Contributing Re.engineer: Millicent Scales
Challenge: A manufacturing team realized that they needed to replace a subset of challenged pumps, however, most of these assets hadn’t made it through their entire life cycle. Replacing all of these pumps would be a very expensive project.
Solution: The team brainstormed ideas of how they could replace the pumps while also reducing the total cost. They discussed their opportunity with the pump vendor and later came to an agreement that the vendor would receive the old pumps and recondition them for other customers. In return, the team would receive a credit for all of the new pumps that would be purchased.
Results: This was a Win/Win negotiation strategy as the team would receive a credit of $250,000 and the vendor would be able to resale the reconditioned pumps (originally, these pumps would have been demo’ed). This approach has worked so well that the team will also be applying it for their compressor technologies too.