Refurbishment is defined as the process of repairing spare parts and returning the spare parts to the warehouse or to the equipment. You can define a Refurbishment order as Maintenance order by which you can execute the process of refurbishing damaged equipment. To perform this, you need a material and serial # combination.
As part of the Refurbishment process, you can uninstall the damaged equipment or material from the maintenance plant and it is moved to the Warehouse using movement type 101. A Refurbishment order is created to collect the cost for the refurbishment process.
Once the Refurbishment process is completed, you change the conditional state of material from damaged to Refurbished state. The Refurbished equipment can be reinstalled in the maintenance plant and the order is closed.
Reprocessing is not appropriate in all cases. Construction World advises business owners and equipment managers to consider “the type of machine, the size of the fleet, and the age and condition of the machine” before making an overhaul decision.
At some point, it will be necessary or at least desirable to replace every machine. This applies in particular if the machine has suffered significant damage or has already gone through a non-optimal preparation process one or more times in the past.
A thorough inspection by specialists can help determine if your machine has reached this point. In general, it is more profitable to overhaul large machines like motor graders than smaller machines.
Another consideration is that refurbishment takes time, and temporary loss of machinery can put a strain on smaller enterprises. Over the long term, however, it's often the most sustainable, cost-effective option.
The most obvious benefit of refurbishing machines is the cost savings. These can be as extreme as half of the cost of a new machine – funds you can then put to profitable use in other areas of your business.