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© itsallgood, #35547916, 2018, source: Fotolia.com

Engine manufacturer combines modular product design and remanufacturing

Resources:
Materials, Waste
Sector:
Manufacturing of machinery and equipment
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Premises and operation areas:
Product and design, Production processes, Supply operations
Size of company:
Large (more than 250)
Advancement in applying resource efficiency measures:
Advanced

As good as new... or better

  • A Finnish engine manufacturer has maximised material efficiency by combining modular product design to remanufacturing
  • Remanufactured engines can be better than the originals

AGCO Power makes diesel engines for many of the world’s leading manufacturers of tractors, other farm machinery and off-road machines, such as harvesters. At the company's factory in Nokia, Finland there is a long tradition of remanufacturing engines. Currently, some 1 000 engines are remanufactured per year.

Efficient remanufacturing is supported by modularity and standardisation in product design. Engines have a similar basic design and the majority of parts are common to all engine models. This also reduces waste in the production and ensures extensive stock with more choice and flexible solutions for the customer.

In the remanufacturing process, the majority of the components are reused, while some components are replaced with brand new ones and the old ones are recycled. Thanks to product development, some 15-20 % of components undergo some kind of improvement. Remanufactured engines are therefore often better than the original one. And the remanufacturing process requires up to 80 % less energy than manufacturing an entirely new engine, while extending the engine lifespan saves materials.

The AGCO remanufacturing process is run according to the standards of ISO9001 for quality and ISO14001 for the environment. 

Key benefits

  • Environmental benefits: the lifespan of engines is extended, materials are conserved in the product life cycle, and waste is reduced
  • The customer gets a remanufactured engine at a lower price but with the same guarantee as a new engine, and downtime due to the repair works is minimised
  • Remanufacturing is a profitable business – over the past decade, the volume of remanufactured units has doubled, and revenue tripled
  • For AGCO Power’s resellers, the remanufactured engines are a low-risk option for traditional service and maintenance work
Source

The Federation of Finnish Technology Industries, 2016, Examples of circular economy in companies: AGCO Power,  https://teknologiateollisuus.fi/sites/default/files/file_attachments/cas...

AGCO Corporation, 2018, Focus areas: Sustainability, https://www.agcocorp.com/commitment/sustainability/focus-areas/customers...

AGCO Power remanufacturing, 2017, Presentation from Tampere match-making event 11/23/2017, http://www.baltic.org/wp-content/uploads/2016/04/AGCO-Power-REMAN-2017_J...

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