Extending the Life of Equipment

Here’s an interesting article on how Chrysler will be selling its manufacturing equipment from the Sterling Heights Assembly Plant to a Russian manufacturer. This isn’t the first deal of its kind, but it shows that Chrysler is being creative in looking for sources of cash and revenue. Also coupled to this deal is an agreement to supply engines.

The detailed terms of the deal were not disclosed, and those details mean everything in an arrangement like this. Taking the equipment out is usually a straight-forward demo project, but removing it, packing it and shipping it is a whole different set of activities.

I’ve been to this plant, so I’m not sure they can call it “high-quality manufacturing assets” and I’m not sure they can call the Stratus “popular.”

So, here’s the question: what do you do with assets or materials that you no longer use or need? Do they sit around? Get thrown out? OR, turned into something useful?

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Jamie Flinchbaugh is a lean advisor, speaker, and author. In addition to co-founding the Lean Learning Center, he has helped build nearly 20 companies as either a co-founder, board member, advisor, or angel investor. These companies range from high-performance motorcycles to SaaS tools for continuous improvement. He has advised over 300 companies around the world in lean transformation, including Intel, Harley-Davidson, Crayola, BMW, and Amazon. Jamie co-authored the popular book The Hitchhiker’s Guide to Lean, and continues to share his experiences as a Contributing Editor forIndustryWeek and as a blogger at JamieFlinchbaugh.com. He holds degrees from Lehigh University, University of Michigan, and MIT, and continues to teach and mentor on campus. Jamie is best known for helping to transform how we think about lean from a tools-centric model to one based on principles and behaviors. His passion for lean transformation comes from seeking to unlock the great potential that people possess to build inspiring organizations.

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2 Comments on "Extending the Life of Equipment"

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  1. Mark Graban says:

    I worked with a lab recently that sold excess equipment (thanks to lean and 5S) to other labs on eBay.

  2. Mike Lopez says:

    If only they could figure out a way to sell the services of the Jobs Bank.

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