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04/19/2012 01:02 PM
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I am a lean engineer trying to figure out BER (Beyond Economical Repair).
I work for a facility that repairs computers on a mass scale.
It would be a "waste (over-processing) to go pass BER.
I already found the definition.
When repairing an item is more costly than replacing it. If it cost more than 80% of replacement value. Something is beyond economic repair when it is cheaper to replace the item than to repair it.
I am looking for an equation.
I believe I need to look at the cost of replacements parts (Hightest to lowest) and the cost of labor, then compare it to our selling price to the customer. Maybe making a matrix of the replacement part cost of each each component (Highest to lowest) and compare it to the labor cost to repair the unit using the above replacement parts.
The repair tech needs to understand it and use this matrix (visual management).
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09/05/2012 11:27 AM
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Gregory,
Have you factored in inspection cost (both incoming pre-repair anid out-going post-repair), re-testing, packaging/handling, shipping/transportation, and possibly customer inspection? There may also be a cost for disposal as well (such as a demilitarization cost or a disposal/reclamation cost) that will need to factor.
I've not found an "equation" but there are several models that assist in the determination of BER; most are buried within LCC models and allow you to set the threshold (e.g. 50% instead of 80% of cost.
Thank you,
Shifu-T
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