Purchasing used equipment one step at a time; with a plethora of used equipment available to foundries, the AFS Plant Engineering Committee provides a step-by-step plan to using this resource.

Your foundry needs to replace old run-down equipment or maybe increase capacity, but the check-book is tight and time is short. The equipment is needed immediately, if not yesterday, and the slack time worked into your project has evaporated.

Two options are available to you. The first, ordering new equipment, is not only expensive, but the lead time is too long. The next option is buying a piece of used equipment,and perhaps rebuilding it yourself. Your workers regularly perform miracles with your existing equipment, so maybe they could work magic on something else.

But risks abound. Is your ideal piece of equipment available? Is the quality of the equipment what you expect and worth what you would pay? What unforeseen problems in time, money and production might arise?

During the past two decades, the foundry population in North America has been declining, resulting in the availability of a large amount of "pre-owned" and "used" equipment. In addition, the development and installation of new technologies has made some older equipment obsolete.

The basic structural elements found in a great deal of older foundry equipment is still usable. With this basis, many foundries consider used equipment as a viable option when adding to their operation. But, with all the hopes of theoretically saving money and time by utilizing used equipment, this course of action is not without its challenges. Successfully finding, purchasing, refurbishing, installing, starting-up and maintaining used equipment requires brutally honest evaluations, tough negotiating, hard work, risk management and perhaps some luck.

The following is a step-by-step outline for the acquisition of used equipment.

Establish Specifications

1 This step is identical to what would be required for any piece of equipment entering a foundry - new, used or rebuilt. No matter how extensive your specifications are, certain questions always need to be asked.

1. What capacity is needed for the machine you require?

2. What compatibility issues exist with your current foundry and equipment?

3. Do you favor any special brand? Have you used the equipment you are considering before? If so, are there any changes you would make to make it run better, or easier to maintain?

4. Are you changing processes?

5. If the equipment requires a change in tooling, are there any brands/models which would be compatible with your existing tooling?

6. Do you have any special ergonomics or OSHA considerations such as noise, dust, etc.?

7. What limitations do you have? Are there space and height restrictions, utilities (electrical, air, water), upstream systems or downstream systems?

The key to the assessment is to create balance. Creating specifications is similar to solving a puzzle, in that your various specifications must all fit together.

Cost Evaluation

2 New equipment is easier to cost then used or re-built equipment, but the allure of the used route is the savings. To determine if you should go the used equipment route, you must pinpoint what your expected costs will be.

Initial costs:

Equipment itself Inspection Rigging Transportation and storage Replacing known missing and obsolete parts Rebuilding with labor, materials, sub-contracting, clean-up and testing

Installation, start-up and operating costs:

Time and materials for installation Time to start-up - direct manpower and production losses Training costs Ongoing maintenance - higher for older equipment Costs of non-warranty service Depreciation Borrowing variables - amount of loan and rate Limitation to leasing possibilities

Where to Go

3 The next step is locating used equipment. Various resources include advertisements, auctions, dealers, agents, or original manufacturers. But when searching for your ideal equipment, maintain the image of the puzzle and whether or not the available equipment will fit into your operation.

Many pieces of equipment that are in demand, are not available on the used equipment market. Therefore, what is available may be a compromise of the type of equipment you really want. Although new equipment can be designed to meet your needs specifically, used equipment also can be modified from its original design to suit your specific needs.

After locating a piece of equipment, proceed to an inspection. The first part of the inspection is to quiz the seller intensely on the history of the equipment. Discuss any modifications made, previous owners, and most importantly, find the nameplate information and call the original equipment manufacturer (OEM) for more information. Machine history is often fairly well documented by OEM machine build records.

The next stage in the inspection is to have someone with experience physically inspect the equipment. During this inspection, take a lot of pictures, including a videotape if possible. By bringing back pictures, others at your facility can inspect the equipment from a distance and help you determine if this is a piece to your puzzle.

During inspection, review the major commercial items on the equipment. Are they still being produced and are spares available? In addition, be sure to inspect the ancillary equipment which may not be attached directly to the major hulk - motors, starters, control panels, hydraulic pumps and material handling devices. Lastly, look at the electronics and control equipment. Probably most of it will be inoperable, damaged or obsolete. You need to be aware of what will be facing your electrical/control engineers.

The Purchase

4 Once you have specifically identified what you are going to buy, you are ready for the fourth step in the process - the purchase of the equipment. At this time, price, availability, terms and conditions will be determined. As the purchaser, you don't get what you deserve, you get what you negotiate. Many times the used equipment does not have any real or hard cost associated with it. In all probability, it was bought along with a collection of other equipment, maybe a complete foundry. Value is strictly what is negotiated.

Rigging and Shipping

5 Used equipment is typically sold on an "As is, where is" basis. A third party is often employed to remove, lift and place the equipment on a track. When choosing a rigger, define to what extent the equipment will be broken down before you get bids. If you are buying a piece of equipment which is located in a foundry that is being dismembered, the lead time required to get your treasure onto a truck may be days or even weeks longer than you might expect.

Shipping should be straightforward. But make sure your loads are properly supported, tied down and fully covered. And, don't overlook storage charges on either end, if applicable.

Refurbishing

6 Instances rarely occur when used equipment is purchased, easily installed and then ready to use. But, in most cases, some form of refurbishing - by either the foundry, the original manufacturer or a third party - is needed.

Foundries must be cautious of rebuilding beyond their level of capabilities. Many find themselves short of competent maintenance staff trained in electronics, controls or hydraulics. If you rebuild in-house, be sure that you have the area, tools, measuring equipment, documentation and testing devices required.

When deficiencies are found in the equipment during rebuilding, decisions must be made to either recondition or replace the parts with new. A risk assessment should be made in each case as to the tradeoffs and consequences if the salvaged item fails prematurely. One option to the cost of individual spare parts is to buy two machine carcasses, scavenging parts from both to build one.

Some assemblies and sub-assemblies, like motors, clutches and speed reducers, may have to be shipped to a specialist to rebuild. If you use a third party to rebuild all or part of the used equipment you purchased, some level of warranties are generally available. The prices for original manufacturer or professional third party rebuilt equipment can sometimes run 60-80% of new, with a warranty. If you choose to buy a rebuilt machine, the rebuilder also may be more willing to provide you with technical assistance.

Installation and Start-up

7 For installation and start-up, the process is the same as with new equipment - utilize the installation and foundation drawings. Different equipment has different installation procedures for leveling, adjusting, etc., and these specifications are needed before starting the job. Many times the used equipment you purchased has drawings made specifically for it.

A video or pictures of the machine before its removal from production can prove invaluable during re-installation in your foundry. Consider investing in a paid service call from the original manufacturer to check over your installation and help with the start-up.

Production Support

8 This can be a simple step for the foundry as the foundation should have been established during the earlier stages. Usable operating and maintenance manuals are a must. If your unit does not have any, contact the OEM. Spare part identification and listings are of particular value, but for older equipment, this can be a problem.

Reexamination 

9 The last step in the process is to reexamine the initial evaluation made when the equipment was purchased. With used equipment, a foundry must be diligent in keeping careful track of the total costs associated with its acquisition, refurbishment, installation and start-up. The cost accounting associated with new equipment is generally easier, but you believed the used route had financial advantages. After the equipment has been in successful operation for a period of time, go back and review the total costs, time and effort.

We do not buy machines, new or used, for themselves. We buy them for what they can do for us.

RELATED ARTICLE: A New vs Rebuilt Equipment Cost Comparison

The following cost comparison of the used 26-in. machine to the new 22-in. and 30-in. machines is made because new 26-in. machines are not available. The buyer of the used machine requires 40 lb per sq in. of pressure from its jolt-squeeze machine for its molds, which makes the 26-in. and 30-in. machines acceptable for this application, and the 22-in. marginal. But, for the comparison of cost, all three options are shown.

[TABULAR DATA OMITTED]

RELATED ARTICLE: Wagner Rebuilds to Success

Wagner Castings, Inc., a 1000-employee ductile iron-foundry in Decatur, Illinois, bought and refurbished a sand muller to add to its molding line. Operating between a Disa line and refurbished conveyors, this muller has been in operation at the foundry for 14 months without any complications.

Wagner acquired the equipment from a used equipment reseller. Before the purchase, the foundry conducted an inspection of the muller by its maintenance superintendents, Tom Dunn and Larry Paradee, and its Plant Engineering Manager, Brian Marshall. At this point, Wagner also brought in Simpson Technologies, Inc., the original manufacturer of the muller, to inspect the machine. Since Simpson would be the one to refurbish the equipment, Wagner wanted an opinion on the quality of the muller in addition to an estimate on the rebuilding cost.

"During the inspection, we wanted to make sure the major components were usable," said Marshall. "It was important that we didn't have to replace the big ticket items. If the control panel or electrical was worn out it would have become a major issue. But beyond that, we had to make sure the equipment wasn't outdated for parts and refurbishment."

Wagner initially decided to pursue the used route for this equipment because a new muller was out of its cost range. Normally, Wagner's choice between new and used depends only on what fits best for its situation.

The initial cost of the machine when Wagner purchased it from the reseller was $35,000, as it was sitting. This meant, as with most used equipment, Wagner had to arrange for the transportation of the equipment to Simpson, and then back to its foundry.

At this point Simpson took over the process. They picked up the equipment and began the refurbishment to Wagner's specifications. Visually, Simpson remade the equipment to new by cleaning it and repainting. Within the working parts, Simpson replaced the discharge doors, the ceramic floor and the dusthood, and remade the gearbox.

Once the refurbishment was complete, Simpson transported the machine to Wagner. The time from inspection to delivery was six months, but according to Wagner, if its plant had been prepared better, delivery could have been in half the time. The total cost of the refurbishment by Simpson was about $125,000, resulting in a total cost of approximately $160,000 for the used equipment.

"We always consider used equipment whether or not cost is a consideration," said Marshall. "What we don't want is to purchase a piece of junk. This is where our inspection crew and the help of the vendors and other experts are important in the process. If the right steps are followed the situation benefits everyone."

- Alfred T. Spada, assistant editor

RELATED ARTICLE: Rebuild Your Used Equipment to New

An important step in the acquisition of used foundry equipment is the remanufacturing of the machine. The following are key points to consider when addressing this step.

* Completely disassemble the machine into its component state. All primary reusable parts and structural components are high pressure washed, sandblasted, ground free of foreign metals and thoroughly inspected.

* All mechanical parts are repaired or replaced with new parts as required. All wear parts are replaced with new parts. Critical components which most affect machine performance may be replaced, regardless of their condition, with technologically superior components in order to create a higher level of performance.

* The electrical control system is usually upgraded to PLC controls. All machine-mounted electrical is replaced with new components, including rigid conduit, liquid-tight flexible conduit and all wiring. Electrical components such as pressure switches and limit switches are replaced with new.

* All cylinders are fully rebuilt including new cylinder barrels and rods when required. All solenoid valves are rebuilt or replaced with new valves as required. Pressure regulators, filters, lubricators and gauges are new and are mounted in convenient locations for easy servicing.

* After final re-assembly, the machine is usually dry cycled and tested before shipment. Most manufacturers will offer a warranty for a refurbished machine similar to what you would receive with a new machine.

* A consideration during the rebuilding process is that many enhancements and improvements are usually available as options. These options include: stretching, widening and reinforcing machine frames to accept larger or different tooling; conversion from pneumatic, or air over oil, to pure hydraulic operation; upgrading to an operator interface control (which replaces a standard push-button panel); adding automatic lubrication; installing "quick-change" tooling features; and ergonomic considerations (such as automatic unloaders).