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 an accomplished Entrepreneur, Senior Executive, and Board Member with more than 20 years of success spanning finance, manufacturing, automotive, and management consulting. Leveraging extensive operational experience, Jamie is an invaluable asset for a company seeking expert guidance with process improvements, lean strategies, and leadership coaching in order to transform operations, reduce costs, and drive profitability. His areas of expertise include continuous improvement, entrepreneurship, coaching and training, process transformation, business strategy, and organizational design.

  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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