Chemical Engineering July 2013 - 44

Feature Report
purchase new equipment because
of cost considerations
or time. Used equipment may
also be the appropriate alternative
when time is a consideration,
either in terms of
delivery or usage. Used equipment
is frequently available
for immediate delivery, compared
to the relatively long
lead times that are typical
of new capital equipment. In
these cases, used equipment
may provide the optimal alternative
(Table 2).
The following scenarios
favor the purchasing of used
or refurbished equipment:
* When price is of prime importance
because of investment
limitations
* When the equipment is
needed immediately for an
emerging market
TABLE 2. COMPARISON OF NEW, USED AND REFURBISHED EQUIPMENT
New
Application
assistance
Design features
Delivery
Price
Mechanical
warranty
Parts
availability
Application
definition
and machine design
Unlimited
Refurbished
Limited
Some variations or
modifications possible
as part of the rebuild
process
4-8 months
100%
12 months from installation
or 18 months
from shipment
Right to return None
In-stock or readily
available
1-2 months
40-50% of new
90 days to a few
months
None
The fact that the unit
is being refurbished
indicates that parts
are available from the
OEM. Variable parts
availability
Aftermarket
technical
support
* When the equipment will be used
for a limited time, such as a feasibility
study or short-production run for
a special product or market
* When the equipment can be economically
modified to fit the purpose.
This will have a lot to do with
your ability to refurbish and maintain
the equipment
* When the process is routine, low
output or low risk. Infrequently
run equipment will have more opportunity
for PM and will be more
" forgiving "
Aftermarket support
Most companies that manufacture
process equipment would rather sell
new, but most are quite pleased to
support their older equipment.
Not every company has the same
business model. It is important to
know your equipment and the parts
supply chain.
The following are some areas of comparison
that must be considered when
deciding between new, refurbished or
used equipment:
Aftermarket parts. This is a veryimportant
consideration for maintenance
and repair turnaround time.
No matter if you are considering new
or used equipment, you should contact
the OEM to find out the availability
of parts. It is especially imporComplete
technical
support
Limited
Used
Limited to none
None (whatever is
in stock)
Immediate
20-40% of new
None ( " as is " )
10-30 days
Call OEM and find
out how available
parts are before purchasing.
Parts availability
diminishes
with time
None
tant to be sure you can obtain parts
when needed, especially if the OEM
is located in another country. Trying
to get parts for an overseas machine
made 30 years ago, for example, may
be a challenge. Is the company still
in business? Where are their foreign
offices? Some resourceful companies
have recognized a gap in the supply
chain and decided to manufacture
parts for older domestic or foreign
equipment. Once you find them, you
may be in good shape.
Aftermarket technical support.
With new equipment, the availability
of good aftersale support is almost
assured. But when purchasing used
equipment, the OEM may or may not
provide adequate technical support.
Find out if drawings, manuals and
parts lists are available. They may
charge $500 to $1,000 for these documents,
but it is a good investment to
ensure you have the right information
on hand.
Application assistance. There is no
doubt that a new equipment manufacturer
has a vested interest in guiding
you toward the correct equipment for
your application. Due to the nature of
chemical processing, subtle changes
in product characteristics can have
significant effects on the process and
the equipment, which is why process
guarantees are very rare. It is in the
best interest of the OEM to help you
42 CHEMICAL ENGINEERING WWW.CHE.COM JULY 2013
acquire equipment that will accommodate
your process.
Mechanical warranty. Mechanical
warranties are a certainty with new
equipment, but their real purpose
should not be overestimated. Warranties
are not substitutes for proper operation
or preventative maintenance
and should not be construed as process
guarantees. Mechanical warranties
provide benefits especially during
the initial startup period. If faults
arise, they will likely occur during the
initial warranty period.
Avoid surprises and disappointment
by verifying the specifics of the warranties
before purchasing.
Delivery timing. The delivery time
for used equipment is typically just
days, while new equipment will likely
be months.
Design features. Within limits, new
equipment can be outfitted with virtually
every manner of control, CIP
systems,
quick access to internal
parts, and other features to improve
productivity and uptime. Used equipment
is sold " as-is, " so you will either
need to find a good match or compromise
on the features you would like
to have. Refurbished equipment may
present some opportunities for upgrades
and modifications.
Price. New equipment is not expensive
if you buy into Edward Deming's
idea that you are purchasing total
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Chemical Engineering July 2013

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