Addressing Today’s challenges in automotive remanufacturing

Jnl Remanufactur https://doi.org/10.1007/s13243-018-0047-9 RESEARCH Addressing Today’s challenges in automotive remanufacturing Robert Casper 1 & Erik Sundin 1 Received: 26 June 2017 / Accepted: 15 June 2018 # The Author(s) 2018 Abstract Automotive remanufacturing companies are nowadays facing a wide range of challenges. Typical challenges from the point of view of suppliers, producers and customers. Several process steps are analysed and problem fields are dissected: From the core management, to disassembly and cleaning to machining and testing. The main fields of challenges analysed in this paper are: the vagueness in respect of fiscal value, environmental regulations and taxation of core parts, the important need for a continuing qualification of staff and engineers, an efficient core management, the adaption of pricing models and the competence to handle the growing variety and complexity. The focus of this analysis lies on activities of the independent after-market (IAM) for remanufactured products. Keywords Remanufacturing . Automotive . Mechatronics . Electronics . Design for Remanufacturing . Core management . Circular economy Introduction Automotive remanufacturing is of growing importance within the automobile industry. Nowadays every OEM has programs with remanufactured parts and their market volume is growing [12]. Targeting for an earlier end of production (EOP) of new spare parts, OEMs establish more and more remanufacturing systems. Reasons for this are rising production costs per produced part as an effect of decreasing production output. In many cases production lines and the resources (e.g. staff, machines) are also needed for newer production lines [9]. Like all other branches the remanufacturing companies have to address challenges to stay competitive. In this paper today’s most important challenges are highlighted. The aim of this paper is to put important remanufacturing-specific challenges together and create awareness of all responsible * Erik Sundin 1 Division of Manufacturing Engineering, Department of Management and Engineering, Linköping University, SE-58183 Linköping, Sweden Jnl Remanufactur parties involved and focuses herby on the automotive car remanufacturing industry in Germany. The focus of this analysis lies on activities of the independent after-market (IAM) for remanufactured products. Where possible, challenges are evaluated and potential solutions are given. In the end a recommended course of actions is given and an outlook concludes this paper. Methodology To obtain and verify the necessary information for the above mentioned problems, different methods and techniques have been applied: 1. Relevant, available literature in connection with this matter was studied. 2. Semi-structured interviews with several experts and managers at remanufacturing companies have been conducted (see Table 1). 3. The data from step 1 and 2 was aggregated and clustered. 4. The clustered data was analysed and samples were highlighted. 5. The data was evaluated and recommended courses of action were given. Remanufacturing and politics Like every other industry as well, the remanufacturing business is subject to local, national and international restrictions, regulations and laws. In general some facts can make remanufacturing business in the interaction with authorities and the state more complicated in comparison to other businesses: Definition of the status of cores: The interpretation of the status of cores is often a matter of discussions. Can cores be seen as a used spare part? As old metal? As a scrap part? As hazardous waste? The particular interpretation of the state has a strong influence on the remanufacturing business, as these questions are strongly linked to taxation regulations and import/export terms, i.e. with regard to waste legislation etc [2]. Table 1 Environmental sustainability indicators used by six different sources Interviewee Company/Organisation and function Content Prof. Dr. Carsten Bücker Achim Birr BU Drive GmbH, CEO Willi Ketz Schmitz + Krieger GmbH, Plant Manager Hans Hess Industrietechnik GmbH, General Manager Erasmus + Willms GmbH, General Manager General challenges in today’s remanufacturing Remanufacturing market, sale challenges, logistics challenges, customer’s needs Technical challenges in remanufacturing Volker Münster Helmut Spangenberg BU GmbH, Director Sales Technical challenges in remanufacturing, re-engineering, core sourcing Technical challenges in remanufacturing Jnl Remanufactur Definition of status of remanufactured exchange parts: Equivalent to the discussion concerning the status of cores (see above), there are different points of view on how to evaluate a remanufactured exchange part. Can it be seen as a new spare part? As a used spare part? As a repaired spare part? Accordingly this has influence on taxation regulations and import/export terms. But moreover the important field of duration of warranty is affected. Special tasks around the remanufacturing-specific transformational process: The remanufacturing process consists of process steps which differ from other transformational processes. Some of these steps are of special interest to authorities and regulations, often dealing with environmental task: & & Used parts are being transported – often over long distances – and are usually contaminated with material and liquids which could harm the environment. Therefore transport packaging has to therefore meet other, more strict demands. In the process step “core disassembly” the above mentioned materials and liquids have to be handled, stored and disposed of according to the respective regulation of the country. Very often authorities are demanding a complex and time-intensive reporting and communication process. Remanufacturing and society The society in total can be seen from two perspectives: On the one hand it can be seen in our model as a counterbalance to politics and industry. A party which evaluates the actions of the other two parties in a critical form. In this respect the actual attitude of the society towards remanufactured products is of interest. This attitude is highly dependent on the actual understanding and evaluation of “Green Business” and the interest in problems and questions relating to environmental standards. Last but not least the actual overall economic situation within a society is of high importance for the remanufacturing industry, too. These views on remanufactured products are very important for remanufacturing companies, as the society is the potential client of every company operating in this business. Even if companies in the short term are just dealing with OEcustomers: A product which has no acceptance within a society is non-marketable in the medium term. To generate, conserve and extend this attitude is an important challenge of the complete remanufacturing industry. Remanufactured parts have to be seen from the customer side as envi (...truncated)