2004 Issue 5
Reman E-News

A Bi-Weekly Review For The Remanufacturing Community
A joint effort by The Remanufacturing Institute (TRI)
and the OEM Product-Services Institute (OPI)

Providing news for the $100B global remanufacturing community:
market trends, innovative offerings, government initiatives, acquisitions, expansions,
professional societies, trade groups, legal rulings, financial results, the environment,
productivity improvements, publications and events.

The OPI & TRI Are Presenting In Las Vegas On November 1 & 2

Crafting Performance Based OEM Product-Services
For Decision Makers Involved in the Areas of: Business Development, Marketing, Aftermarket Services, Warranty, Product/Customer Support, Field Services, Remanufacturing, Remarketing, Service Parts, Others.

You will learn to:

• Develop long-term relationships, directly or indirectly, with product operators by crafting offerings of value
• Improve Profit Before Taxes (PBT), as a % of revenue, by 15-75%
• Mitigate the risks of negatively impacting the income statement and balance when unfavorable performance occurs
• Effectively explain to top management the “Performance Based Product-Services Story"
• ...more

Why is performance based product-services important to an OEM?
…because if the lifecycle productivity performance of deriving value from a product is unfavorable for operators, the OEM can experience a:

• Decrease in the worth of its brand name resulting in the impairment of goodwill balance sheet value
• Discounted price paid by an operator for a new-product
• Decrease in the lifetime ROI from the products it manufactures due to early product retirement and the ensuing decrease in product-services revenues/profits...resulting in a decrease in an enterprise’s value
• Others

For further information go to http://www.bigrshow.com/apics/PBPS_04.pdf  or contact the Editor.

Events
The APICS Remanufacturing & Service Parts (REMANSP) Special Interest Group (SIG) and The Remanufacturing Institute (TRI) are presenting a conference at the “International BigR Show” on October 28 through November 2 at the Riviera Hotel In Las Vegas. Information is available at http://www.bigrshow.com/apics/.

Benefits

• Courses developed by subject matter experts
• Courses delivered by instructors, each having over 20 years of reman experience
• Great value: prices $150-$400 for 1-day courses and $700-$900 for 2-day courses
• Ability to develop in-house courses
• Great network opportunities to meet fellow professionals from other industries

Expansion
Detroit Diesel Remanufacturing, located in East Jackson Township (Guernsey County), Ohio, has been awarded a 55 percent tax credit for a seven-year term to expand its remanufacturing operation. The value of the tax credit will be $178,552 over the term, and the company would be required to maintain operations at the site for 14 years. Detroit Diesel provides heavy-duty diesel engine products for on-highway and off-road use. The company plans to construct a state-of-the-art 126,400 square-foot remanufacturing facility and purchase machinery and equipment. Ohio was in competition with Utah and Michigan for this $12.6 million project, which is expected to retain 508 positions and create 55 jobs within the first three years of operation. Other state assistance committed for this project includes a $5 million Direct Loan, a $100,000 Business Development grant and a $60,000 Ohio Investment in Training Program grant.

Global Competition-The Chinese Are Coming
“China is striving to build the remanufacturing industry as one of its pillar manufacturing industries,” said Xu Binshi, member of the Chinese Academy of Engineering. "China will also establish related auxiliary industries, aiming to promote the national economy and realize re-employment and sustainable development," said Xu at a national workshop on "the recycled economy." He went on to say that remanufacturing and self-renovation are in China's medium and long term plans as a priority development theme and a key technology in the manufacturing sector. From the 1990s on, there have been enterprises in China studying remanufacturing, noted Xu. Although the remanufacturing project is yet to be mature, he said, it is a "sunrise industry" and a potential giant industry, which has the ability to improve the quality and performance of products, reduce material consumption, save energy resources and protect the environment. Xu added that the crucial step of putting forward China's remanufacturing industry is to establish relevant laws and standardize business activity and market operation.

Upgrading OF Yard Locomotives Through Remanufacturing
A Vancouver company that remanufactures environmentally friendly railway locomotives in Calgary is winning substantial funding and praise for its “little engine that can.”

RailPower Technologies Corp. has recently been promised more than $24 million from an $80-million Texas program aimed at reducing industrial air pollution in that state.

The Texas Emissions Reduction Program will support the purchase by the private sector of more than 25 of RailPower’s Green Goat diesel-battery hybrid locomotives, the company says. “This is a tremendous endorsement of our technology,” said RailPower president and CEO Jim Maier. “They’ve provided a wonderful launch market to get going and to get customers taking the product,” he added in an interview.

The so-called switcher locomotives – smaller than the ones used on mainline tracks to haul long freight or passenger trains – are used in switching yards to shuttle railway cars to and from trains.

California is also providing funding, under its Carl Moyer emissions-reduction technology program, to help companies buy RailPower’s Green Goat and smaller Green Kid locomotives.

The company says its locomotives reduce polluting nitrogen oxides and dangerous particulate matter by 80 to 90 per cent, compared with conventional switcher locomotives with similar horsepower.

RailPower’s locomotives also cut diesel fuel consumption and greenhouse gases by 50 to 80 per cent, according to the company.

The locomotives, built by Alstom Canada Inc. at the former Canadian Pacific Railway shops in Ogden in southeast Calgary, are remanufactured from old, comparably inefficient and polluting switcher locomotives. The new hybrids feature small diesel-fuelled generators and large banks of recyclable lead-acid batteries that store the power used in shuttling railway cars around.

“I believe it is the future,” said Vancouver-based CP Rail mechanical specialist Ken Perry of the next-generation locomotive technology. Perry said CP Rail tested a prototype of the Green Goat for about two months of active service at switching yards in Vancouver, Calgary and during the winter in Moose Jaw, Sask.

The Green Goat performed better than conventional switcher locomotives, he said. “It pulled better. It pulled faster. And it did it for half the fuel.” It also operated in “close to silence” compared with a noisy, strictly diesel-powered locomotive, Perry said.  The Goat’s rebuilt open cab provides safer, unrestricted visibility as opposed to the narrow range of field found in cabs in conventional yard switchers, he added.

CP Rail hopes to purchase some of the Green Goats as soon as Transport Canada comes through with incentive funding similar to that offered in the Texas and California emission-reduction programs, Perry said.

Maier said there is regulatory and public pressure in the U.S. to reduce air pollution in ports, while accommodating ever-increasing cargo shipments.

The Green Goat and the Green Kid are both ideally suited to shuttle freight from offloading ships to railway terminals, he said.
 

Join TRI
Only $50/yr to become a member. You get to have your name listed as a member, help to defray some of our costs in putting this newsletter together, help maintain the www.reman.org  web site and help support the Reman U. Contact the editor for further info.


Final Note
We encourage you to forward this newsletter to friends in the remanufacturing community. It is our intent to carry news on all industry sectors. If you have news to share or comments, please contact the Reman E-News editor:
 

Ron Giuntini

rgiuntini@oemservices.org
570.523.0992

Ron Giuntini, Executive Director
PO Box 48
Lewisburg, PA 17837
rgiuntini@reman.org
570.523.0992

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