Equipment Purchases Demand Consideration,Review

Equipment Purchases Demand Consideration, Review
Dedication to service and a willingness to meet capacity requirements are among the things to look for when selecting an equipment supplier.

What are some of the common mistakes made in equipment purchases?

Wayne Lewis, owner, CapPlus Technologies: First, sometimes customers have difficulty choosing equipment to fulfill both immediate and future production requirements. Buying just enough capacity to fulfill immediate needs is often costly and disappointing. Sometimes, this type of purchase is the result of the mistaken assumption that the maximum production rating on the machine can be expected at all times. Rarely will the equipment produce at its capacity unless all parameters of the production run are perfect. Keep in mind that most pieces will run comfortably about 70 percent to 75 percent of their rated maximum capacity. If you plan for that, you won't be disappointed. In the long term, buying a machine rated at 25 percent to 50 percent above what you anticipate can save thousands of dollars in future replacement equipment.

Second, remember that buying the least expensive equipment usually gives what you purchase. These days, you can lease the equipment at very affordable monthly payments and build additional capacity so there are fewer employees involved in doing manual labor. Sometimes it is smarter, more efficient and more cost effective to purchase additional machine capacity to reduce the amount of labor required to complete the process by hand. This will cost more up-front but save thousands in the long run, most often paying for itself within the first 12 months. This lets the employees do more constructive work in other production areas, also saving you time and money.

Dale Natoli, sales manager, Natoli Engineering: Lack of product knowledge, without a doubt. Decisions are based too much on printed information, maybe from presentations, and not from real-life situations or real-life evaluations. The lack of true knowledge of a particular product is probably the biggest mistake.

I can say that communication is probably another big issue. When you're dealing with the [nutraceutical] industry, you're dealing with several distinct departments: marketing, research & development, manufacturing, packaging, sales. Unfortunately, very few companies spend enough time to communicate or to stimulate communication within departments to allow the company to manufacture a product efficiently and effectively.

What are three primary issues to consider when purchasing equipment?

Lewis: First, the ability of the seller to support the equipment with both technical service and spare parts. Second, what is the length of the warranty and what does it cover? Finally, unless you know and trust the person [you're dealing with] or the equipment to be purchased, go see the equipment running yourself and make sure it will do what you think it is supposed to do.

Natoli: Price, of course. Price then falls into the category of equipment efficiency. Also, consider the market you're trying to serve and the capabilities of the piece of equipment.

What questions should be asked before an equipment purchase?

Lewis: There are many important questions. What kind of history does the equipment have? Will the equipment fit my specific needs? It's a good idea to ask to speak with someone who is currently running the equipment. And if you're uncertain of the machine's capability to fit your needs, see whether the seller will test your product on his equipment.

Natoli: Product information should be relayed to the equipment manufacturer simply because the equipment manufacturer deals with the industry on a daily basis and troubleshoots constantly. They're working with different products, sizes, environments and individuals. If a tablet manufacturer is having a deficiency in manufacturing a product, about 95 percent of the time that information is not relayed to an equipment manufacturer. So whether you have a sticking problem--meaning the tablets stick to the tools--a lamination issue with the tablet quality or a binding issue with tools in the machine, a lot of the time these issues are not brought up when making purchases, so a tablet manufacturer will continue to make the same mistake over and over again. Tablet manufacturers should take advantage of the resources that are available and should relay any issues with a product to the equipment manufacturer so he can address them for the equipment purchase. For example, if you're trying to make a product and a researcher is having a problem, there could be options available with this piece of equipment that could help eliminate some of the problems you're having in your manufacturing. It's your responsibility to tell this to the equipment manufacturer so he can provide options or build a special piece of equipment to get you your equipment so you can meet market demands. The key decision makers are the ones that really need to communicate to make the proper purchase.

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