Upgrading machine tools during a market uptick: these guidelines aim to help shops determine whether it is in their best interests to revive existing metalcutting equipment of to buy new machines

Modern Machine Shop, April, 2004 by Derek Korn

Manufacturing in the United States is picking up, but it certainly hasn't reached full stride. Optimistic shop owners are flipping through machine tool OEM catalogs, browsing Web sites and kicking tires at trade shows. But until shops observe a sustained flow of orders, offering solid evidence that the U.S. metalworking industry truly is back online, many will remain apprehensive about investing in new machines.

But what about breathing new life into tired metalcutting equipment already on the shop floor?

Savvy shops endeavor to upgrade their processes during an economic ebb so they're primed and ready for the flow. Restoring machine tools to OEM performance levels in the "off season" is a good example of prepping for prosperity. For the right piece of equipment, it offers new-machine performance at a fraction of new-machine cost.

For some shops, though, the recent market downturn was an anomaly. There simply were no funds for process improvement. In fact, it was all some shops could do to maintain machines that were still running, let alone upgrade their performance.

Now that the manufacturing sector is getting back on track, the time may be right to revive some old iron. But how do you choose a rebuilder? Would you be better off buying a new machine? Which of your machines should you restore?

These and other questions were addressed by Dave Green, vice president of sales and marketing for Kentucky Rebuild Corporation (Independence, Kentucky). OEM or third-party rebuilders like KRC can examine a machine and, after discerning desired performance and accuracy levels, they can make the mechanical repairs and/or electrical changes needed to extend the machine's production life. In addition, rebuilders often can customize machines with features specifically tailored to a shop's process.

Candid rebuilders will also tell you when it's not in your best interests to upgrade a machine.

Restoration Definitions

The term "rebuild" is commonly thrown around to describe a machine restored to OEM performance levels. However, there are varying degrees of machine restoration. This can lead to confusion when talking with rebuilders, as the industry has yet to standardize its restoration terminology.

To make things clear for its customers, KRC distinguishes three main categories: rebuild, retrofit and remanufacture. Each of these can, and often does, include some customization, depending on process requirements and part availability.

* A rebuild is a complete restoration of the machine's mechanical components. This is typically done to machines that are 10 to 15 years old and have a reliable CNC.

* A retrofit involves upgrading the control and replacing all the electronics, including wiring, servos and drives. This makes sense for mechanically sound machines that have a defective or outdated CNC. A CNC can be added to some manual machines.

* A remanufacture is a combination of both rebuild and retrofit, and it often is performed on machines costing in excess of $400,000 when new. "Remans" typically receive the highest degree of customization.

Are You A Candidate?

For most of KRC's projects, especially remanufactures, customers tend to be mid- to large-sized companies with a sizeable stable of machines. A small company considering restoration work must be sure it can endure the production that will be lost while its machine is being restored.

A shop that can't afford to take a machine offline for restoration may opt to purchase a new machine if it has available floorspace. That way, the existing machine can continue making chips while the new one is installed. The old machine also may have resale value, which could be put towards the purchase of a new machine.

According to Mr. Green, turnaround time for restoration projects can be quicker than new machine delivery. Typically:

* A remanufacture of big or complex machines takes 20 to 24 weeks.

* A rebuild takes 14 to 16 weeks.

* A retrofit takes anywhere from 1 to 10 weeks, depending on the how fast the rebuilder can take delivery of the control, the extent of wiring replacement, size of the machine and so on.

With the exception of retrofits, machines typically ore disassembled and transported to the rebuilder's facility for restoration. After completion, the machines are laser calibrated, and preliminary runoff is performed. They are then dismantled and delivered to the customer's shop for final runoff. The rebuilder will laser calibrate the machines again once they are installed at the customer's shop, unless the customer would rather leave that to its own maintenance crew.

Payment plans will vary from rebuilder to rebuilder. The payment schedule for many rebuilders includes an initial down payment to start work, a second payment due at first runoff and final payment contingent upon runoff at the customer's facility. While you maybe able to negotiate payment percentages for each stage, keep in mind that the initial down payment may not be enough to cover the rebuilder's own cost for the control.