Subscribe to our free, weekly email newsletter!


Modernize equipment to attain strategic objectives

When evaluating whether to refurbish existing equipment or to invest in new replacements, it’s wise to consider several factors, advised Pete Hartman, president of Retrotech
By Modern Materials Handling Staff
March 21, 2011

When evaluating whether to refurbish existing equipment or to invest in new replacements, it’s wise to consider several factors, advised Pete Hartman, president of Retrotech (Booth 554).

“Modernization is generally thought of as replacing obsolete components, but a more valuable aspect is to realign your system with new and evolving strategic corporate objectives,” said Hartman.

“When you look at the rapid pace of change in the current economy, every five to seven years people ought to be testing these investments for strategic alignment,” he continued. “Consider modernization as a mechanism for realigning that investment with current strategic thinking.”

To validate a modernization project, Hartman suggested three guidelines: Determine the return on your investment; consider how the investment supports strategy (as opposed to managing costs); and verify that the underlying business plan used to define objectives is stable enough to yield maximum value.
ProMat 2011 will be held March 21 - 24, 2011 at McCormick Place South in Chicago. The tradeshow will showcase the latest manufacturing, distribution and supply chain solutions in the material handling and logistics industry.

Read all of Modern’s ProMat 2011 coverage

 

 

Subscribe to Modern Materials Handling magazine

Subscribe today. It's FREE!
Find out what the world’s most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today!

Recent Entries

Made up of nine- to 14-year olds, six teams of eight will face off in a series of

Parent company's Logistics & Automation Division began servicing North American customers in 1962, 12 years before Murata machinery was established.

Pack Expo and Pharma Expo to draw 2,400 exhibitors in more than 1.2 million net square feet of exhibit space.

Cloud-based manufacturing execution systems grant visibility into centralized or global manufacturing environments.

In-plant trailers represent a tried and true method of moving materials through plants safely and efficiently. While trailers look alike at first glance, there are some significant differences that greatly affect performance and cost. The wise purchaser will study the differences and select the system that makes the best sense for the specific application. This complimentary white paper addresses the most important design factors to consider when specifying in-plant trailers.

Article Topics

News · ProMat 2011 · All topics


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA