News: Go on green - the merits of remanufacturing
Modern Materials Handling, a US journal reports that just by using remanufactured goods, companies can reduce costs and have an impact on the environment.
Wednesday, 5th March 2008
MMH Advisory Board member Ron Giuntini (OEM Product-Services Institute) reports that this cost reduction is often 30% or greater for "exchange" transactions (trade-in used/impaired good for a remanufactured good). Reman is multiple times more environmentally friendly than almost all forms of pollution prevention. It eliminates the need to employ 85% of the resources required to manufacture a new-condition good. This is the ultimate form of "lean." The authors of lean, Womack et al, have recently done a mea culpa and admitted that focusing on leaning-out supply has marginal impacts on the bottom line, but leaning-out demand is truly the "holy grail." This is exactly what reman accomplishes. The carbon credits in using reman vs. new-condition goods will become highly material to "truly" having a favorable impact on the environment.