Measure

Integrating remanufacturing into production systems

Integrating remanufacturing into production systems
© Boggy, image #167136125, 2017, source: Fotolia.com
Resources:
Energy, Materials, Water, Carbon
Sector:
All manufacturing industries
Cost:
Low cost
Annual saving:
30 - 85 %
Payback time:
0.5 - 2 Year(s)
Resource savings: Raw material:
30 % to 85 % less input material might be needed to produce a remanufactured product compared to the new one
Resource savings: Energy:
In a water pump analysis (del Mariano Martinez, 2005), energy required in the remanufacturing scenario is around 20 times less than in the manufacturing setting; values correspond to 162.3 MJ and 8.12 MJ respectively
Associated cost savings: Raw material:
30 - 85%
Associated cost savings: Energy:
40 - 95%
Return on investment:
50 - 100%
Return on investment:
Costs associated with a remanufacturing business model vary greatly depending on the sector addressed; 50 % to 100 % higher profits have been reported on remanufactured versus new products (Guintini, 2013)
Total cost savings:
Cost savings can be generated from reduced or avoided input material, energy, and water otherwise used for full-cycle of product manufacturers
Co2 emission reduction:
45 % to 60 % lower carbon footprint in a cartridge remanufacturing scenario
Premises and operation areas:
Product and design, Production processes, Waste and recycling
Size of company:
Micro (less than 10), Small (less than 50), Medium (less than 250), Large (more than 250)
Advancement in applying resource efficiency measures:
Intermediate, Advanced
One off investment:
0 - 10000€
What is in it for you:
Can help improve profit margins compared to new products thanks to the lower of materials. Benefits can be passed on to end-users or customers.
Descriptive information:

Remanufacturing is the rebuilding, repairing or restoring of an end-of-life product or part to return it to like-new condition. Remanufactured products or parts should be backed by the same or similar level of warranty as new products. From a customer viewpoint, the remanufactured product can be considered the same as a new product.

Business models based on remanufacturing have been developed across countries, either as distinct companies or as separate departments in manufacturing companies. Remanufacturing allows the return of value and functionality to products or components once they have usefully served their design lifespan. Remanufacturing is widely applied in heavy industries, such as automotive and capital goods, where the value of individual products is generally high and remanufacturing can be economically advantageous. But remanufacturing has economic potential in other manufacturing industries as well, for example in the IT and furniture sectors.

Remanufacturing can become part of a manufacturer's value chain. Discarded products are free of charge, so the input cost is minimal. Manufacturing companies that implement a remanufacturing department can drastically reduce their resource consumption. 

At the most basic level, it is almost always less expensive to remanufacture a given product than to start the manufacturing process from scratch. Savings are accrued throughout the production process, from not needing to source new raw materials, to using simpler and shorter supply chains. The reduced cost of remanufacturing means that like-new products can be sold at a much lower price than newly-manufactured ones. These savings can range from 50 % to 90 % of the price of a comparable new product (Benoy, et al. 2014).

Remanufacturing activities lead to very significant overall resource savings by extending the use of products and avoiding the production of new ones.

Testimonial:

“Remanufacturing presents an opportunity to reduce operational costs significantly... There are many studies to draw on, but remanufacturing typically uses 85 % less energy than manufacturing and in some cases, can be twice as profitable." - Susanne Baker, senior climate and environment policy adviser at manufacturers’ organisation EEF, The Manufacturers Organisation, UK

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