Extending Equipment Life with Remanufactured Components

July 24, 2024

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As mines become more conscious about costs, many are considering not just the cost of equipment but also the total cost of ownership (TCO), which reveals the full cost of owning and operating that equipment through its entire lifecycle. Keeping equipment properly maintained is one of the key strategies for that. Another, which has grown considerably in recent years, is extending the useful life of equipment with remanufactured components. In this edition of Experts Corner, Ken Jefferis, Reman Operations Manager, and Cory Pawl, Engineering and Technical Services Manager, Reman at SMS Equipment, explain the advantages and how SMS Equipment is helping customers leverage them.

Why would a mine consider remanufactured components?

There are several reasons. First of all, the cost savings are significant. This is because many major components have large cast steel parts that don't wear or take only minor wear and, can be rebuilt with the proper tooling, and are very cost-effective. By replacing only the consumable portions, we can significantly reduce the cost of acquiring a component in as-new condition. That in turn, translates into a lower cost of ownership for the piece of equipment.

Another advantage is availability. Many of these parts are not available in the customer's inventory at the necessary level. However, with SMS Equipment solutions and exchange programs, we can help bridge that gap through our Reman services.

From our perspective, this also significantly contributes to lessening our carbon footprint because we're able to salvage and reuse the components repeatedly. We are continuously repurposing the steel, reducing the need for the materials to be shipped to scrap yards or sent to landfills.

What is the availability of remanufactured components for Komatsu equipment?

SMS Equipment has maintained a remanufacturing facility at our Acheson, Alberta site for sixteen years. In that time, operations have grown significantly, and so have our capabilities. We now have approximately six hundred active work orders for manufacturing components. To meet this growing demand, we have increased headcount in the facility by 29% since 2020.

We are also strengthening our ties with Komatsu. We are currently awaiting our audit for Level Three certification, meaning our work is Komatsu-certified not only for overhauls but also for remanufacturing components. This achievement is a testament to our ongoing commitment to excellence. Building upon our Level 1 certification achieved in 2022, Level 2 in 2023, and our pursuit of Level 3 signifies a significant milestone in our journey towards even higher standards. Reaching these milestones means we have easy access to Komatsu's technical resources and, equally important, a voice in suggesting improvements based on issues experienced in Canadian mines.

What are some of the most common components that you remanufacture?

There's quite a range. We see a lot of minor stuff like steering cylinders, hoist cylinders, oil pumps, and blower motors. On the other end of the scale, we're rebuilding motors for haul trucks and other large machines. Rebuilding a 3000-horsepower motor is a pretty significant effort. So, we have electrical journeypersons on staff to do that specialized work, as well as some pretty significant test equipment.

How long is the wait time for a remanufactured component?

We have an exchange program that eliminates the wait time. When a customer wants to replace a component, we will supply them with a remanufactured one off the shelf and then receive their worn component for remanufacturing. We then inspect the component to determine what work is required to put it back on the shelf in as-new condition. Whatever we can't rebuild, we replace it with OEM parts.

The condition of equipment varies depending on the mining application and what the equipment was used for, so it's not just a matter of hours. Mine site conditions, along with haulage profiles, play a significant role in the wear rate of the components. We also conduct thorough assessments to ensure the integrity of components. In certain instances, regrettably, we may find that a component has undergone extensive wear or misuse, making it unsuitable for acceptance.

We aim to ensure the optimal performance and safety of all components entrusted to us.

In such cases, we'll work closely with our clients to explore alternative solutions or recommendations.

How do you maintain OEM quality?

One of the keys for us, and this goes back for years, is that we have joined Komatsu on their continuous improvement journey. This means we use Lean methodology to engage all of our people in the facility to look for opportunities to improve quality and lower costs. Another advantage is availability. As our expertise has grown, it's become clear to visitors that this is a pretty unique shop. The work environment is bright and clean, and the best part is you can see that people enjoy what they are doing here. When that happens, you get better quality.

The bottom line:

Remanufactured components can be a powerful enabler for reducing the total cost of ownership of mining equipment. Components that come out of SMS Equipment's Reman facility are factory-approved, cost-effective, and, thanks to the SMS Equipment exchange program, readily available. Furthermore, extending equipment life with remanufactured components reduces a mine's overall carbon footprint.

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