Reman 101

Definition of Remanufacturing

As defined by the American National Standards Institute (ANSI)¹, “Remanufacturing is a comprehensive and rigorous industrial process by which a previously sold, leased, used, worn, or non-functional product or part is returned to a “like-new” or “better-than-new” condition, from both a quality and performance perspective, through a controlled, reproducible and sustainable process.”

Remanufacturing is not the same as recycling, reconditioning, refurbishing, reusing or repairing, but can include all of these activities.

Remanufacturability Criteria²

• Technology exists to restore the product
• The product is made up of standard interchangeable parts
• Cost of the “core”³ is low relative to the cost savings achieved through core reuse
• The product technology is stable over more than one life cycle
• Sufficient market demand exists to sustain remanufacturing operations/enterprises

Benefits⁴

• Job creation (local and skilled)
• Higher profit margins
• New manufacturing techniques
• Better customer relationships
• Reductions in:
  • Raw material consumption
  • Energy consumption
  • CO2 emissions
  • Waste sent to landfill
• Lower prices (by 60-80%)
• Product availability
• Purchasing flexibility

Sectors and Product Areas that can be Remanufactured²

Sector	Product Areas
Automotive & Other Transport	16
Compressors, Turbines, Valves	5
Electrical/Electronic Apparatus	29
Machinery & Related Equipment	29
Laboratory, Medical, & Surgical	12
Office Furniture/Equipment	3
Tires	1
Toner & Ink Cartridges	2
Other	22
Total	121

Remanufacturing Industry Sizes Worldwide⁵

• Japan: €3.8 billion
• Denmark: €300 million
• South Korea: €670 million
• Malaysia: €825 million
• UK: £3 billion
• USA: US$43 billion
• EU: €30 billion

Common Challenges⁶

• Lack of standards and legislation: The lack of a commonly accepted definition and standards for remanufactured products in various sectors has been identified as the most prevalent barrier
• Lack of life cycle design awareness: Many barriers encountered during the reman process could be eliminated if proper design features were included in the early stage of product design
• Lack of sufficient market demand and core supply: A lack of understanding and negative perception of remanufacturing have limited market demand for remanufactured products
• Skill/technology challenges and limited information sharing: Many of the decisions made during the remanufacturing process require technically skilled engineers or technicians

1 – RIC001.1-2016: Specifications for the Process of Remanufacturing: http://www.remancouncil.org/advocate/regulatory/ansi-standards

2 – Remanufacturing: An American Resource. William Hauser, Robert T. Lund. 2012. Boston University: https://www.bu.edu/reman/RemanSlides.pdf

3 – A core is a worn, failed, or end-of-use part, assembly, or product of a branded or Original Equipment Manufacturer product that is retained with the objective of restoring or improving its original functionality through remanufacturing, or for use as a source of parts for a remanufactured product. RIC001.1-2016: Specifications for the Process of Remanufacturing: http://www.remancouncil.org/advocate/regulatory/ansi-standards

4 – Why Remanufacture: Centre for Remanufacturing & Reuse (CRR), UK: http://www.remanufacturing.org.uk/reasons-to-remanufacture.php

5 – Remanufacturing Market Study. European Remanufacturing Network. 2015: https://www.remanufacturing.eu/assets/pdfs/remanufacturing-marketstudy. pdf

6 – Yang, S., M. R., A., Kaminski, J., & Pepin, H. (2018). Opportunities for Industry 4.0 to Support Remanufacturing. Applied Sciences, 8(7), 1177. MDPI AG. Retrieved from http://dx.doi.org/10.3390/app8071177