The Remanufacturing Gazette

Center for Remanufacturing and Reuse Newsletter

2010-06-15T11:04:00.000-05:00

I have been registered to Center for Remanufacturing and Reuse (CRR) newsletters for a while. I find it very useful and up-to-date to stay abreast of the developments in reman industry, particularly in Europe.

Newsletter for the month of June is just out and can be found here.

You can register for the forthcoming newsletters here and read the past issues here.

New book!

2010-05-05T19:53:00.002-05:00

My new book came out just two weeks ago! It's very exciting to finally being able to share all the knowledge I gathered through years of research and consulting. It's now on sale on amazon.com. This is a brief excerpt from the book:

In recent years, manufacturers are increasingly urged to reduce their waste and take steps for sustainable manufacturing practices. End-of-life or end-of-use product returns have increased considerably. Companies that manage their closed loop supply chains by taking advantage of returned products have the potential to make waste reduction and environmental regulations compliance profitable. However, as closed loop supply chains evolved swiftly and the value trapped in products increased dramatically, managers lacked the resources to turn on to create successful business models regarding their closed loop supply chains. OEMs have long been struggled with the question of how to organize product returns and remanufacturing to reap benefits from their product returns. Plagued by uncertainties in market and technology, this issue quickly moved up in companies’ strategic agendas. In this book, I provide a framework to guide companies in planning their closed loop supply chains and offer cases from industry. I walk them through a business model resulted from extensive data analysis and scientific research and give business model examples from Fortune-100 companies. Managers will find the relationship between brand capital, intellectual property and assets, and the decision to outsource intriguing. Cases conducted at companies such as Bosch, HP and Xerox provide various learning opportunities.

Remanufacturing and the circle economy

2010-03-17T09:16:00.000-05:00

A recent post by Joe Laur explains how a closed loop supply chain can help economy by reducing waste. A short excerpt:

.....
Xerox has been designing copiers to be disassembled, remanufactured, and recycled for years and gains over $400 million in annual direct-to-the-bottom-line savings from utilizing recovered components.

BMW and other automakers have found a compelling harvest of economic value in taking back automobiles at the end of their lifetime and designing them so that whole portions, such as dash panels and doors, can be recovered and re-used easily, as has Pratt and Whitney in the remanufacturing of aircraft engines

Continue reading here

Remanufactured toner cartridges save money and environment

2009-11-30T20:02:00.004-05:00

Remanufactured toner cartridges save money and environment:

An article from MITnews explains it brief and clear. Please read the article on how remanufactured toner cartridges can save you and your company money and help environment a bit too.

Xerox Remanufacturing in numbers

2009-11-23T17:08:00.004-05:00

Although a little bit dated, this document here explains Xerox's green efforts through remanfacturing, reuse and recycle. Good information on how much Xerox diverted from landfills and how much Xerox achieved to reuse products and components. This document also involves a brief overview of the brilliant tools they use for diagnosing returned products' condition.

Read or download it here

Conair creates 350 jobs thorugh remanufacturing

2009-11-20T09:41:00.002-05:00

Please read here how Conair will create 350 jobs through remanufacturing in Glendale.

UK leads the world in developing a remanufacturing standard

2009-11-17T10:55:00.001-05:00

A new standard is under development: new British Standard BS8887-220: Design for manufacture, assembly, disassembly and end-of-life processing - Part 220: Remanufacture.

What does it do? (From Center for remanufacturing and Reuse)

his standard that defines the processes by which used product is turned, through a series of manufacturing of steps, into a like new product. The document is available for public comment and can be accessed through the BSI website (link on left - may require registration).

Remanufacturing is a proven way to extend the life of a product, whilst guarantying levels of performance and lifetime expected of a new product. This benefits the customer by providing lower cost high quality product; the remanufacturer who can produce these products at a fraction of the cost of producing new products; and the environment through to reduced resource use.

There is currently no way of determining the quality of a remanufactured product meaning purchasers cannot guarantee that it will perform as good as new. Through development of this standard, we hope to address this issue, give confidence to buyers and improve the profile of this sector.

The standard is open for public comment meaning you can directly influence its contents. If you are not happy with some of the wording or wish to see changes, now is the time to do it. It is important that we get this standard right, future remanufacturing standards will be built on it and there generally isn’t an opportunity to change it for the next three years!

Meeting the UK climate change challenge: the contribution of resource efficiency

2009-11-16T10:53:00.002-05:00

This is the UK’s first research into how resource efficiency can help the UK meet its climate change targets. It shows that making better use of our natural resources could contribute as much as 10% of the target reduction in UK domestic GHG emissions.

In terms of consumer emissions (including imports), resource efficiency could reduce these by 8% by 2050.

Consumption behaviours dominate what can be done on the production side. The report identifies Lifetime Optimisation, Servicisation and Reman & Repair as strategies whose potential exceeds that of waste reduction, recycling and lean manufacturing by a factor of four.

From Center for remanufacturing and reuse, UK

Xerox develops chemical armour to extend the lifespan of printer components

2009-11-14T10:18:00.001-05:00

It will help remanufacturing practices too.

Here is the article from therecycler.com"

Xerox scientists have developed a new chemical armour that protects photoreceptors. A photoreceptor coated with the new "armour" can survive more than one million revolutions - nearly doubling its usable life. "The long life of the photoreceptor reduces the need for replacement cartridges" say Xerox.

New "super coating" hints at how smart materials, nanotechnology will influence future design of office and production products

Tasked with developing ways to extend the lifespan of printer components - and reduce their impact on the environment - a group of scientists at Xerox Corporation have developed a new chemical armour that protects photoreceptors, the light-sensitive elements in xerographic machines.

Protected from normal wear and tear, a photoreceptor coated with the new "armour" can survive more than one million revolutions - nearly doubling its usable life. "The long life of the photoreceptor reduces the need for replacement cartridges, enabling a 33 percent reduction in waste," said Yonn Rasmussen, Vice President of the Xerographic Component Systems Group. "Customers experience less down time, and therefore reduced interruptions to work flow, improved productivity, and fewer service calls."

The new photoreceptor works in the standard machine design with no additional hardware changes or added costs to the customer. This invention has broad applicability across Xerox's product portfolio and is being first implemented in the Xerox 4112™/4127™ light production monochrome printers.

Photoreceptors are multi-layer thin film devices that convert light into electrostatic images. They must be replaced periodically due to surface wear and scratches that can affect image quality.

"This novel long life overcoat is an example of cutting-edge chemistry at work that required both materials and process innovation," said Giuseppa DiPaola-Baranyi, laboratory manager for Materials Integration at the Xerox Research Centre of Canada. "The ultimate goal is to develop photoreceptors that will last the entire life of the machine. For example, when you scratch your hand and you heal, that's a biological process. We are looking at how to mimic nature and leverage our expertise in smart materials design and nanotechnology to create molecules for next-generation photoreceptors with self-healing capabilities."

A global, multi-disciplinary team from the Xerox Research Centre of Canada, the Xerographic Component Systems Group engineering team in Webster, N.Y. and the manufacturing team in Venray, The Netherlands, advanced the project from the pilot plant stage in Canada to production in Venray in less than one year, a record time for commercializing a new technology such as this.

Remanufacturing Industries Council

2009-11-12T22:26:00.002-05:00

Remanufacturing industry leaders in April 2001 agreed to form an alliance that would cross the lines of industry sectors to promote, protect and advance the entire remanufacturing industry. They created the Remanufacturing Industries Council (RIC), a coalition between individual companies, trade associations and interested government and academic organizations.

RIC VISION

Remanufacturing, "the ultimate form of recycling," will become a household word, known for its contributions to the environment and the economy
All remanufacturers will have access to state-of-the-art technologies and evaluation methods
An industry-wide network will effectively protect and advance the interests of remanufacturers everywhere.

You can find more info here

Remanufactured products cost lower than new ones: But how much lower?

2009-10-13T21:23:00.005-05:00

When I first started blogging, I have discussed the cost breakdown for labor and materials of new and remanufactured products. To reiterate, remanufactured products or parts cost lower than new ones with the same warranty. But how much lower? Well, it depends on the industry but article published in Wall Street provides an example. Bosch remanufactured spare parts are 40% cheaper than the new ones. Read more here.

Source: wallstreet.ro and Center for Remanufacturing and Reuse

Customer returns and economic downturn

2008-12-15T10:46:00.003-05:00

Customer returns have long been a headache for especially consumer goods companies. With big box retailer returns, and their brand name at stake they generally viewed returns as a cost center. However, with economic downturn, customer returns either going to be a bigger headache for these companies, or they must revise the way they look at returns. An article by Diane A. Mollenkopf that came out on IndustryWeek analyzes customer returns in this hard economic times. Some of her ideas are already featured in this blog previously, but it's good to revisit them and see a fresh perspective. Please read the article here.

Why Xerox won't be a GM in the future?

2008-11-24T17:59:00.004-05:00

A recent article published in Newsweek features Xerox's environmental initiatives and an interview with Xerox's CTO Sophie Vandebroek. Xerox, with its remanufacturing operations, has always been one of my favorite companies that I worked on. This article tells us about Xerox's seemingly counterintuitive R&D projects and products when you look at short-term gains. These products -disappearing ink, cartridgeless solid ink, etc...- may all be hits in the future when you consider the environmental impact and the green brand capital they can build and transform into market value.

Also, these are all complementary products. Xerox markets products with high initial investments, the more they improve their complementary product base by means of waste and cost (through reusability-the most logical manner), the more they earn in the long-term. That said, it seems that Xerox won't be the GM or Ford or Chrysler of the future, by simply foreseeing the trends in their industry and taking a proactive approach to deal with them when there is time.

Please read the article here.

John Deere buys ReGen Technologies

2008-11-13T14:38:00.006-05:00

Last year John Deere bought 50% of ReGen Technologies, a remanufacturing company specializing on remanufacturing of farm equipment and engines. Basically, ReGen was founded in 1998 to remanufacture engines for John Deere products in the United States and Canada.

One of the findings of my dissertation research was that the vertical integration in remanufacturing operations provides companies with more control over their operations and improves integration of reman business to overall business model of the company. Moreover, more control can also mean making strategic changes more agile so it can pave the way for growth oriented ventures. I reached these findings by interviewing many managers from organizations that have significant remanufacturing businesses and using that data to develop a model on organizational decisions for remanufacturing.

Now, if I tie the dots with my research and this recent case: In John Deere's case first came the 50% joint venture, which provides some control but not all the way- some companies might be better off with a joint venture like this, but it depends on their business objectives regarding remanufacturing. Then came the full integration. John Deere bought ReGen, named the new business Deere Reman. “We aspire to an enhanced leadership position in the remanufacturing business,” said Barry Schaffter, senior vice president of manufacturing in Deere’s Construction & Forestry division. Deere Reman will now have a global focus and operations will be fully integrated with remanufacturing operations.

No financial details on the deal were announced. Please read the full press release by John Deere here.

Am I really coming back?

2008-11-05T16:37:00.003-05:00

It has been a long time that things are slow in this blog. I have been very late on getting back to some people who contacted me for materials, discussions etc- I am sorry and I'll get back to them... Also, I will try to get back to my usual pace in updating my blog, which is interrupted by my dissertation and its defense for my committee. Unfortunately, I am still dealing with some scheduling issues on getting my PhD in hand, however, it's happening very very soon.

I want to make a smooth return to blogging by posting on responsible electronics recycling guidelines - nothing controversial or too complicated. If you go over these guidelines, you will notice both reuse and material recovery are emphasized and proper testing for refurbished equipment is urged. So it's actually not about "recycling" as we know it. It's product recovery, which spans remanufacturing, refurbishing, material recovery, material recycling, disposal, incineration.

Take a look at detailed guildelines here.

Mazda opens remanufacturing plant

2008-05-09T14:38:00.000-05:00

Please see this link for the article.

Visteon sells remanufacturing facilities

2008-02-05T13:22:00.001-05:00

Couple days ago Visteon sold its three facilities, one in US and two in Mexico. Transaction includes automotive reman facilities. There is not much information on the deal, motives etc. However, Visteon keeps its electronics remanufacturing facilities.

Read more here.

Remanufacturing video and an article

2008-01-17T09:55:00.000-05:00

Here is an article by Marsha Cohen on the basics of remanufacturing. There is nothing that regular readers of this blog does not know. However, I believe adding these articles once in a while may appeal to beginners who has just got interested in remanufacturing. If you need more of these beginners resources dig the blog deeper, there is more.

I have been looking for a video of a remanufacturing process for a while. I have just found this video. It is engine remanufacturing process at Recon Automotive Remanufacturers, Inc. I think it is informative because you can see inspection, cleaning, remanufacturing, and final assembly and test stages.

A laptop reborn

2008-01-06T12:03:00.000-05:00

A couple days ago this article by Liza Porteus Viana was published on portfolio.com. This article analyzes recycling initiatives at major OEMs and discusses how costs of recycling affect OEMs product recovery efforts.

Please read the full article and find my thoughts on this issue in the comments.

Some remanufacturing news

2007-12-21T09:56:00.000-05:00

Generally, remanufacturing operations are organized under manufacturing, plant management etc. When a company announces a separate division fo remanufacturing, I believe they are taking a more systematic approach to managing this high-margin, high-growth, environmentally-friendly operation- and express their commitment. Well it happened before with CAT, and now John Deere is reorganizing its remanufacturing operations that has long been going on under the name Phoenix Reman Group. The new name will be Deere Reman – Edmonton. Please read more about Deere Reman here.

Another company, ArvinMeritor, announced that they acquired Mascot Trucks, a remanufacturer of truck parts with six facilities and logistics centers in NA. ArvinMeritor started remanufacturing in 1982 with its axle carrier remanufacturing operations. Now, they consider remanufacturing as a major growth opportunity. Carsten Reinhardt, president of ArvinMeritor's Commercial Vehicle Systems business said, "This expansion of our remanufacturing business makes sense for our customers and aligns with our business strategy to grow the aftermarket business."

Happy holidays and a peaceful 2008!

Small businesses can make a big impact

2007-12-10T11:30:00.002-05:00

You always tend to think that big corporations has to keep up with environmental initiatives, and should do more to sustain environment than the small and medium sized enterprises. Well, in a way, that's correct, they are the ones, who should have the strictest compliance with regulations, and ambitious initiatives for environment, because their impact will simply be of a huge ordinance.

But... Think about this: 99% of all US companies are small business, says Jim Rise of Greener Computing. This makes more than 25 million small businesses, this time not individually but cumulatively having a huge impact on sustainability. The options to make-it-better are endless in their offices, from recycling paper and using "energy star" office equipment, to choosing OEMs that have end-of-use take back policies (for remanufacturing or recycling) for office equipment purchases.

This is a great article, read the full version "How Small-Office IT Can Make a Big Impact" here.

Cartridge remanufacturing and recycling saved $2 billion

2007-11-29T09:24:00.000-05:00

Xerox has issued a new report on sustainability initiatives. Since 1991, sustainbility program helped Xerox divert 2 billion pounds of waste from landfills thorugh reuse and recycling.

Please read this report here.

Buying used equipment

2007-10-10T15:33:00.000-05:00

I received this article on challenges of selling used equipment in the global arena. This article mainly talks of integrated circuit board fabrication and refurbishing, however many things in this article may be generalized to other industries.

For instance Mihin (whose speech is featured in this article , from BEST) puts the challenges of refurbishing equipment as "rebuilding OEM equipment to capabilities equal to OEM specifications; supplier response at factory location instead of single country location; providing capacity at a lower cost with recycled equipment; and project revenue to support local resources in country with fab(rication) locations." These also applies to many industries performing refurbishing activities abroad, nowadays China.

Then comes the advantages from customers-side. In Mihin's opinion "extending life of tools by refurbishing, lowering cost of ownership, local contact for warranty and maintenance..." Now, these are also valid benefits for many customers that use refurbished products, either they are consumer or business customers, though the benefits of using refurbished equipment is not limited to above.

Now, everybody in remanufacturing business and the academics in this field knows that neither the challenges nor the benefits can be squeezed into couple of sentences. The reason I started from this article is to make my point on a widely ignored component that presents challenges and in some cases benefits to the companies. I am talking about the behavioral part of buying used equipment. Although it is obvious that buying a used shoe and certified refurbished router/switcher is completely different, my thesis is attitude toward the first is generally at work when buying refurbished equipment of any kind. Does people really look at refurbished products as like new functioning products, or they see them as previously used, could-have-some-flaws type of products.

There is a lot to consumer behavior in remanufacturing/refurbishing but no research to date. But...keep coming back, there are news on this one soon.

Cycleon acquisition

2007-10-09T08:58:00.000-05:00

Last year in a post I talked about Cycleon, a reverse logistics third party that arranges returns services through prepaid mailers and also track and store informations about returns. Recently Cycleon joined (or acquired by) Reverse Logistics GmbH. Reverse Logistics group acquired two other reverse logistics companies recently, increased its coverage in Europe remarkably. No financial information is disclosed, but I wonder what was 100% of Cycleon worth for a private equity firm?

Please read more about the acquisition here.

CAT in Dow Jones Sustainability Index

2007-09-25T07:58:00.001-05:00

Although Dow Jones Sustainability Index is just 8 years-old, Caterpillar has already been recognized 7 consecutive times in this index. This index measures economic, social and environmental performance simultaneously and I believe it is one of the most realistic approaches in a rather problematic sustainability measurement debate. Please read more about this story here.