Today’s manufacturers face a difficult ledger: capital expenditure plans for future plant automation vs. unplanned downtime and budget-draining costs associated with the legacy equipment they’re using in the meantime.
Stakeholders recognize the value of retrofitting in buying time until they can greenlight large scale automation projects, but when margins get tight, operational decisions get tougher.
“It’s easy to look at retrofitting as a temporary fix – an expense that drains the profitability intended to fund new automation projects,” said Mitch Witcher, Operations Manager at Automated Solutions Inc. ASI is an Alabama-based automations and robotics firm serving the Southeast with custom, turnkey solutions.
“Small to mid-size manufacturers in particular find it difficult to justify the cost of a retrofit when they’re working toward new capital equipment,” he said.
It generally takes only one critical parts procurement disaster to change that outlook.
With price points as low as $5,000 in many instances, small retrofits can pay for themselves many times over by preventing extended bouts of unplanned downtime while plants scramble to source legacy parts needed to continue operating.
The Impossible Quest: Sourcing Parts for Aging Machinery
On many production lines, equipment is entering its second or third decade of use. Its outdated safety features, controls and other components are failing. Maintenance managers can no longer obtain replacements from original manufacturers, so they’re left wondering where to find replacement parts for equipment that hasn’t been manufactured in years.
Production can be halted for weeks or months during the search, impacting production schedules and delivery timeframes and triggering penalties for missed shipping deadlines. If a part can’t be sourced, labor costs may rack up with the hiring of contractors for troubleshooting, rebuilds and repair.
“It is common for equipment to be in good mechanical condition, but the controls/electronics begin to fail and become unobtainable,” Witcher said. “Choosing to do a retrofit is a huge cost and production savings over letting equipment failure dictate timing and decision making. And the more critical the equipment is to production, the more important this issue becomes.”
One of ASI‘s clients lost three full weeks of production when a PLC (Programmable Logic Controller) in use on the production floor stopped working and no replacement part could be found. Desperate to try to continue some production, the client incurred steep labor costs as it hired manual labor to step in and perform heavy lifting tasks throughout the shutdown, a costly and inefficient workaround.
“We had to do an emergency retrofit for them,” Witcher said. “We installed a new PLC, created the logic to make the machinery run, and got them up and running again.”
The Big Picture: Small Retrofits, Huge Savings in Downtime
The growing scarcity of parts for legacy equipment poses a profitability risk that is changing the way C-suite leaders in the manufacturing field approach operational efficiency and risk mitigation.
They’re thinking smaller as part of the bigger picture, recognizing the large proactive value of small, affordable technology upgrades on existing production lines.
Choosing the right projects, even small ones, can have surprising benefits. Technological advances mean any replacement part will perform better, assuring throughput with fewer runtime interruptions.
Small-scale retrofits are emerging as the manufacturing industry’s strategic bridge to automation reliability, spanning the chasm between aging equipment that is no longer supported and budget constraints that preclude replacement.
If costs come in under six figures, it makes financial sense to undertake small to medium upgrades that improve operational efficiency, stem the flow of revenue lost to unexpected shutdowns, and better position companies to fund their long-term automation strategies.
“These minor retrofits – with costs as low as $5,000 in some instances for a simple control systems hardware update – can save many times that amount in just one unplanned shutdown, and position a plant for reliability,” Witcher said.
Some small retrofits require no more than a weekend for installation. And it’s often short-sighted to view them as temporary fixes, because even the smallest project can be designed with the plant’s future full-scale automation projects in mind.
“Starting small doesn’t mean ignoring the big picture,” Witcher said. “It means zeroing in on the most effective updates a plant can make right now. At ASI, we design every small upgrade to be forward-compatible, ensuring that our clients continue to move seamlessly toward their long-term business and automation goals. Whether we are installing a single sensor kit or engineering a multi-million dollar robotics line, our goal at ASI remains the same: strategic growth that fits the client’s current budget and aligns with the client’s vision,” Witcher said.
Small-Scale Retrofit Examples: Low Price Points, High Impact
To move away from reactive repairs and build a bridge to future scalability, Witcher suggests manufacturers allocate retrofitting dollars on tactical interventions with the highest returns.
Here are three examples of relatively “low entry” investments with high impact:
- Legacy PLC Upgrades Addressing Operational Risk
Legacy controllers such as the Allen Bradley SLC500 may still be “running” after 20 years, but they are operating at an imminent risk of obsolescence with unplanned downtime exposure and high business continuity risk. - HMI Replacements Enhancing Visibility
If your plant’s Human-Machine Interface (touchscreen) is more than 15 years old, finding a replacement may involve scouring secondary markets for used parts with no guarantees. Modern HMIs offer higher resolution, better durability and more intuitive controls that reduce operator error. More importantly, they provide the visibility needed to manage complex processes and avoid unplanned downtime. - Servo Drive Replacements Improving Precision
Many plants continue to rely on older servo drive models such as the ABB E100 or E180S. While these models served the industry well for years, they are increasingly difficult to support and lack the precision required for modern high-speed production.
“Targeted retrofits like these can have a striking impact on a plant’s operational reliability, “ Witcher said. “We make sure they fit seamlessly into future automation plans, and help manufacturers protect their delivery deadlines, and their margins, as they move toward those larger capital improvement projects.”
Production Gains: The Surprising Value-Add in Small Retrofits
Today’s standard replacements often include “bells and whistles” that were once premium or unavailable upgrades: enhanced safety features, better energy efficiency, and higher-resolution feedback.
But that extra value doesn’t come with an extra price tag. In today’s market, the extra value is baked into the cost of standard hardware.
“The standard price for a modern replacement often provides a significant leap in capability over the legacy model, allowing your plant’s existing machinery to perform with a level of reliability that rivals much newer equipment,” Witcher said.
How ASI Helps Reduce Unplanned Downtime
Which small retrofits would bring the most value to your production line?
Manufacturers ready to explore the strategic value of small-scale retrofits can learn more by talking to an experienced ASI integrator. Our team members will be glad to answer your questions or schedule a full system inspection to identify how and where an upgrade could deliver the most value in your plant.
ASI commissions all types of robotics and automation, offering design services, free rough budgetary quotes on automation projects, free onsite automation project evaluation, and affordable engineering studies.
