| A Buyer's View: Utilizing Refurbished
Equipment to Lower Costs In today's business
environment, where re-organization, cost-cutting and efficiency are continuing themes,
refurbished equipment can provide an effective way to assist in providing cost-effective
solutions for real process/operations problems. The benefits of using refurbished
equipment are many. These include: extended life of currently installed equipment; no
additional training requirements (use what you "know"); and of course, cost
savings.
Life extension of process control equipment, particularly
Distributed Control Systems (DCS), can provide a variety of savings opportunities to the
user. In many cases, users make the decision to replace existing DCS systems due to one
(or more) of the following concerns:
1) Obsolescence by the original equipment manufacturer (OEM)
2) Lack of functionality, both real and perceived
3) High maintenance cost - manpower and materials/parts
4) Expanding system requirements
In the current marketplace, refurbished equipment is
available for just about every piece of equipment used in a plant environment. These
products are typically sold for up to 60% of what you might pay the OEM. A typical case
for DCS products would be a requirement to expand an existing process which requires a
cabinet configured to support 20-30 loops of control.
| |
OEM |
Refurbished
Eqpt.Supplier |
Savings |
| Cabinet
(w/wiring & Mountings) |
$17,500 |
$ 7,000 |
$10,500 |
| Power Supplies
(2) |
$ 4,000 |
$ 2,200 |
$ 1,800 |
| 25 I/O Cards |
$35,000 |
$15,000 |
$20,000 |
| |
$56,500 |
$24,200 |
$32,300 |
As you can see, this would yield a cost savings of $32,300 or
57% of the OEM price as well as assuring that the equipment acquired requires no
additional training for your existing staff.
For more information on meeting your Process Control
instrumentation needs, give us a call. |