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  Langen Packaging Inc.
6154 Kestrel Road
Mississauga, Ontario
L5T 1Z2 Canada

Tel: 905.670.7200
Alt: 866.338.7775
Fax: 905.670.5291

 
 
 

 

The 10 Basic Rules of Purchasing Used Packaging Machinery


An addition to the popular How to purchase used packaging machinery white paper



Purchasing used packaging machinery can actually be a more complex process than buying new equipment because of all the additional variables that must be considered to guarantee a successful outcome. There is far more to consider than just the quality of the machine, the company’s technical approach and experience, and lengthy lists of references.  A used machinery purchaser needs to be concerned about the past history of the machine including maintenance frequency and skill, the reseller’s ability to rebuild or modify equipment, the service technician’s skill … and in a way a used machine sell is more difficult because of the proliferation of fly-by-night resellers that have tarnished the reputation of some brands and even the process itself.

So here we present a few rules that we hope will help make your next used equipment purchase a guaranteed success.

 

Langen_Product

Rule 1: MAKE SURE CURRENT SAFETY STANDARDS ARE MET

Is the machine up to date with the current safety standards for packaging equipment?

Protecting workers from harm and machine owners from liability cannot be managed simply by accepting the original guarding packaging that dates back to the time when the machine was manufactured.  Safety rules in today’s industrial environment are more stringent than even five years ago and certainly far stricter than 10 or 15 years ago.  Making sure the equipment meets current safety standards is not only the right thing to do but also the smart thing to do as the regulations put more and more onus on the owners for the safety of their machines.  For example, new regulations in Ontario, Canada stipulate that it is the responsibility of the new owner to perform a Pre-start Safety review of the machine to ensure the machine guarding meets current regulations.  This review must be performed by a safety professional who is then responsible for any liabilities that may result from inappropriate guarding. Do you have similar requirements in your State or City?  Make sure your supplier knows the requirements you have to meet and that the machine you buy meets those requirements.

Rule 2: INSIST ON A WARRANTY

Are you covered in the event of future problems?

The common understanding is that when buying used equipment the buyer assumes the risk of premature machine failure as the sales are mostly done “as is”.  This is the typical arrangement when a machine is purchased in an auction or when brokered through a “used machinery” dealer.  The savings you initially receive are attractive in spite of the risk you know you are taking.  Perhaps you may even be lucky and your machine runs like a dream for many years because the previous owner followed good maintenance practices and only performed OEM approved modifications.  The real question is long term coverage when thinking beyond exceptions.  All reputable OEMs who sell used equipment also offer full warranty coverage, which may even be the same as that of a new machine.  These OEMs are pre-occupied with selling machinery that meets quality standards on par with their reputation, and prefer to rebuild their machines before offering them for sale so that they may have the confidence to support the sale with a standard warranty.When buying used equipment insist on having a significant warranty.  It may be the first indication of either the commitment of the seller to performing a quality sale, or their confidence on the reliability of the equipment they are selling.

Rule 3: INSIST ON CURRENT DOCUMENTATION

Are the Bill of Materials and Drawings up to date?

Having the right drawings and bill of materials (BOM) is as important as having a good machine.  No matter how good the care of the machine or how good the preventive maintenance, the fact is that eventually the machine will wear out or break down.  An appropriate and up-to-date manual and BOM will be required to help your mechanics with the repair.  Buying a used machine from a used equipment dealer can limit your access to proper documentation.  Before buying make sure you ask the right questions, look at the documentation provided and most importantly compare that documentation with the equipment to ensure it is current.  It is critical you confirm that the electrical schematics and the PLC program (when applicable) also reflect the current state of the machine.If you decide to buy used machinery from a source that is not the original manufacturer, a good practice is to register with the OEM so that their records are updated with your machine’s information and location.  It is also a good practice to ask for one of their technicians to come to your plant and evaluate the machine.  A trained eye can see potential problems that are impossible to spot without a visit.  While this is an additional expense it is worth considering since a single visit could minimize your production loses should a problem suddenly arise.   If a problem does occur, up-to-date documentation can mean the difference between a mere inconvenience and significant production losses.


Rule 4
: PLAN FOR SOURCING ORIGINAL SPARE PARTS


Will spare parts be available to support your production runs?

Make sure you know in advance of worn down bearings or suction cups where you can source spare parts.  A recent PMMI survey determined that most OEMs will support their own equipment even if they were purchased elsewhere.  Many times non-OEM parts are installed in order to inexpensively meet the requirements of a new product or were installed as a quick fix to a particular failure because using the right parts was deemed too time-consuming or just not important.  No matter what the reasons are, buying a used machine carries the risk of unsupported components that could result in production losses.  Again, this is where a visit by an OEM technician to perform a quick review or a full evaluation of the machine is a good approach to minimize such risk.


Rule 5
: INSIST ON SKILLED AND EXPERIENCE SUPPORT


Has the seller enough technicians to support your machine during installation?

Even in those cases where the machine performs very well during the Factory Acceptance Test (FAT), it is important that the seller has enough technicians to support you during the installation and commissioning of the machine.  It is equally important that during the first production months you receive the service support needed to deal with the growing pains of understanding the new machine.  No matter how good the training program has been, when the times comes to run production there will be situations where there is the need for support either by phone, e-mail or in person.  Challenge the seller to prove to you how responsive and skilled their service department is.  Are their technicians experienced with your equipment?  Remember that used equipment sellers or small reseller outfits need to deal with many brands at the same time so a great deal of knowledge of any one specific brand is just impossible to expect.  This holds true for the sales person as well as the technician.


Rule 6
: PREPARE YOUR OPERATORS WITH APPROPRIATE TRAINING


Is the seller of the equipment capable of training your personnel?

Sometimes buyers forget that training is an integral component on the path to success.  The purchasing cycle is really just the first step on a long process.  Having the right people to operate the machine and training the right people the right way is as equally important as having the right machine to perform according to expectation.  A machine can only run as good as the people who operate and maintain it; and showing operators how the machine works is the right start, but will only get you so far in your quest for efficiency and performance.  Because of the need to train new customers OEMs have experienced personnel who can provide relevant and effective training at the appropriate levels required by your organization.  Remember that you are entitled to skilled trainers who understand that adults learn differently and therefore require different teaching materials and activities.  You are also entitled to skilled trainers who will make the adoption of new equipment smoother and easier for your operators.  Contact the OEM to see if they offer a training program.  Most OEMs will be happy to help you train your people regardless of whether you bought the machine from them or not.


Rule 7
: LOOK FOR THE SIGNS OF COMMITMENT


How committed is the seller to your success?

Commitment is not something that is easily defined or described, however its presence is something that we all understand and its absence is something we all definitely notice.  Equipment sold “as is” says a lot about commitment, in particular to your success.  Its absence indicates that you are expected to take the entire risk even if the equipment is not the right machine for your product, not easy for your operators to use, or does not perform to your expectations.  “As is” is a signal that this is a one-time deal rather than a long-term commitment to you as a customer.You know there is commitment when a seller values their brand by offering warranties and responsive support.  Commitment comes in the form of taking an interest in the performance of your operation, and taking the time and effort to provide the appropriate solution to your needs.  Commitment will announce itself when suggestions for improvements are made, and only skilled technicians work on your machine.


Rule 8
: PREPARE FOR THE FUTURE


Here today, gone tomorrow?

Although nowadays it is difficult to predict which company will be in business five or ten years from now, it is fair to say that companies that have a heritage will survive either on their own or as part of a larger corporation.  In other words, equipment manufacturing companies that have been in business for a fairly long time will (should!) have an extensive legacy of installed equipment that requires a support staff with considerable expertise and talent.  Before you purchase used equipment take a look at the history of the seller and confirm their financial strength; you may need them in the future.


Rule 9
: PREPARE FOR CHANGE


Will you have the support to modify the machine for new products?

Markets and customers change and so do products and packaging.  No matter how well you know your market and your customers, you appreciate that eventually a new product will be needed and this may involve changes to your machinery.  There are two ways to do this: quickly and costly, or quickly and properly.  As mentioned earlier, packagers who modify machines without a complete understanding of the capabilities and limitations will eventually experience frustration and annoyance.  To do the job properly, a simple call put in to the OEM could answer your questions and get you smoothly on your way.  Used equipment dealers are not in a position to offer advice or make recommendations with confidence and authority, because of their necessarily limited knowledge of the machine.  Think of going to a dentist to have your eyes checked!  Do check to see how closely the machine resembles the original design so that it can be modified without incurring the cost of updating the drawings first.


Rule 10
: TAKE YOUR TIME


Will rushing a decision save money now, at future expense?

While there is additional risk in buying used equipment versus new, sometimes there is a price advantage to justify the risk.  Taking the time to make the right decision could mean the difference between a successful experience and an irritating one.  Admittedly, buying from a used equipment dealer is usually less expensive than buying the same machine from the OEM.  Initially.  Sometimes a few dollars saved in the beginning means many more dollars lost in future production and ultimately very unhappy customers – your customers.  Investigate all your options and consider OEMs.


FINAL THOUGHTS

Ultimately, the objective is to buy the equipment that could provide you with the best value over the production life of the machine.  Make sure that you are making the right decision by considering all the facts and not just the price of the machine. HAPPY BUYING!

 

 

Click here to download a PDF

 

For more information please contact Jose Cornejo at 905.696.2116