Ask the Expert

Jun 8, 2010

By Don Pollard
Parts Control and Inventory Specialist

The need of a major repair often leaves us in a difficult situation. For many people, making the choice between a rebuilt or a remanufactured part is really confusing. Here are some basic differences:

Rebuilt

A rebuilt is a product where a previously failed unit is used to create a rebuilt version. While the unit is most often completely disassembled and cleaned, in many cases only the parts that fail testing may be replaced, or common wear items. Most items included in the rebuild are not new, yet often the product is re-painted to appear “like” a new or remanufactured starter, which can be quite deceiving. Quality of rebuilds can vary between rebuilders as many are done in smaller shop environments instead of a standardized factory setting.  Ultimately a rebuilder is seeking only to replace the minimum required parts to pass their own quality control testing which may or may not be the same as the OEM specifications. Generally you are asked to return your old core so they can rebuild your part for another person, and you are charged for this core until you return it. This is a common, cost effective way of getting a starter that has been rebuilt in and that passes only minimum testing. Also, the product you receive may not be identical to the one you require. You may be trading in a heavy duty sealed starter and wind up with a can-use automotive, unsealed standard duty item. It will most likely work and fit alright, but rate of failure is higher than NEW or OEM products. In order to get max application coverage with as few items on the shelf as possible, the supplier will only carry the “can use” or “may fit” parts. Usually these will come with an attractive “no hassle” parts warranty to help backup and sell the product, which by nature is going to be more prone to failure. There is a higher chance you may wind up having to replace the same item again, if one of the components that “passed” minimal testing during rebuilding later fails.

Remanufactured

This is an entirely different process in which worn products are restored to like-new condition. This is done in a factory environment where a core, used, or discarded product is completely disassembled. All useable parts are cleaned, refurbished, and put into an inventory. A new product is then assembled from these parts using new, and even updated parts for all wearing components. Often only the basic frame-type items or shell are reused. This produces a unit equivalent and sometimes superior in performance and expected lifetime to the original OEM product. Someone not wanting to sacrifice quality in a more cost effective solution to the OEM or new version should consider this. Cost savings will not be enormous, but quality is not compromised. These products are unlikely to fail again within their expected lifetime, and will be backed with a reasonable parts warranty. Again care should be taken to ensure you are receiving the identical product, especially if yours is a heavy duty or contaminated type environment.

It is clear that the situation depends upon your requirement and what money you can spend on your equipment. The bottom line is that these options are cost-effective alternatives to buying new parts, but keep in mind that every situation is different. Sometimes better options are costly but can be well worth it.

May 26, 2010

By Doug Westlake
Manager – Rentals & Operator Training

During these trying economic times certain cost cutting measures need to be evaluated to ensure a positive bottom line. One measure that seems to come up is whether or not to train forklift operators. Although training can be time consuming and costly, there are many benefits that help not only individual employees, but also the company as a whole.

When trying to decide whether to train, forget the fact that it is the law in British Columbia. If there is an injury or, even worse a fatality, and the operator is not properly trained, WorkSafeBC can hold the company to full liability with costs so high it would devastate many businesses. 70% of all compensable injury claims are directly or indirectly related to the absence of training or improper training. The cost to train your operators today is very small compared to the possible hidden costs that come with not training them.

A good training program produces knowledgeable, confident operators, reduces workplace accidents and leads to more productivity on the job. In addition, more efficient operators can lower your operating costs. That’s because skilled operators are less prone to accidents that cause injuries and damage property. Without proper instruction your assets can be depreciated from untrained operators.

Properly trained, safe and productive forklift operators can lift a company’s credibility and good name. Training shows your operators that their safety and longevity is extremely important which increases employee morale.

So, to train or not to train? It’s easy to see! The small upfront cost of proper training far outweighs the highly variable cost that is associated with not training.

May 19, 2010

By Larry Helfrich
Vicepresident

When buying compact construction equipment, there are many factors that a buyer needs to take into account.

Although equipment may be a common purchase for many companies, the amount of thought and research behind the purchase doesn’t always correspond to the amount spent on the equipment. Since equipment is usually a large purchase with maintenance and repair costs down the road, you should take an adequate amount of time to make a buying decision:

Manufacturer

• Is the manufacturer well known and financially sound?
• Is the equipment I am buying the main focus of this manufacturer or is it something else (cars, trucks, larger equipment, buses, other)? No one is tops at everything.
• Is the manufacturer known for producing higher-end, more expensive products? (They probably are expensive if that’s the reputation)
• What is the manufacturer’s market share for the equipment I am buying?
• Is the manufacturer easy to deal with on warranty issues? Will they consider policy adjustments for an out-of-warranty situation?

Dealer

• Is the dealer financially sound?
• How long has the dealer been in business?
• How easy is it to talk to the manager?
• Are the sales staff and other employees friendly and knowledgeable?
• Is the product I am buying the main focus of the dealer?
• Will other customers who bought larger or more expensive equipment be the dealer’s priority?
• Does the dealer employee factory trained technicians?
• Does the dealer have mobile technicians?
• What is the labour rate for repairs compared to competitors? This can easily be a $30.00 to $50.00 per hour difference.
• How large is the inventory of equipment and parts for the equipment I am considering?
• Does the dealer have rentals available? Are rental rates reduced for a replacement machine while mine is being repaired?

 If you can answer positively about most of these points, you are very likely going to have greater confidence in your purchase decision and a positive ownership experience.