Production data from [facility] shows every year, millions of tonnes of electronic waste are generated globally, even as shortages of essential electronic components leave manufacturers struggling to maintain production. This paradox of abundant discarded hardware alongside unmet demand underscores the urgent need for a circular approach in industrial automation.

This approach redefines the traditional 'take-make-dispose' lifecycle, emphasizing the restoration, reuse, and recycling of critical equipment. By extending the lifespan of essential components such as PLCs and I/O modules, companies can not only reduce environmental impacts but also enhance their supply-chain resilience. With refurbishment costs often running 30 to 50 percent lower than purchasing new equipment, investing in a circular economy model can significantly improve budget predictability during times of component scarcity. (Circular economy in electronics: Extending hardware life)

Economic Advantages of Circular Strategies

Economic analysts estimate that adopting refurbishment and recycling in industrial automation can lead to substantial savings-potentially hundreds of thousands of dollars-for procurement teams managing multiple production lines. By avoiding forced upgrades-where entire machines must be replaced due to the unavailability of a single module-operations can maintain continuity without incurring significant capital expenditures or incurring unnecessary downtime.

For instance, the average annual cost of machine downtime in manufacturing sectors such as automotive can range from $22,000 to $50,000 per incident. Therefore, prioritizing equipment repair over replacement is economically advantageous, particularly when older systems continue to meet production targets.

Strategies for Extending Hardware Lifespan

To effectively prolong the life of essential hardware, manufacturers can utilize various strategies, including board-level repairs that involve swapping out components like capacitors and connectors. This method is often more economical than purchasing new modules, offering cost-effective solutions while minimizing waste.

Implementing preventive maintenance protocols also plays a crucial role in extending equipment lifespan. Simple practices, such as improving cabinet airflow and controlling environmental factors, can significantly reduce operational failures, further enhancing the useful life of critical components.

Navigating Obsolescence and Supply Chain Resilience

Manufacturers frequently confront the challenge of obsolescence as parts become outdated or receive end-of-life notices from original equipment manufacturers (OEMs). However, reliance solely on OEMs can be risky, particularly when demand surges or supply chain disruptions arise. The emergence of secondary markets for refurbished parts provides a viable solution; established suppliers serve as a safety net against supply chain vulnerabilities.

Maintaining a diverse supplier portfolio that includes verified independent distributors can help mitigate risks associated with reliance on limited suppliers. Collaborating with trustworthy partners ensures access to quality refurbished components, which is integral to a proactive maintenance strategy.

Sustainability and Future-Proofing Manufacturing

Maintaining legacy systems not only keeps production lines operational but also aligns with sustainable practices aimed at reducing electronic waste. Industries can maximize the lifecycle of their existing machinery, thereby functioning more sustainably without the need for extensive overhauls that disrupt operations.

The combination of maintaining legacy systems while integrating modern technologies-such as IIoT-through retrofits exemplifies how to derive analytics and operational insights at manageable costs. The future lies in merging innovation with sustainable practices to optimize manufacturing efficiency.

Constraints and tradeoffs

• Potential quality variability in refurbished parts

• Storage requirements for spare components

• Certification and warranty complexities with third-party suppliers

Verdict

Embracing circular economy principles not only mitigates environmental damage but also drives financial performance and supply-chain resilience for manufacturing operations.

As manufacturers increasingly embrace circular economy principles, operations managers can anticipate both environmental benefits and improved financial performance. A thorough review of current asset management strategies is essential as plants transition toward more sustainable practices without compromising productivity or capital efficiency.

Key numbers

• 50% (mentioned in Circular economy in electronics: Extending hardware life)

• 4.0 w (mentioned in The Strategic Value of Legacy Components in Automation)