Should you repair a spare part or purchase a new one?
When the maintenance area requests a part, you should first assess whether it is consumable or not. Consumables parts are not replaced or are finalized during the process. Spare parts are replaced and do not disappear from the machine during the process, having a material master record. In the case of consumable components, it is necessary to make the purchase request, whereas for replacement parts you can choose to request repair from the supplier.
In recent years, more companies have chosen to repair parts instead of replacing them. However, to decide whether it will be repaired or not, a series of variables must be evaluated and some calculations should be made in order to find out which option is most advantageous for the company at that time in terms of delivery time, costs, amongst others. In this text, we raise a few points that should be part of this analysis.
Check part warranty period
The first point you should check is whether the material is under warranty and, if so, you may be able to get a free replacement depending on the agreement made at the time of purchase.
If exchanging the part is an option, it is necessary to analyze its feasibility, which includes aspects such as time and logistics costs for shipping and delivery, for example. In some cases, the manufacturer picks up the defective material and delivers a new one free of charge, in other cases, it may be necessary to bear some freight cost. You should also identify what is not covered in the warranty, since some parts or components may not be included.
Repairing the part or buying a new one
When a part needs to be replaced and is out of warranty, you should evaluate whether it is really worth repairing or whether buying another one is the best option. To put that into practice, it is important to carry out a viability analysis that must contain variables such as the service life of the new part.
Make a quotation of the repair and multiply by the number of years that a new one would last. If the value of the repair is greater than the price of the new product, it is worth replacing rather than repairing it. Some companies consider that if the value of the maintenance is 60% of the value of a new one, the purchase must be made.
The Life Cycle Cost (LCC) covers several costs associated with the life cycle of an equipment, which also include acquisition costs as well as the support costs. When purchasing the material, inevitably, there will be costs due to your purchase, operation and maintenance activities.
Part delivery logistics
If you choose to repair the part, it will need to be sent to the factory and all costs involved in the cost-benefit analysis must be considered and calculated. Compare the delivery logistics of the new part to the repair of the current one. Check with the supplier if it will need to be imported, the lead time and the freight cost.
As already discussed in the blog, there are countless reasons to import indirect material compared to purchasing locally, including better product quality, since you can purchase indirect material produced from more advanced technologies and processes. There are more advantageous conditions that must be considered in the import process and in most cases, the cost of the piece is much lower compared to the local market.
Good relationship with suppliers
When making the decision of acquiring a new part or repairing the current one, it is essential to have a good relationship with your suppliers, who will help you to replace materials more quickly and without any hassle.
Before signing a contract, it is important to discuss and even include clauses on warranty, exchanges and repairs, so that, in case the material is defective or if repair is necessary, the situation is resolved in the best possible way.
Understand the needs of the maintenance team
It is necessary to understand all the needs of this sector and for that it is important to know the three different types of maintenance: preventive, corrective and predictive. For the three types, the purchasing team will be activated to ensure that maintenance is effective and occurs in a timely matter. Because of that, acknowledging the priorities of each demand is fundamental.
It is up to the buyer to monitor the estimated service life of the equipment and components, as well as to maintain constant contact with the operators to verify if the supplier’s usage recommendations are being followed. This is critical in a preventive approach, as it allows you to predict with more assertiveness the ideal time for an intervention.
In this article, we discuss some points that should be checked when deciding whether it is more beneficial for the company to repair a particular part or buy a new one. In each case, it is necessary to carefully analyze several factors (costs and lead time, for example) including the risks involved in each alternative. Maintaining efficient inventory management is essential for this assessment. The number of materials in stock can be an essential factor in your decision-making process.
A good relationship with quality suppliers is a key in the replacement or repair of parts. Late delivery can disrupt production days, generating unnecessary losses.
A good option is to rely on a company like Soluparts, specialized in negotiating with the main suppliers in the world, obtaining better commercial conditions in the acquisition of indirect materials.
We offer manufacturer’s warranty and put effort into avoiding any type of inconvenience in the event of part replacement. Talk to one of our experts for more information.