Remanufacturing Versus New Acquisition of Production Equipment: Definitions and Decision-making Checklist

Abstract: With technology changing at a dramatic pace, entrepreneurs may assume that acquiring the newest production equipment available is the best option. But that is not always the case. It is important to first assess the needs in order to decide whether new or remanufactured production equipment is the best alternative. Investment on production equipment can be initiated due to existing equipment cannot handle capacity; products evolve and changes needed to meet market requirement; to continuously improve production system; or the general requirements for quality, environment, economy and safety. However, the study reveals that it has received only limited attention from academics and practitioners regarding to whether decide to remanufacture or new acquire production equipment. Further, the framework visualizes the complexity of managing decision-making between production equipment remanufacturing and new acquisition. The study employs qualitative method by conducting literature review, interviews, brainstorming sessions, benchmarking, and observation to build the theoretical framework and collect empirical data. The thesis identifies the differences between production equipment remanufacturing and new acquisition; distinguishes the different levels of production equipment, proposes a new definition of production equipment remanufacturing; and analyses factors should be considered for the decision-making process. Altogether, the findings provide strong evidence to propose a decision-making checklist in decisions between production equipment remanufacturing and new acquisition.