OPTIONS FOR DEALING WITH OLD MACHINES

Machines of all categories are valuable assets for any company, without which operation would often not be possible – at least not without restrictions. They are usually technically complex and powerful and optimized for a sometimes long service life due to their intended use.

If such a machine is to be removed from operation, it is therefore always a fundamental decision with far-reaching consequences that should not be taken lightly. Various indicators determine when a machine becomes an end-of-life machine whose continued operation would be problematic for economic reasons:

• The general performance no longer meets the wishes or objectives of the company.
• There is no way, or at least no economical way, to make the machine more efficient through modernization.
• Due to age and operating hours, wear-related downtime is becoming increasingly common. Many companies use a value of around 20 percent downtime in relation to the total machine time.
• For the same reason, repair and therefore maintenance costs increase, while profitability decreases.
• The previous system is no longer accurate enough due to wear and tear and/or the technical development of newer machines. This increases the reject rate and the product is not as high quality as it could be and is demanded by customers.
• It is becoming increasingly difficult to find personnel and/or the necessary tools and techniques to operate, maintain and repair the machine.
• Support (e.g. for control programs) has been discontinued or has become unreasonably expensive/complicated.
• The search for spare parts is becoming increasingly time-consuming and expensive. Sometimes there are only parts available from third-party manufacturers, but these do not match the quality of the original – or there are no replacements at all.
• Capital damage occurs, the repair of which is not worth the cost of a new purchase (regardless of whether it is a new or used machine).
• Energy consumption and pollutant emissions are no longer up to date. This makes operations expensive or runs counter to corporate objectives – such as image.
• The product or production department for which this machine was important will no longer be maintained in the company in the future.
• Thanks to new developments, the separate application areas of several machines can be combined in one new device. This saves significant costs in the medium to long term.

The more of these factors apply to a machine, the more likely it is, by definition, to become an end-of-life machine. This does not necessarily mean that the machine is no longer economically viable. However, it is no longer usable in its original operation and area of application.

DISASSEMBLY AND EXTRACTION: THE FIRST STEP

Regardless of the reasons why the old machine is to be discarded and whether there will be a new purchase, the first step after the decision is made is to extract the machine from the plant.

The procedure for mobile machines is very simple. They are simply moved in their entirety to an area of the company premises where they do not hinder operations. Alternatively, they can be stored in a rented warehouse. In this way, the machine can remain in place until further action has been initiated.

The approach for stationary machines – in production, for example – is sometimes much more complex. The following applies here

• bigger, heavier and more complex the machine,
• more restricted access options due to remodeling and
• The more cramped the surroundings,

the more (time-)consuming the extraction becomes.

As a general rule, it is advisable to choose times of low capacity utilization whenever possible. At least if the replacement with a new machine does not have the highest priority and cannot be postponed. The scheduling should also be done skillfully so that any installation of a new machine can follow seamlessly and without delay.

In addition, a company should realistically evaluate whether it can carry out the entire process itself in terms of technology and personnel. This mainly concerns the following work:

• The general technical removal of the machine from the operating environment. For example, by disconnecting electrical connections or removing it from digital control and monitoring systems.
• A sometimes necessary (partial) dismantling into several assemblies. Either to make the machine easier to handle or because this is the only way to move it out of the building in terms of dimensions.
• Moving the machine itself. Especially in view of the sometimes very large masses to be moved and the other machines required for this.

What a company can manage in-house depends on the personnel and technical equipment as well as the type, size and, above all, weight of the machine – or its assemblies.

Due to the sometimes high level of complexity and risk involved, companies should not improvise when in doubt, but rather seek professional support.

IN-HOUSE REUSE: A SIMPLE OPTION

A machine may no longer be usable in its previous position in the company’s process chain for various reasons. However, this does not necessarily mean that it is generally unusable for the company.

Because even machines that are no longer precise or powerful enough, for example, can sometimes still be used. This also applies if they simply no longer meet the technical requirements.

In many companies, the training company should be mentioned here first and foremost. Provided the machine is still operational, it can be used to impart valuable practical knowledge to apprentices and trainees. Not only in terms of general functionality and operation, but also related topics such as hazards and occupational safety or troubleshooting and fault rectification.

As old machines are also often less complex, but require more manual operation, adjustment, etc., they are often very well suited to providing newcomers with practical, basic know-how. At the same time, this is done without disrupting ongoing operations or having to rely on third parties.

 

However, this is not the only scenario in which old machines can still be used in-house:

• to offer “retro” or “classic” product lines
• as a reserve for breakdowns or maintenance work on the new machine
• to absorb predictable and unforeseeable peaks in demand
• as spare parts stock for similar machines in the house

The last point in particular can sometimes save high costs. In some cases, this is even the only option to be able to operate the other machines economically for a certain period of time.

In particular, if maintaining an operational condition does not cause (too high) costs or the old machine does not have to generate urgently needed funds through sale, it can be profitable for such situations.

Depending on how old the machine is and what role it plays in the company’s history, it would also be conceivable to turn it into an exhibit. For example, in an in-house museum or outdoors on the company premises; possibly after a thorough cleaning and other (purely external) visual improvements.

SELLING THE OLD MACHINE: MULTIPLE OPTIONS

Once again, the status of an old machine is always subjective and individually dependent on the requirements of the company using it. Depending on the type of machine, it can therefore still be a desirable object for a wide variety of interested parties. This even applies in cases where a machine is technically defective, but can at least function as a valuable spare parts carrier.

Possible customers include other companies in Germany and abroad as well as private individuals, such as collectors. For some machines, use by organizations or museums is also conceivable. In such cases, the distinction between profit-oriented sales and (charitable) donations is often blurred.

 

However, before such a sale can take place, it is necessary to discuss a number of issues:

• Is the machine wholly owned by the company and can it therefore be sold freely?
• Will the sale really not leave a gap in the company that cannot be filled in any other way? Is it really the best option in the medium to long term?
• How costly and time-consuming would a sale be? Can prospective buyers realistically be expected at all?
• Which channels should be used to find interested parties and initiate a sale?
• What would be a realistic selling price given the type, manufacturer, model and condition of the machine? Could a significantly better price be achieved through low-cost measures?
• Should the machine be sold as a whole or does it perhaps make more economic sense to dismantle it and sell its individual parts?
• Who will initiate the transfer and under what conditions? Who will bear the costs?
• When will the handover take place? Is it necessary to temporarily store the machine on the factory premises or at another location?
• If the machine has to be dismantled for extraction: Is this also sufficient to transport the old machine to the new owner or does it have to be dismantled into further parts and assemblies?
• Are there any warranty claims, customs formalities or similar to consider?
• Are there any important documents, sometimes in the company’s archives, that absolutely must be attached to the machine?

Last but not least, the payment modalities need to be clarified. In addition, the funds must be carefully reintegrated into the company’s accounting cycle.

ATTENTION!

The new EU Machinery Regulation also covers used machinery and can therefore be relevant for both the selling and the buying company.

DISPOSAL: RETURNING THE OLD MACHINE TO THE RAW MATERIALS CYCLE

Typically, companies will first try to initiate a sale for most old machines. Simply because this is the most economically sensible approach due to the return flow of funds – provided there is no question of further in-house use.

However, the will to sell does not automatically mean that there are interested parties, at least not within a sustainable time frame. Even if there are, there is a possibility that a sale will not be profitable for the company in view of the costs and/or effort involved.

 

In such cases, the old machine can be returned to the raw material cycle. In the vast majority of cases, this will take place via a specialized, certified disposal company.

As far as the handling and transportation procedure in particular is concerned, many of the necessary questions are the same as those that need to be answered before a sale. However, there are a few additional items:

• Does the old machine pose a particular hazard potential?
• Is there a cost-neutral solution for disposal? Are there perhaps providers who would pay for the scrap value?
• Can the machine be disposed of in its current state or is it necessary to clean it or remove operating fluids, for example? If so, who will carry out this task?

In particular, if the type of disposal guarantees a complete return to the raw material cycle, companies should also consider whether they can mention this fact positively as part of their image generation.

 

 

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