those of the technically desired equipment.


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