Repair or Replace?

The cost of maintaining an industrial laser is a concern for many firms.By comparing the actual costs of repairing and replacing lasers, the life of the equipment and the downtime, and combining this with the common failure scenarios, it helps users to decide whether it is better to repair or replace.Keywords: Maintenance costs for industrial lasers, laser repair costs, laser replacement costs.

How much does it cost to repair or replace?

The cost of maintaining an industrial laser is always a headache for production managers.Many users have discovered that when equipment breaks down, repair costs can reach tens of thousands of NT dollars, while the cost of new equipment can reach hundreds of thousands.Should we grit our teeth and fix it, or just replace it?

The hidden costs of maintenance are often overlooked.

Many people feel that "fixing is cheaper than replacing," but the reality is more complicated.For example, a 3-kW fiber laser from a certain brand requires a US $ 50,000-80,000 core module replacement. But you also have to factor in the loss of production during the down time (assuming a loss of US $ 10,000 per day, three days of down time would cost US $ 30,000).If the equipment has already been in use for five years or more, even after repairs it may still face the risk of new problems arising from aging parts.

When would be the best time to replace them and save money?

We have conducted research on 20 manufacturing companies and found that if the cost of repair exceeds 40 % of the residual value of the equipment, or if the remaining useful life is less than two years, then the total cost of replacing the equipment is lower.For example, a laser cutting machine purchased in 2018 by a certain enterprise needs NT $ 90,000 worth of repairs this year, because the drive shaft is damaged. But the machine's current residual value is only about NT $ 150,000, so it would be more cost effective to simply buy a new machine.

Don't miss the technology dividend from new equipment.

New models of industrial lasers use 30 % less energy than those made five years ago, and they are also more precise.If a company needs to raise production capacity or accept high-precision orders, the "cost of changing machines" at this time actually includes the value of the technological upgrade.It's like a cellphone that gets slower and slower as it ages. Although lasers can be repaired, they never work as efficiently as new ones.

Three-step decision making.

If you run into a problem, don't jump to conclusions. Instead, follow this procedure:

Check the equipment's service life.

In the first five years, maintenance is the priority, and after eight years there should be a comprehensive assessment of overall aging.I've seen many cases where a part A is fixed, but a part B develops a problem the next month. It ends up costing more to keep fixing the same thing.

Compare the repair bill to the car's residual value.

Find a professional appraisal agency to calculate the current market value of the equipment.A simple calculation is: original price x (1-annual depreciation rate x years of use).If the annual depreciation rate is 15 %, the residual value of a four-year-old machine will be about 40 % of its original price.

Calculate the impact of the downtime.

During peak season, a single day's downtime can result in a loss of hundreds of thousands of dollars in orders. At this point, it makes sense to pay a little extra for quick service.But if it is the off-season, it may be worthwhile to upgrade completely.

You have to be careful about such special situations.

How do you deal with a shortage of parts?

If the parts for a laser are no longer produced (for example, certain imported RF laser tubes), then repairs may require custom-made parts. At this point the cost and time involved will skyrocket, and it may be better just to replace the entire device.

The water is very deep in the second-hand market.

Some users consider buying used lasers to save money, but they must be careful to verify the actual hours of use on the equipment.We have seen cases of refurbished machines being passed off as 95 % new, so this risk needs to be factored into the cost.