Issue link: https://read.dmtmag.com/i/578659
I DA U N I V E R S A L S e p te m b e r - O c to b e r 2 0 1 5 43 Cores which are unacceptable: • Visually damaged, such as broken housing, rusty nozzle, broken plunger, broken tip, cracked retainer or damage to any other major component. • Any injector which has been disassembled or physically altered in any way. • The type tag is missing or no identifi cation is present. • Cores which are incomplete or missing any components. Cores which are deemed unacceptable will be returned to the customer, cost of freight to be paid by the customer. Note: Some damaged components CAN be repaired or replaced at an additional cost that is determined once the core has been reviewed. If components are found missing or damaged, the customer will be notified in advance for the additional cost and, once agreed, we will proceed with the necessar y and required repair. After cores arrive and an inspection is done by a trained employee, it is important to ensure the customer is charged appropri- ately if a core doesn't meet the acceptable standard. We also encourage our customers to use the boxes the injectors were shipped in for better protection of the cores. We must admit, though, only 55 percent of the customers do so. Lastly, at DPA, we strongly suggest all customers begin taking the remanufacturing business seriously. As engines get older and new ones come along, this becomes paramount. For instance, 90 percent of our revenue used to be derived from manufacturing. However, this has changed gradually over the last 8-10 years, and now our remanufacturing generates 65 percent of our revenue, while 35 percent is from manufac- turing. This is an inevitable cycle of business that will aff ect all industries for many years to come. ● cores they have paid us for, and a second time for the cores they did not collect). Educating your employees also will insure they don't undervalue a core because of its visible condition. Core components are used, out of service parts, but that doesn't mean they don't have value. The best way to view it is this: a core should be considered a raw material to the fi nished product. Cores are never introduced into the remanufacturing facility ready to use. They fi rst must be inspected visually and, afterwards, tested and disassembled. Every aspect of a core is checked multiple times for quality and usability before being placed in the remanufac- turing process. Cores not only have value because of their outer-shell (body), but also for the useable and undamaged components, since each component is going through strict quality control examinations. Some components are discarded, but it's the viable parts of the core that are functional and pre-assembled that drive remanufacturing. Another necessary step in developing a core management plan is to have a dedicated person or a department. However, this depends on the number of cores being handled, sold and tracked; otherwise the accounting department can manage this aspect, as well. It is recommended to make core recovery a major or sole responsibility for at least one employee. Core recovery isn't necessarily a true profi t center, but that doesn't mean it should be ignored either. In fact, any eff ort invested into it will eventually have positive results. As mentioned above, at Diesel Parts of America, we have a core acceptance policy that needs to be adhered to, and it is imperative that all remanufacturers have such a policy in place that meets their business and customers' needs. For instance, below is our core acceptance policy: • All cores must be in generally good rebuildable condition. • Every core needs to be visually inspected by the customer. • Cores must be packaged and protected very well to protect from any damage during transportation.