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Replace or Repair?
Five Tips for Lowering Costs and Beating OEM Warranty Scams



Solving engineering problems and manufacturing issues is also a Green endeavor, as efficient plants use less energy.

Some manufacturers are enjoying enormous savings simply by contracting with expert repair firms, such as PSI Repair Services, Inc. of Livonia, Michigan.

The overall efficiency of a manufacturing plant is an outcome that should not be taken lightly. PSI takes pride in reducing processes to an absolute minimum of movement, with no wasted energy or time.

PSI’s state-of-the-art environment operates entirely under lean manufacturing principles and is ISO 9001 and 9002 certified. Each piece is bar-coded and tracked through the entire process so that a customer can be updated on the status of a job at any time.


Despite these bumpy economic times, some manufacturers are operating at full speed. So when a control board or motor in an assembly line robot malfunctions, plant managers must take action. But not until they have answered one all-important question: Replace or repair?

The answer to this question may seem like a no-brainer, especially when budgets and revenues are tight. Yet industry experts say many corporations that rely on electronic, hydraulic and precision mechanical components often needlessly replace expensive parts because they are in the dark about OEM warranty details.

Or they simply have not taken the time to consider the advantages of repair: lower annual costs, reduced inventory, and even a Green, or environmental, dividend: The carbon footprint for a repair is tiny compared to making a new part.

What follows are Five Tips designed to help manufacturers save money, shrink carbon footprints and improve production efficiency.

1) REDUCE COSTS

Plant managers in the auto industry know that when a pilot valve breaks down they will pay about $6,165 to replace it. Yet a survey reveals that by outsourcing repairs to a qualified firm, the valve can be repaired – and possibly made better than new – at a cost of about $760. That’s a mere 12 percent of the price for a new unit.

The cost to replace a broken spindle motor in that same automotive plant will cost about $18,000. The price to repair it? A little under $5,000 – or 73 percent less than the expenditure for a new piece.

Some manufacturers are enjoying enormous savings simply by contracting with expert repair firms, such as PSI Repair Services, Inc. of Livonia, Michigan. Maybe leaders in various manufacturing arenas don’t toot that horn because they don’t want their competitors to enjoy the same savings. That’s one way to beat the competition – spend less. Yet in good times or bad, who can afford to ignore thrifty solutions to ongoing maintenance needs?

Savings aren’t merely a result of paying less for repairs. Plant managers say their assembly lines run more efficiently now that the Livonia-based firm has assigned an in-house account representative to the site. The rep is not there to sell services. Due to the enormous volume and range of the contractor’s repair experience – electronics, process instrumentation, hydraulics, motors, ballscrews and more – the rep is on site to monitor repair needs and identify flaws in production lines. When problems arise, the firm alerts the clients to the specific weakness and then offers a permanent cost-saving solution. Operation costs drop when equipment performance improves.

2) GO GREEN OR GO BROKE

Bob Phillips, Vice President of the 40-year-old Michigan firm, says the overall efficiency of a manufacturing plant is an outcome that should not be taken lightly. It not only saves money but helps reduce global pollution. “When you look at what it takes to manufacture a new robot, you’ve got to realize companies from all over the world are contributing elements to the project and each is putting out some kind of pollutant. Yet if we’re repairing a robot, the carbon footprint is virtually nil. We don’t want to just fix things. We’d like to help fix the planet.”

Solving engineering problems and manufacturing issues is also a Green endeavor. For example, an assembly line at a local company was continually going down and operating at only 65 percent capacity. By seeing the big picture and going to the heart of the matter – not just repairing one malfunctioning part – PSI was able to bring productivity up to 90 percent. Efficient plants use less energy. Go Green and your company will earn a reputation for being a good neighbor.

The company even offers a website where customers can buy repairs online, ask questions, get real-time answers, and generally reduce paper flow at http://www.psirepair.com/.

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