The Replace, Repair or Retrain Decision

Smart Equipment Strategy: When to Replace, Repair or Retrain in Industrial Automation

Manufacturing facilities face critical decisions about aging equipment. According to MarketsandMarkets research, the global industrial automation market will reach $306 billion by 2027. This growth highlights the importance of strategic equipment planning. This guide provides a framework for optimizing your automation investments.

Conduct Comprehensive Equipment and Skills Assessment

Regular evaluation ensures your operation remains competitive. Start by analyzing machine performance metrics. Track maintenance frequency and compare it against production targets. Calculate how repair costs and scrap rates affect your bottom line.

Consider these critical factors:

  • Machine reliability and accuracy consistency
  • Compatibility with current industry standards
  • Operator proficiency with existing equipment
  • Training opportunities for skill enhancement

As World of PLC notes, “Many facilities overlook operator training when evaluating equipment performance. Sometimes the equipment isn’t the primary limitation.”

Technical education programs like the Okuma Machine Tool Academy demonstrate the industry’s commitment to workforce development. Regular training updates operator skills. This maximizes existing equipment value while preparing for technology transitions.

Okuma Machine Tool Academy

Figure 1: Okuma Machine Tool Academy partnership with Rowan-Cabarrus Community College

Analyze Repair Costs Versus Replacement Investment

Equipment maintenance costs typically follow a bathtub curve. Failures increase as machines age beyond their designed lifespan. IEEE research indicates maintenance costs can exceed 50% of original equipment value annually for aging automation systems.

Calculate your total cost of ownership (TCO) including:

  • Emergency repairs and scheduled maintenance
  • Production downtime and lost capacity
  • Scrap material and rework expenses
  • Energy efficiency comparisons

New industrial automation equipment often provides better warranty terms. For example, some manufacturers offer three-year parts coverage. This significantly reduces unexpected maintenance expenses during critical early operation years.

Leverage Modern Industrial Automation Advantages

Technology advancement accelerates equipment capabilities. Modern PLC and DCS systems offer substantial improvements. These include enhanced processing power, connectivity, and energy efficiency.

Consider these benefits of updated control systems:

  • Faster cycle times and improved accuracy
  • Integration with industrial IoT platforms
  • Reduced energy consumption (typically 15-30%)
  • Enhanced security features protecting against cyber threats

Upgrading control systems resembles switching from older mobile devices to current models. The performance difference becomes immediately apparent. Modern interfaces simplify operation while advanced diagnostics prevent problems.

 

Figure 2: Modern CNC controls like Okuma OSP-P500 enhance manufacturing capabilities

Maximize Returns Through Strategic Equipment Investment

New industrial automation equipment delivers measurable business benefits. Statista reports that manufacturers implementing modern automation achieve 18-25% productivity gains. These improvements directly impact profitability and competitiveness.

Strategic equipment investments provide:

  • Consistent part quality with minimal variation
  • Reduced setup times and changeover flexibility
  • Lower scrap rates through improved accuracy
  • Enhanced customer confidence in delivery capabilities

Financing options make technology upgrades accessible regardless of company size. Many organizations utilize lifecycle budgeting to plan equipment refresh cycles. This approach spreads costs while maintaining technological competitiveness.

Practical Implementation Scenarios

Scenario 1: Mid-sized Automotive Supplier
Faced with increasing quality rejections on aging CNC equipment, the company implemented a phased replacement strategy. They prioritized machines with the highest maintenance costs. The result was 23% reduction in scrap and 31% improvement in overall equipment effectiveness.

Scenario 2: Food Processing Automation Upgrade
A regional processor modernized their PLC-based control systems. This enabled predictive maintenance capabilities. Consequently, unplanned downtime decreased by 42% while energy consumption dropped 18%.

For comprehensive industrial automation solutions, explore the extensive resources available at World of PLC. Their expertise spans control systems, manufacturing automation, and operational optimization.

Frequently Asked Questions

What indicators suggest immediate equipment replacement?
Consider replacement when annual maintenance exceeds 30% of equipment value. Also when technology limitations prevent quality requirements or compatibility issues arise with modern systems.

How do I calculate automation equipment ROI?
Factor in labor savings, quality improvements, capacity increases, and reduced downtime. Most modern industrial automation achieves payback within 18-36 months through these combined benefits.

Can older equipment be upgraded instead of replaced?
Control system retrofits often extend functional life 5-7 years. However, mechanical components may still require eventual replacement. Evaluate each system component independently.

Industrial automation decisions require balancing multiple factors. A systematic approach to equipment evaluation ensures optimal manufacturing performance. Regular assessment of both technology and operator capabilities maintains competitive advantage.

This analysis incorporates industry data and practical implementation experience from World of PLC automation specialists.