‘Remanufacture Your Business Environment’ – Material Handling & Logistics

Apr 08
2013

Be sure to check out my new article entitled ‘Remanufacture Your Business Environment‘ in this month’s Material Handling & Logistics. I look forward to your comments…

You can read the article on page 21 here.

Remanufacturing – A New Business Model for Light-Vehicle OEMs

Mar 04
2013

I wanted to share a recent white paper I prepared for SAE International focusing on the hot topic of remanufacturing in the light vehicle OEM world.

“The combined market value of GM, Ford and Chrysler (the estimated value that is part of Fiat) is less than that of combined value of Deere, PACCAR and Caterpillar, which have only 25% of the annual sales volume of the “Big-3.” GM, nor Ford, which for decades were ranked within the top 25 largest US- based corporations, measured by market capitalization, do not currently even rank within the top 100 corporations.”

Read the article in its entirety here and learn about my proposal to the Big-3 auto OEMs: Remanufactured Products: A New Business Model For Light-Vehicle OEMs

Giuntini & Co. Referenced in Latest US International Trade Commission Study on Remanufactured Goods

Nov 28
2012

Quite proud of this – I was recently referenced in the latest U.S. International Trade Commission study on Remanufactured Goods. Click here to view the release and then follow the link to a PDF of the report. Referenced on page 39.

Will the DoD Ever Manage Parts More Efficiently?

Jun 27
2010

The estimated current inventory investment by DoD for the organizational level parts employed during the Product Support processes of correct/prevent unplanned weapon system failure is $40 billion. An estimated 35%-50% of this investment is materially excess or obsolete (will never be used). Another issue is that the financial accounting accuracy of these parts would never meet the “smell test” by any private sector auditing firm; people would go to jail for this type of accounting…but that is another story.

GAO has had many studies dealing with the efficiency and effectiveness of the management of parts by the Services; none have been very flattering: Study 1, Study 2, Study 3

DoD accountants are not “bad people;” they do the best with the procedures provided to them. The real issue is that DoD, nor the Federal Government, develops a balance sheet that has any merit; politicians like it that way because accountability for “mistakes” can often be hidden from view…nothing better for a politician than to be opaque!

As more and more parts are COTS, and CLS, coupled with PBL/Outcome-Based Product Support constructs become more common, some of these inventory investment issues will become less glaring.

The Dark Side of Remanufacturing

Jun 23
2010

The Product Support process of remanufacturing can be employed for good…or for evil. Remanufacturing is a process that extends the economic life of a used-condition system by: growing its reliability, evolving its technology, assuring its design capability and improving the efficiency of Product Support processes employed.

Many firms acquire used systems and induct them into a remanufacturing process that delivers a product that has many of the attributes of a new system, but at 50% to 70% of the price; the customer wins and the entrepreneur wins by taking an “ugly duckling” and making an attractive profit from the make-over.

But there is one organization that can view remanufacturing unfavorably; OEMs who believe that the remanufactured product has “stolen” sales from their new-condition products. One approach an OEM could take is to begin a remanufacturing business and at least grab some of the used product market…but an “evil” approach would be to purchase as much used products as possible and then destroy the products so they could never be remanufactured…forcing customers to buy the OEM’s new-condition products.

One of America’s business leader icons, Thomas Watson, Sr., founder of IBM, used exactly this “evil” practice and was found guilty of anticompetitive practices. In 1903 Watson, working for National Cash Register (NCR) created a bogus firm to monopolize the used cash register business and systemically destroyed the machines, thus driving increased demand for new-condition cash registers.   

The above event and much more about Thomas Watson can be found in the book, “The Maverick and His Machine: Thomas Watson Sr., and the Making of IBM”.

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