Could You Improve Your Machinery Asset Management?
Every organisation has stock or assets which are of no further use. These can be simply the materials which are no longer in demand or the specific plant purchased to complete a particular job that is now finished.
Redundant plant and equipment occupies space which could be better utilised for storing other items. Machinery not likely to ever be used again in the manufacturing process are classified as dead inventory. It may consist of various items like unused assets, obsolete items, surplus inventory, deteriorated stock, scrap and waste materials etc.
Here are 4 main reasons for the accumulation of obsolete, surplus plant and equipment:
1.Loss of project or manufacturing process:
Due to unforeseen industry trends, maybe the product you made a few years ago is no longer in production - leaving some machinery or equipment surplus on the shop floor
2. Changes in product design:
This may lead to some items being invalid as far as the final product is concerned. Hence, the entire stock of such items become obsolete.
3. Cannibalisation:
When a machine breakdown occurs, sometimes it is rectified by using parts from an identical machine which isn't functioning for some reason. This process of cannibalisation is not uncommon in many project-based industries.
4. Other causes:
Many items are held as insurable spares for many years without any consumption, faulty store keeping methods (without adequate preservation this leads to spoilage). Inferior materials handling, improper codification and poor manufacturing methods also result in obsolete, surplus and scrap items. Poor maintenance of machine tools may result in excessive tool wear and greater process scrap.
Make these redundant assets work for you - selling machinery assets will provide prime benefits to any company or individual.
- Improve cash flow
- Free up work areas and stop paying for dead space
- Seize the opportunity to invest in new technologies
Contact Westermans for a fair price and easy transaction - we can handle all aspects of the sale including dismantling and transportation, saving you precious time. Find out more here and make your dead assets work for you.
?