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NASTRA ‑ CELEBRATING 40+ YEARSINDUSTRY NEWS
PARTS WASHERS–Upgrading Advice
SUCCESSION PLANNING–Possible Pitfalls
ENTREPRENEURS–Surviving Change
SHIPMENT PROTECTION–Freight Faux Pas
AUGUST • 2019THE OFFICIAL PUBLICATION OF THE AUTOMOTIVE PARTS REMANUFACTURERS ASSOCIATION
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sourcing network.
to the Largest RebuildersWorldwide
Supplier#1•Core Connect
• Catalytic Converters• CorePro
• RAS Bid• Recalls• CAT Pro
• CorePro Mobile• CorePro Mobile• Metals Recycling
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1-800-633-0162 | www.coresupply.com
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www.apra.org • REMAN CONNECTION • AUGUST 2019 • 3
DO THE MATH!
Let’s talk about the value of APRA Membership and the Value of Exhibiting at the Big-R Show.
Starting with the Big-R Show ... let’s run the numbers. It costs $2000 for a 10x10 booth space, about $2000 to “bring” your booth to Las Vegas, $400 per night for your room and food, $600 for airfare (Southwest) and $400 for brochures, handouts and giveaways at your booth. It takes two people to properly “man” the booth. If you “do the math”, the total cost for two people working the Big-R Show is about
$6400.00. There will be approximately 3000 people walking around this show. That means, it will cost $2.13 per person for you to be able to reach out to 3000 people at the Show. I know what you’re thinking, “But, Joe, I don’t sell to all 3000 attendees. I bet I sell to only 100.” Yes, 100 is a realistic number. The show is open for a total of 10 hours. If the two of you speak for 5 minutes to each person, you could talk to about 240 people during that 10 hours. So that brings the cost to $26.66 per person when you’re looking at your ROI (Return on Investment). If you were to call on each of those customers individually during the year, at $500 for travel and expenses per sales call, you could save 95% on your company’s annual travel budget! If you include the sales you would make during the Show, your savings get even better! From a branding or marketing standpoint, it’s well worth the value to exhibit (or at least attend) the Big-R Show and hand out your business cards!
Let’s look at APRA Membership Dues, using the lowest Remanufacturing category of a 1-2 person shop, which is $255.00 per year. I have people ask, “What do we get for $255.00?”. Well let me tell you. For starters, you get your company listed in the APRA Membership Directory. (If you’re a Supplier, you also get listed in the Global Sourcing Directory, in addition to the APRA website.) Of course, you get hefty discounts from APRA’s “Savings4Members” progam. But let’s say you don’t take advantage of that monetary benefit. If you were to place a quarter-page advertisement in any local newspaper or trade magazine, it would cost a minimum of $250.00. Bang! There’s your money back … just like that! Second, when people call the office (and they call a lot) asking, “Where can I find a Remanufacturer for Starters (or Turbos or ECUs, or any Automotive Component)?” we give them YOUR name and contact information. That’s like having a salesperson promoting you for $255.00 per year. What do you pay your sales people today? I bet it’s not $255.00 per year.
Yes, there is definite value in being an APRA member. Just “Do the math”!
I always welcome response or rebuttal to my comments at [email protected]
Respectfully,
Joe KripliAPRA President
INDUSTRY CALENDAR
Kripli’s CornerContents
AdvertisersJoe Kripli
COPYRIGHT 2019/AUTOMOTIVE PARTS REMANUFACTURERS ASSOCIATION. The APRA Reman Connection is published as a membership service by the APRA. The opinions expressed in the articles in this publication are those of the author of the articles and not the publisher. While every reasonable attempt has been made to assure that the information in this publication is accurate, the publisher assumes no responsibility for any omissions or errors, nor for the application of any advice or suggestions in any particular situation. Due to space limitations, all items published are subject to abridgment. Unsolicited items will not be returned.
Kripli’s Corner ......................................3Industry Calendar ...............................3Industry News ......................................4In Memoriam–Mark Childress ..........5Entrepreneur Mentality ......................7Shipment Protection ...........................9Shipping To Canada ............................10Upgrading Washer Equipment ..........11Energy Procurement ...........................15Succession Planning ............................17Transmission Tech ...............................19Nastra ....................................................22
RAS Cores (inside front cover) ..........2BPS Cores, Inc ......................................6MERA Conference ..............................8Ashburn Chemical ..............................8PartRef ..................................................10WAI .......................................................14APRA Savings Programs ....................16World Reman Conference ..................18Big-R Show ...........................................21ASE Industries (inside back cover) ...24
The APRA REMAN Connection Volume 29, Number 2Office Contact:Phone: (703) 968-2772FAX: (703) 968-2772Email: [email protected]
APRA President:Joe Kripli - [email protected]
APRA Chairman:Tom Dunn - [email protected]
REMAN Connection Editor:Wes Grueninger, Sr. - [email protected]
MERA Sustainable Manu-facturing ConferenceOct 1, 2019Metro Detroit, Michigan
ReMaTec AsiaOct 11-13Guangzhou, ChinaRIC-RIT World Reman Con-ferenceOct 9-10, 2019 Rochester, New York
ATRA ExpoOct 30-Nov 2Las Vegas, Nevada
APRA Big-R ShowNovember 1–2, 2019Las Vegas, Nevada
This year’s ReMaTec event brought reman recognition to a whole new level. The show’s Opening Ceremony
announced the Remanufacturer of the Year Awards, which recognized the achievements of Knorr-Bremse, Atlantic Automotive Enterprises, and Fernand Weiland (FJW Consulting). The InnovationLAB and the ReMaTec Theatre were particularly popular, with special keynotes from MAHLE, Volvo, and PwC Autofacts. An Industry Dinner at a historical venue at Dam Square in Amsterdam brought OEMs and remanufacturers together for the first time to discuss the changes that will disrupt the future of the reman industry.
During ReMaTec 2019 in Amsterdam, visitors were able to enjoy Keynote and Expert sessions, and the Live Demo on Augmented Reality (AR). There were side events held during the show, including the International Conference on Remanufacturing (ICoR), the Dutch Aftermarket Day and the first International Forum on Wind Turbine Remanufacturing, to name a few. Four out of five visitors who attended the show were international visitors, which brought the global reman industry to Amsterdam.
While visitors and exhibitors were conducting business on the show floor, the InnovationLAB was full of professionals ready to take on new insights from the industry. The ReMaTec Theatre welcomed an engaged audience, which gave way to interactive Q&As during keynotes from MAHLE, Volvo, and PwC Autofacts.
Taking home the Remanufacturer of the Year Awards
The Remanufacturer of the Year (RotY) Awards, recognize the achievements in technical excellence, commitment to quality, impact on the reman industry, and customer service. On the opening day of the show, this year’s award winners were Knorr-Bremse (Best Reman Process Optimization), Atlantic Automotive Enterprises (Best Reman Business Innovation), and Fernand Weiland of FJW Consulting (Best Reman Ambassador).
Understanding the future of the reman industry.
The first keynote on “Dual Strategy for Powertrain Devel-opment of Internal Combus-tion,” was given by Christoph Dutschke, Technical Coordina-tor of Trainings at MAHLE Af-termarket. Dutschke took the audience along on MAHLE’s vi-sion for what the future of drive-trains will be.
Volvo’s Dick Cruslock, Strat-egy and Program Manager, Global Customer Service, gave a keynote on Volvo’s remanufacturing program, which restores replaced parts to their original specifications. Christoph Stürmer, Global Lead Analyst at PwC Autofacts®, gave a keynote on Tuesday on the “5 Trends Transforming the Automotive Industry.” He discussed the generic types of mobility and the demand for mobility transformation and regulations based on demographic dy-namics and urbanization. Sturmer noticed people “are very interested in understand-ing the future of their industry.” He contin-ued by explaining that “the opportunity of the remanufacturing industry is going to shift from fixing parts that are already bro-ken to replacing and refurbishing parts that are outdated or need a technical change.”
Industry dinner
New to this year’s event was the high-end industry dinner at the “Royal Industrial Society Club” in Amsterdam. A total of 75 leaders in the remanufacturing industry and OEMs were invited to connect with each other during a dinner at a historical location at the Dam Square facing the Royal Palace.
ReMaTec in China
The next step of ReMaTec is going to be in China, and it will be the first remanufacturing fair of the country. The launch edition of ReMaTec Asia is going to take place in Guangzhou from 11–13 October 2019.
APRA President Joe Kripli with Fernand Weiland and Tim Roth (BBB Industries)
Volvo’s Dick Cruslock giving keynote speech at the ReMaTec Theatre (Photo: Rogier Bos)
Jens Lindholm (right) presents Knorr-Bremse’s Daniel Koehler the RotY Award for “Best Reman Process Optimization”.
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INDUSTRY NEWS:10th ReMaTec Took Reman Industry By Storm
4 • AUGUST 2019 • REMAN CONNECTION • www.apra.org
ATC Drivetrain (“ATC”), a lead-ing independent remanufacturer of automotive drivetrain compo-
nents headquartered in Oklahoma City, Oklahoma, announced today that it has acquired ATP Automotive Transmission Remanufacturing Specialists Limited, A.T.P. Electronic Developments Limited and ATP Holdings USA, LLC (collectively “ATP”) from ATP’s founder Alan Smart. Financial terms of the transaction were not disclosed.
Founded in 1969, ATP is a Cannock, United Kingdom-based leading European independent remanufacturer of automatic transmissions, including torque converters and automated manual transmissions, electronics and mechatronics. It is also a manufacturer of diagnostics systems and provides associated services. ATP’s client base includes various European and global OEMs and suppliers in Europe and North America.
ATP Founder Alan Smart said, “April 2019 marks ATP’s 50th year in business, and I felt it was an appropriate time to secure the next phase of ATP’s continued growth. The exciting combination of ATC and ATP will allow for ATP to increase the ways in which we can serve our customers and it secures the future of ATP’s employees, many of whom have over 30 years of service. I am confident that ATC is the right permanent home for my life’s work, and it will continue to flourish under the leadership of ATC CEO Greg Heald and the rest of the ATC leadership team.”
Greg Heald, ATC’s President and CEO and member of its board of directors, said,
“The teams at ATC and our private equity sponsor, Crestview Partners, have a great deal of respect for Alan Smart and for the decades of hard work he has committed to building ATP as its founder and chairman. Mr. Smart’s vision has driven the growth and evolution of ATP from its beginning 50 years ago to its position today as a leader in the remanufacturing industry.”
Mr. Heald continued, “We are excited to bring together these two companies which not only complement each other in the areas of technology, footprint and customer base, but also share common core values focused on providing market-leading service to our customers, team members and shareholders.”
Alex Rose, Partner and Co-Head of Industrials at Crestview Partners, said, “Since our acquisition of ATC in February 2018, ATC’s leadership team and board have been focused on pursuing global expansion and technology diversification in support of ATC’s customers’ needs. The combination of ATC and ATP creates a company with over 130 years of global automotive remanufacturing experience which will expand ATC’s ability to provide products and service to the company’s growing customer base around the world.”
About ATC Drivetrain:
ATC Drivetrain is an Oklahoma City, Oklahoma-based remanufacturer of transmissions, and engines and related components for light-, medium- and heavy-duty vehicles. The company’s services include process and salvage engineering, warranty root cause analysis and testing, machining for repair and
salvage of components, as well as recycling of non-reclaimable material. ATC Drivetrain serves automotive original equipment manufacturers for both in-warranty and out-of-warranty products and services throughout the United States.
About ATP:
ATP is a Cannock, England-headquartered remanufacturer of powertrain and electronic products for both OEM and aftermarket sectors. ATP is the winner of the prestigious 2016 Queen’s Award for Enterprise in the innovation category. The company’s products and services include remanufacturing automatic transmissions, including torque converters and automated manual transmissions, electronics and mechatronics, as well as manufacturing diagnostics systems and providing associated services.
About Crestview Partners:
Founded in 2004, Crestview is a value-oriented private equity firm focused on the middle market. The firm is based in New York and manages funds with ap-proximately $9 billion of aggregate capital commitments. The firm is led by a group of partners who have complementary ex-perience and distinguished backgrounds in private equity, finance, operations and management. Crestview has senior invest-ment professionals focused on sourcing and managing investments in each of the specialty areas of the firm: industrials, me-dia, energy and financial services.
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INDUSTRY NEWS ... continuedATC Drivetrain Acquires International Reman Leader
IN MEMORIAM — Mark William Childress 1955–2019Mark Childress, 63, of Cincinnati, Ohio died
suddenly on Tuesday, May 14, 2019. Born in Columbus, Ohio to Eleanor (Krause) and the late John Childress, he is survived by his loving wife Sheryl (Marcum); beloved children Jason (Jill), Tara, John, and Natalie; caring sister Carol (Carey) Ball; and his baby girl Daisy Doodle (Dog).
Mark spent his entire career in the Remanufacturing Industry, working for companies such as Diesel
Injection Service of Louisville, Delphi, Flight Systems Electronics Group, Dipaco, WABCO, LKQ, Instrument Sales and Service, and D&W Diesel.
Mark was known best for his continual positive outlook on life, his smile, and his sense of humor.
Mark was always there to help and support his friends, customers, and business associates.
He gave it his all, he was loved by many, and he will be missed.
www.apra.org • REMAN CONNECTION • AUGUST 2019 • 5
Goldfarb & Associates, Inc. was honored with an Export Achievement Award by the U.S. Department of Commerce’s Deputy Assistant Secretary for U.S.
Operations, Ana Guevara. Congressman Jamie Raskin (MD-08) joined the ceremony for Goldfarb & Associates, a client of the U.S. Commercial Service.
The U.S. Commercial Service Export Achievement Award program was created in 2001 to recognize small and medium-sized enterprises that have successfully entered the international marketplace for the first time or that have successfully entered a new market.
“We’re proud that federal assistance helped enable Goldfarb to expand their customer base, garnering the firm more than 100 international customers and totaling over $2.8 million in repeat business,” said Deputy Assistant Secretary Guevara. “Our Commercial Service offices around the country assist U.S. businesses in assessing their export potential and provide solutions that make their goals of operating internationally a reality.”
The Rockville-based distributor has been in business twenty-two years. The company exports injection pumps, fuel injectors, and turbochargers to over 60 countries. In the six years that Goldfarb & Associates has been working with U.S. Commercial Service, international trade specialists have delivered on business opportunities in twelve countries including Chile, Guatemala, Honduras, Mexico, Nicaragua, Panama, Peru, Thailand, the Netherlands, Turkey, UAE, and Vietnam.
“With the help of the U.S. Commercial Service’s Gold Key program and SBA’s State Trade Expansion Program, Goldfarb & Associates has steadily grown its global sales year after year through international trade shows, site visits abroad, and the international optimization of its website,”
said Operations Manager Scott Goldfarb. “We are currently expanding from an 11,000 square-foot warehouse to a new 26,000 square-foot facility, with plans to continue increasing our global footprint through these proven strategies.”
“The company’s exports have driven the firm’s facility expansion and created jobs here in Rockville,” said Congressman Raskin. “Given the complexities of modern trade, we need to do everything we can to help U.S. businesses increase global sales and create new jobs through exporting. I am proud to present the Export Achievement Award to our district’s own Goldfarb & Associates today.”
In 2018, exporters like Goldfarb & Associates supported over 45,000 jobs in Maryland and contributed to the state’s $12.1 billion in goods exports.
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INDUSTRY NEWS ... continuedGoldfarb & Associates Wins Export Award
Ana Guevara and Saul Goldfarb with Congressman Jamie Raskin - July 23, 2019
6 • AUGUST 2019 • REMAN CONNECTION • www.apra.org
When business changes, so do entrepreneurs’ ideas about how to re-invent themselves in
particular markets. So much information can be found about how to maximize each area of their business that the challenge is to filter through all that advice and know where to focus. Even in the remanufacturing sectors, different-sized businesses will take drastically different approaches. As the world changes, things that once worked well to raise your bottom line may now be flat or just inappropriate. A “remanufacturer entrepreneur” must be as dynamic as the world’s business environments.
Each remanufacturing business has a unique story of how it came into existence and survived—even with the odds possibly against them. Each account of what propelled a business forward is always a story of strength, regardless of how it is narrated. The pitfall of the majority of failed businesses is that their stories didn’t change when the world did.
Customers want something that provides them with value, connection, education, and problem solutions. With technological changes in the world, “big business” has found some opportunities to offer more of the core needs of the consumer. In my opinion, the company that is in the best position to provide the customers’ core needs is the “direct-to-consumer entrepreneur”.
As a small-business, we have a stronger personal connection to our customers. Through this personal connection, we can educate our customers to utilize products that fit their particular needs better. And because we help them to optimize their use of products, our value isn’t evaluated solely on the price of our goods, but on our ability to reduce the profit-eating downtime our customers often experience. We also have the opportunity to help remove some of the work-related problems from our customers’ busy lives.
Corporate businesses and mid-sized companies depend on volume to make a profit. I have heard from many business people, that the bigger they get, the less profit they can extract from their sales.
The overhead necessary to serve a greater customer base is just one of their challenges. As they create more jobs to fulfill the work, they also have to create more internal jobs just to manage the employees. The hierarchy created to manage human resources, is a big challenge to any organization. It slows down the organization’s ability to quickly respond to the changes that can happen in various markets.
As a direct-to-consumer remanufac-turer, we have the ability to make changes much faster. The approach to each custom-er can be tailored to their specific needs, providing much more personal attention than a larger company with cookie-cutter models. I don’t say this to foster division. On the contrary, larger companies can use their strong relationships with their smaller counterparts to deliver better service to the consumer.
Several years ago, the oil-field market in the Gulf of Mexico experienced a downturn due to repercussions of BP’s oil spill and the drop in crude oil prices. Our company’s story changed dramatically then, and so did we. A big part of our story was that we have always focused on our continuing education in order to keep up with the world and make remanufactured products to the best of our abilities. But when business dried up, I had to leave our production shop to supplement sales. I had to go out “in person” to our customers … working with them ... helping them to troubleshoot and diagnose their starter, alternator and electrical problems. This has been a game changer for us and our customers. I witnessed how many of our product failures were actually caused by conditions which were NOT related to product quality. I worked closely with mechanics, purchase managers, salesmen, and whoever would listen to me. Money was tight, and we couldn’t afford to drop prices. So I strove to become so important and helpful to our customers, that my value to them was more than just money. I changed our “story” to become “a business that added value to our customers’ bottom lines”. Many opportunities began to arise! I helped customers to optimize their inventories and worked with managers to put systems in
place to check batteries and cables. I began teaching everyone who would listen about the fundamentals of voltage-drop testing and was able to prove its importance with hands-on demonstrations.
On the test-bench side of remanufacturing production, evaluation of the information gained by looking at only the starter or the alternator, isolated from its system, is limited. A lot of the information we have to work with is only verbal communication with the person bringing the unit to the shop. An engine, with its electrical circuits and mechanical systems, is not a “static” system. The entire system is “dynamic”—meaning that even small changes in usage can cause exponentially different problems! As I continue to mature as a remanufacturer and a mechanic, my approach to fixing a problem, now has me looking at the entire system, as opposed to a one-approach-fixes-all concept. This has me going back to the basics. Voltage-drops, engine compression, electrical connections, electrical weather-protection, modifications and improper usage procedure are just a few examples of hidden information which can lead to unit failure. What I have learned is that many of the product problems that are often blamed on vendors, actually have external causes other than product quality. I am not saying that product quality issues do not occur. But being out in the field has enlightened me as to the causes of many problems that I once blamed on product quality. Now that I am involved directly with our customers’ problem-solving, they are happier, knowing that the root causes of their problems are being addressed, and repeated failures are less likely to occur.
Every challenge put in front of us, will change how we approach our business—for good or for bad. It takes the right focus to make a good development from a bad situation. When a bad situation results in barely surviving a market, that’s when it’s time to change your “story” and get stronger.
Mike Conner is the owner of Conner’s Repair Service, Morgan City, Louisiana.
ENTREpRENEUR MENTALITY:Surviving Change By Adding Value
By Mike Conner
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www.apra.org • REMAN CONNECTION • AUGUST 2019 • 7
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The Association for Sustainable Manufacturingpresents
Sustainable Manufacturing Conference | Fall 2019September 30, 2019 • October 1, 2019 • Detroit, MI
MERA Fall Conference Highlights at a Glance:Sept. 30, Automotive Hall of Fame, Dearborn, Mich.•2–4 p.m. MERA Executive Council Meeting - Bonus
Session•4:10–5:40 p.m. Automotive Town Hall, presented by
General Motors•6 p.m. ReMIX Networking & Strolling Dinner
Oct. 1, Doubletree Dearborn/Detroit Hotel, Detroit•8:50 a.m. What’s With This Economy? Insights from the
Federal Reserve•9:30 a.m. The Good, the Bad, and the Ugly: State of the
Automotive Core Market•10:30 a.m. Facility Tour at Detroit (Group 1)•11 a.m. Future Products: Preparing for the Reman of
Tomorrow•12 p.m. Networking Luncheon•12:45 p.m. Facility Tour at Detroit (Group 2)•1 p.m. Online Marketplace Opportunities: Amazon
Renewed•2:30 p.m. Commercial Vehicle Town Hall, presented by
Daimler Trucks North America•4:15 p.m. Conference Close
Register Today! (APRA members receive a discount! )Call Cheryl Dry 1-248-750-1280Be sure to mention that you are an APRA member.
8 • AUGUST 2019 • REMAN CONNECTION • www.apra.org
A few months ago, our ops team received a call from one of our shippers in the dismantling/
recycling arena ...This shipper, whose name and company
name I will not mention, was clearly distraught and openly irritated, because he had taken a high value, one-of-a-kind irreplaceable engine in for remanufacturing, and the carrier had lost the engine (which carried a $13,000 value) on the return trip back to his customer.
When I heard about the call, I discussed it with my operations team and we all agreed that we would expedite the search for the lost engine. But given that it had already been missing for a couple of weeks, we also agreed that the chances of the carrier finding that lost engine were slim to none at best.
The worst part about a situation like this is that when we receive a claim for a lost or damaged shipment of a used or remanufactured part—even when we file a successful claim, the carrier will award only scrap value, ranging from 10 to 50 cents per pound which only adds insult to injury on a claim of this nature. If, however, this shipper would have insured this engine through our Product Protection Plan (which is an option on our shipping platform) our company would have been able to reimburse them for the full value of the engine PLUS the cost of shipping.
Herein lies the problem. Although this particular shipper was given login credentials to our online platform, and was even shown how to use that platform, they chose to pick up the telephone and call this shipment in. Although they have been in the business for many years and knew they were dealing with a high value, one-of-a-kind, irreplaceable item, they failed to mention this or even ask about our insurance options.
Sure enough, the carrier ran the search, and I received several notifications through their process that the engine had not been found. Upon completion of that 45-day process, I received final notification that the freight had not been found and that they had officially “closed the loop” on the
search. Next came the part that I was not
looking forward to—having to tell the customer that the shipment that had been entrusted to them by their own customer was officially lost. Given they had opted not to use our Product Protection Plan, the best I could do was to serve as their claims “advocate”. Since they had shipped a remanufactured item they were now at the mercy of carrier coverage and would receive only scrap value on the claim.
Well, needless to say, that call did not go well at all. The customer was understandably unhappy and continued to blame me and my associates for not insisting he use our Product Protection Plan. I reminded him that the option was highly visible within the workflow of our online platform, but he shared that they only call their shipments in by phone and continued to use the “nobody ever told me” defense.
The outcome was not at all good for him. Although he had been in business for numerous years, he neglected to recognize that he was the custodian of a high-value irreplaceable item and that this particular item needed special care and consideration for his customer. This incident became a highly uncomfortable situation for all parties involved, so I think it’s extremely important to share a handful of suggestions that will help you personally avoid a similar situation.
Use Your TMS
Pretty much all third-party logistics companies provide a Transportation
Management System (TMS). A good TMS provides multiple carrier
options: on-board insurance options and the ability to get your rate, move your freight and track your critical shipments. If you are not using your carrier’s TMS, call them today and ask them to set you up and orient you to their platform.
Know Your Carrier’s Coverage
If you are working with a local carrier, ask them what their coverage limits are. If you are working with a third-party logistics provider (3PL) their TMS should outline the specific coverage limits for each specific carrier.
My company’s TMS outlines carrier coverage and also displays an additional insurance option. If our shippers submit a claim for damage or loss, we are able to reimburse them for what they sold the part for PLUS their initial transportation cost. If you don’t know what your coverages are, and they are not displayed online, call your carrier, and get them before you tender your shipment.
Always Consider Additional Insurance
Always consider the Additional Insurance Option. I see the claims data each and every month, and let’s just say that you’d be wise to consider alternative insurance option for items of high value and items that may be highly susceptible to damage. This type of insurance usually costs about $10-$15 per thousand in value and should be considered for engines,
SHIpMENT pROTECTION A MUST:An Unforgettable Freight Faux pas
By Steven P. Haas—DLS Worldwide
www.apra.org • REMAN CONNECTION • AUGUST 2019 • 9
transmissions, PTOs, cabs, glass and sheet metal.
Report Lost or Damaged Shipments Immediately
When you do have a claim, report that claim immediately. Most programs stipulate that concealed damage be reported within forty-eight hours of delivery. So, the moment you notice the damage, pick up the phone to report the claim immediately, and worry about processing the paperwork
later.
A Picture is Worth a Thousand Words
Remember—an ounce of prevention is worth a pound of cure. Everyone carries a smart phone these days, and it takes nothing to get a photo of the item and its packaging before the carrier picks it up. When we process claims on behalf of our customers, that is the kind of ammunition we are looking for, and it always helps us fight the good fight for you.
NOTE: Steven P. Haas is a board certified marketing consultant, seasoned sales professional and an Association Accounts Representative for DLS Worldwide. He administers the APRA freight program and has negotiated special freight rates and carrier concessions for APRA members. You can contact Mr. Haas at 612-296-1806 or online at [email protected] to request access to the APRA program and platform.
FREIGHT FAUX PAX ... continued
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Let’s pretend you’re a manufacturer who just sold your first bulk order to a customer in Canada. Before you can
do a happy dance, you need to figure out how to get it there. Intra-continental shipping is
no sweat these days. You’re a pro. But, cross-border shipping? There’s so much to consider: customs, bills of lading, and NAFTA (or is it USMCA now?) … where do you begin?
1. First things first. Choose a carrier.Shipping to anywhere within the contiguous 48 is old hat.
You’ve been using the same trusted carrier for a while now. There are new factors to consider now that you’re venturing north into Canada. It may be part of the same continent, but as its own country, Canada has different cargo rules and regulations. You’ll want to partner with a company that has the experience and know-how to get your goods safely and quickly through customs and to the destination.
2. Speaking of customs …Get yourself a customs broker. In addition to hiring a
knowledgeable carrier, these border-crossing pros grease the wheels (so to speak) for International shipping. They provide you with real-time tracking, keep you current on any regulatory adjustments, and ensure your documents are complete.
3. And speaking of documents …Get ready to do some paperwork—OK, a lot of paperwork!
Every shipment to Canada requires a Bill of Lading and a Canadian Commercial Invoice. You might also need to get a Certificate of Origin, depending on what you’re shipping and whether it meets the NAFTA rules for duty-free customs clearance. These documents, when accurate, will help your shipment clear customs quickly.
4. Now you’re ready to cross the border.You and your customs broker have dotted every “i” and
crossed every “t”, and now your shipment is ready to cross the border. With your freight loaded up and the carrier en route to your new Canadian customer, your broker will send all of the necessary documents to the Canada Border Services Agency
(CBSA), which oversees goods flowing into and out of the country. If everything is completed properly, there’s very little to worry about now. Sit back and relax!
APRA members receive discounted services through YRC Freight. Save up to 20%! www.apra.org/page/MembershipValue
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IS YOUR CANADA SHIpMENT READY?3 Things To Do To prepare Your Cross-Border Shipment
By YRC Freight
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10 • AUGUST 2019 • REMAN CONNECTION • www.apra.org
Parts Washers Are Important In Manufacturing
This white paper outlines the main factors to consider when replacing or upgrading aging legacy parts washer equipment. Important innovations and advancements in the variety of parts washer systems and their automated
components are explored. In manufacturing operations, parts washers have been an important step in the production process for many years. In order to accept surface treatment and finishing, parts require cleaning of grease and fabrication residue. In production process operations, cleanliness of parts and components is directly related to quality and reliability of the final product. However, parts washers, just like most industrial equipment, can outlive their efficient usefulness. At this point, the equipment can be designated as either outmoded or “Legacy” in its status. A common misconception carried over from the days when solvents were the main option (prior to the early 1990s) is that solvent-free aqueous cleaning was not up to the task. Numerous parts washer manufacturers in North America demonstrate that aqueous technology is now the standard solution, and a clear alternative to solvent-based providers. In cabinet-based aqueous parts washers, solvent-free detergents undergo high heat and pressure to deliver superior cleaning efficiency. Aqueous Parts Washers also developed as a result of more regulations on the use of harsh chemicals and waste disposal, and they alleviate concerns associated with spent solvents. Furthermore, technological innovations combined with solvent-free cleaning mean more types of parts washers have evolved to provide an effective solution for a wide range of industrial applications.
Beyond Break Even: Factors That Impact Replacement Of Legacy Parts Cleaning Equipment
There are many factors that drive operation managers to consider the challenge of either replacing or updating outdated and legacy parts cleaning equipment to a more efficient and robust solution. Factors that have an impact on the cost of operation include: lower direct labor, improved reliability, improved component quality, environmental effectiveness, and safety. Deciding to make a new equipment purchase when funds are allocated, requires an analysis of the factors that justify
LEGACY pARTS WASHER EQUIpMENT:Key Factors That Affect Your Decision To Upgrade Today
By Steven Meyer
Factors To ConsiderTo achieve the results that benefit operational efficiency or affect related labor reduction, and therefore maximize return on investment in the parts washer purchase, the main factors to consider include:
• Combine wash, rinse or dry cycles into one process
• Durability for extended production life cycle
• Eliminate hazardous chemicals and petroleum-based solvents from cleaning process for improved compliance.
• Eliminate maintenance/replacement costs of outdated components
• Enhanced integration and interface to robotic loading and unloading
• Greater variety of model types now available from single manufacturer (front load, top load, pass-through, agitation dip tank, carousel)
• Greater variety of size and load capacities to deal with increasing parts variations across industrial applications (from single manufacturer)
• High efficiency pumps• Increased automation and ease
of operation with HMI/PLC• Labor reduction by replacing hand
washing or manual pressure washing• New innovations and capabilities:
closed loop wash/rinse cycle; gear-driven turntable operation;
• Sump sweep spray manifolds• Ongoing quality improvement
goals such as TQM• Reduction in production delays• Reduction in waste stream• Safety requirements• Smaller footprint• Updated production processes
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the expenditure. Executive management or the operations team strives to improve the workflow and part quality output to achieve maximum value.
• Legacy parts washer equipment can cause inefficiency due to interrupted workflow and bottlenecks.
• Legacy parts washer equipment can cause quality and reliability issues in parts and components cleanliness.
• Legacy parts washer equipment can require increased maintenance costs.
From the accounting perspective, industrial parts washer equipment has a life expectancy, and its value is documented as depreciation (in its various forms) during its usefulness in production. The average age of manufacturing assets and equipment currently in operation in the United States, according to the Bureau of Economic Analysis, is close to 20 years. Incredibly, the parts washer manufacturer has the same challenges with the equipment they use to manufacture a quality parts washer (laser cutter for steel, brake press, powder coating ovens, design engineer, and forklifts for example).
Proceed with an analysis of cost savings compared to monthly maintenance cost of the old equipment. Understand the hurdles associated with the source of dollars to be allocated to the purchase (such as cash accruals vs. loans from various stakeholders). Situations are encountered where tracking maintenance and production budgets that were determined by various teams becomes difficult to pinpoint. Factor in the direct costs of equipment purchase, including price, training, maintenance, financing, and even downtime during installation and replacement.
The various industrial applications that utilize parts cleaning equipment require maximum efficiency and increased return on investment on a company’s capital expense. In engine or transmission re-manufacturing operations, production time spent on disassembly and cleaning of parts can be more than twenty percent.
Technical Overview: Automatic Aqueous Parts Washers Provide Solvent-Free Cleaning
The task is to scrutinize equipment attributes from a myriad of offerings in the
market to arrive at two or three possible choices that address their concerns by priority. Purchasing a parts cleaning system requires research and a proactive approach toward assigning value to the various options and configurations available in today’s equipment choices. In cabinet-based aqueous parts washers, solvent-free detergents undergo high heat and pressure to deliver superior cleaning efficiency. A review of the foundations of production process parts cleaning systems, along with design and engineering attributes, will demonstrate the scale and scope of choices available in the industry. Production process cleaning systems need to integrate stages, achieve the highest specified level of cleaning, and be constructed of highest quality materials to deliver results for the long term. The following information will address the industrial cleaning solutions that are available for a wide variety of industrial applications.
General Repair or Production Process Cleaning Industrial Applications
Because of the wide range of industrial applications for aqueous parts washers, the purchasing team often requires a custom option that is unique to their cleaning requirement. An engineering consultation can assist in deciding cleaning stage configuration, throughput or batch process, cabinet type, or interface with automated loading
and unloading of parts. Cabinet parts washers in either top load or front load design allow the operator full easy access to the wash zone. One way to simplify identifying appropriate model choice is to determine whether your application is in either a general repair or production process cleaning operation. General repair parts washers typically are available in standard models with little variation while production process parts washers are highly automated and require custom design configurations to address greater cleaning challenges. It is important to note that adding components increases automation complexity, and typically requires larger cabinets to house more circuitry.
A standard general repair parts washer can be operated throughout the day, as required, or depending on demand, while high volume operations will require an industrial parts washer system that may operate around the clock. That’s because an industrial parts washer for production process cleaning may require multiple stages of wash, rinse or drying and then be loaded and off-loaded in a continuous operation.
Aqueous Parts Washers to Fit Industrial Categories
General Repair Parts Washers offer a variety of sizes and load capacities that arer fit for a wide variety of automotive and powersports applications, includ-ing: Automobile Repair Facilities, Boat
PARTS WASHER EQUIPMENT ... continued
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Dealers, Bicycle Repair, Fabrication Parts Cleaning, Machine Shops, Production Engine Shops, Production Machining Fa-cilities, Remanufacturing Facilities, Small Engine Repair, and Transmission Ma-chine Shops. For heavy-duty, large-scale cleaning, the industrial applications in-clude Truck, Transit, Rail, and Transpor-tation Production Centers. Specialized General Repair Aqueous Cabinet Parts Washers are also designed for Fastener and Screw Machine Applications.
Production Process Industrial Parts Washers are highly automated and typi-cally customized with options for ap-plications that require meeting clean specifications and challenging or intricate parts configurations, including: Avia-tion & Aircraft Parts Cleaning, Contract Machining, Fabrication Parts Clean-ing, Automotive Fleet, Metal Casting & Forming, Pattern & Machining, Precision Part Manufacturing, Production Engine Shops, Remanufacturing Facilities, Tool & Die Machining, Transit, and Transmis-sion Machine Shops.
Recent Innovations in Part Washer Operation, Functionality and Effectiveness
Recent innovations in part washer functionality include cabinet-based rotating fixture systems, pass-through or flow-through conveyor parts washers, and front load return-to-operator carousel parts washers that can accommodate robotic loading and unloading of parts and components.
The goal of a clean specification requirement is to achieve the determined quality level and eliminate any contamination. By their very nature, complex parts and intricate components contain blind spots and hard-to-reach areas that may need special fixtures and a custom array of nozzles aligned to challenge areas to thoroughly remove contaminants. The Automatic Top-Load Rotary-Fixture Parts Washers operate like a rotisserie. As the part rotates from its balanced centerline, the spray manifold thoroughly flushes fine particulates from blind holes and other hard to clean cavities. Because every surface of the part is targeted with heated
and pressurized water and solvent-free detergent, there’s no chance of the part remaining contaminated. During the dry cycle, rotation action dumps water from blind holes and hard to reach areas.
Cabinet Parts Washers or Pass-Through Conveyor Parts Washers: Advantages and Limitations for Batch Cleaning Processes
When considering an industrial parts washer for your application or production cell, it is important to compare functions that impact workflow. Cabinet parts washers are excellent choices for batch cleaning large size parts and components, whereas passthrough parts washers are well-suited to parts of uniform size, and production cells with continuous product flow.
Cabinet parts washers are loaded with parts, the door is closed, the wash cycle is initiated, and when completed, the parts are removed. For clean room situations, the closed-process nature of cabinet parts washers is well suited for environmental control. The turntable in front load cabinet parts washers can be designed with special fixtures and parts trees to accommodate multiple parts with odd shapes and sizes.
Cabinet parts washers tend to be of standard design, and therefore are less expensive to manufacture than pass-through conveyor parts washers. However, pass-through conveyor parts washers typically accommodate automated loading and unloading for lower labor costs, while cabinet parts washers require manual loading and unloading.
Education Is The Key To Selecting The Right Industrial Parts Washer
A best practice for ensuring a reliable and quality-driven manufacturer is to research the breadth of their product models, to include experience in the industry, number of machines in the field, and recent installations that demonstrate experience cleaning a variety of challenging parts and components. It is important that the parts washer manufacturer offer engineering consultation and a broad spectrum of value-added configurations that consider
PARTS WASHER EQUIPMENT ... continued
Parts washers configuration spectrum of increased innovative functionality and effectiveness.
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PARTS WASHER EQUIPMENT ... continued
the operating costs of the entire cleaning production cycle, including advanced automation, product handling, worker safety, and environmental impact in order to be the appropriate solution for industrial applications. Researching parts washer manufacturer information evolves to issuing request for quotes (RFQs), then to settling on final manufacturers. In addition to key requirements, additional questions that will complete the task of making the most informed decision include:
• Does the manufacturer provide technical support, service and supplies?
• Does the manufacturer also have experience in making their own detergents and additives?
• Can the manufacturer address issues such as excessive foaming or rust prevention?
• Can the manufacturer provide documentation in the form of printable Product Data Specifica-tions?
• Can the manufacturer provide documentation in the form of Wastewater Approval Letters by
State?• Does the manufacturer provide
turnkey installation and setup services that address labor for installation, general contracting of plumbers and electricians, facility modifications, and conveyors or robotics?
• Does the manufacturer provide product demonstration videos?
Increased quality begins with clean specification analysis and improvement of work processes. For clean specification requirements and special challenges, confirm that there is willingness and engineering ability to address your special need. It is recommended to provide sample parts for testing and evaluation. It is now clear that one size no longer fits every industrial application. A wide variety of parts washer models has evolved to address the full spectrum of parts cleaning applications and functionality. However, not all industrial parts washers are constructed the same.
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Steven Meyer is Marketing Manager for Renegade Parts Washers and Detergents.
The Renegade Product Lines of Parts Washer Equipment and Parts Washer Detergents is manufactured and sold by Service Line, Inc. in Reedsburg, Wisconsin. Founded in 1996, our extensive product lineup includes the standard Renegade automatic top load and front load parts washing systems, manual parts washers, and the Renegade Industrial Series of automatic top load and front load aqueous part washing systems with value-added customized configurations to meet or exceed clean specification.
Renegade Parts Washers Detergent and Additives are the solvent-free, high performance cleaning solution with additional health benefits.
The Renegade Team that engineers and manufactures each parts washer system is dedicated to quality, service and long-lasting value.
Made with pride in the USA.Renegade Parts Washers:
Let us put the DRIVEin your STARTER!
Call us now for price and availabilityUSAWAI Corporate Florida3300 Corporate WayMiramar, FL 33025 www.waiglobal.com
1.800.877.3340
WAI now stocks 250 ZEN part numbersin our five North American warehouses.
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Founded in 1996, APPI Energy has assisted numerous organizations by providing data-driven energy
procurement solutions. As an independent energy consulting firm, APPI Energy strives to help its customers reduce and manage electricity and natural gas expenses through the procurement of competitive energy supply contracts. Every day, APPI Energy monitors energy markets, and utilizes a proprietary database to benchmark supply contracts, enabling us to provide customers the best available solutions.
As energy consultants, APPI Energy’s mission is to offer our clients a comprehensive way to reduce energy expenses and create budget certainty. Primarily, we accomplish this by negotiating competitive energy supply contracts and presenting businesses with an array of firm supplier offers at varying term lengths. We get these prices from suppliers we’ve vetted to ensure customer reliability and satisfaction. Our methods give our clients access to a solid green-apples-to-green-apples price comparison.
In addition to competitive energy procurement, APPI Energy also provides efficiencies consulting, such as demand response, energy reporting systems, and facility audits. APPI Energy has also worked with customers for renewable energy sources, such as solar, wind, and hydro systems, or biomass facilities.
APPI Energy’s work over the past 23 years has earned us the endorsement of Automotive Parts Remanufacturers Association and 157 other affinity groups, trade associations, and chambers of commerce. Additionally, in 2017, APPI Energy won The Energy Professionals Association (TEPA)’s Agent, Broker, and Consultant of the Year award. This award recognizes one company on its promise and innovation in fields such as contract negotiation, ethical business practices, and customer service.
However, while the energy procurement process is our primary method to provide our customers with the best available electricity and natural gas prices, it does
not represent the entirety of our consulting services. APPI Energy partners with select, vetted strategic allies to offer clients access to programs through the APPI Energy Intelligence Suite, such as demand response, renewable energy projects, utility management, and facility audits.
Demand response programs allow APPI Energy clients to receive compensation for agreeing to reduce their energy usage during times of peak energy demand (such as on the hottest and coldest days of the year). By participating in demand response, companies benefit from both the compensation they receive from the program and the favorable capacity tags they’ll receive for reducing usage during peak hours. In turn, the grid as a whole benefits, as operators procure less power to keep the grid functional during periods of peak usage, thus reducing the cost of wholesale electricity, and creating the reliability of continual service.
Renewable energy procurement is also a service APPI Energy is proud to provide. Through our strategic alliances, APPI Energy provides companies with access to solar panel installation, and procurement from wind farms, hydro systems, and biomass facilities. In deregulated states, the percentage of green energy can range from 10-100% of a company’s usage. We can also assist businesses in regulated territories with the purchase of Renewable Energy Credits (RECs) and carbon offsets. RECs are awarded to certify that one megawatt of power supplied to the grid was generated by renewable energy. To achieve 100% green status, a facility must purchase enough RECs to equal the amount of electrons it takes from the grid. Carbon offsets represent a metric ton of carbon dioxide that is prevented from entering the air as a result of renewable procurement.
We also offer comprehensive utility management systems for our clients to have access to real-time data. Through our web-based portal system, clients can tract energy usage in real-time, set benchmarks for their various facilities, observe interval data reports, set alerts for anomalies, and even track greenhouse gas emissions with
reporting methodology established around the EPA’s Energy Star.
This data is vital for businesses that have a number of facilities and are heavy power users. With tools such as interval data reporting and auditing, a business can readily tell if a malfunctioning piece of equipment is creating demand spikes, which could prove costly if left unchecked. In addition, analytics allow a business to determine the exact impact of energy efficiency initiatives. EIS normalizes daily energy use for accurate year-over-year comparisons, and highlights variance due to weather. This allows for accurate isolation of operational variances.
APPI Energy also provides facility audits, walk-through assessments where we can identify ways to modernize old systems and equipment, and improve the environmental impact of the facility. Our facility energy optimizations would include things such as HVAC upgrades, lighting retrofits, advanced metering technology, weatherization of facilities, and peak load scheduling. By having a qualified energy expert survey and analyze facilities, our customers will receive personalized recommendations that are designed to help them do more while consuming less power.
For more information about the services available through the APPI Energy Solutions Division, please contact us either online or via our phone number, 800-520-6685.
ENERGY pROCUREMENT AND BEYOND:What AppI Energy Can Do For You
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I recently had the pleasure of providing an educational seminar at the National Tank Truck Carriers annual meeting in
Las Vegas. The focus of the presentation was privately-held/family-business succes-sion.
Although the topic on the surface may appear to be rather mundane, improper succession planning can literally cause the loss of a company and place family members in situations where they never speak to one another again. It’s that serious.
Statistically, only 1/3 of all family businesses will survive from the first to second generation, and less than 15% will survive from the second to third generation. I’m not referring only to companies that are struggling to stay afloat. This sobering statistic includes many, many businesses that at one time were hugely successful. Think it can’t happen to you? None of the individuals involved with those businesses expected it to happen to them either. Ask any family members of those business owners if it could happen. Improper business succession planning is the leading cause of ultimate business failure.
My client base of proven business owners and entrepreneurs stretches across the United States, and although they are involved in different industries, they share many similar attributes including understanding the importance of business succession planning. More critical than understanding the importance is that they actually took action and implemented a business succession plan that protects
the company owners, their families, the employees and business.
Inadvertently Disinheriting Your Children from Business Ownership
Yes, it happens —more often than business owners realize. Worse yet, is that this trap snares many business owners that have actually implemented succession planning! There are many way a business owner can unintentionally disinherit his or her own child. Think it can’t happen to
you? Think again.A common example is a
business that has two or more owners that happen to have their children actively working in the business with the intent of continuing the business well into the future. The problem arises when a succession plan doesn’t get updated.
Many years ago, siblings, Larry, Harry and Mary started a business as equal owners. The single location grew to five, and the business
was thriving. The siblings had the good foresight of establishing a funded buy-sell agreement that would make certain if one of the owners departed the business for any reason that there would be mechanisms in place for the owner’s business interest to be bought, and the remaining owners would own the company 50/50. There were many components of the plan. However, the overriding objective was for the company to buy back the stock of an owner that departed the company for any reason. Sounds fairly straightforward, right? It was straightforward when the plan was implemented. However, as time went by Larry, Harry and Mary each had a son come into the business with the intention that their own sons would acquire their own parent’s shares, a very common intention for many business owners. So what’s the problem? Harry unexpectedly passed away, and Harry’s dream of having his son owning his shares passed away as well. Remember, each owner’s business interest was structured to be bought by the
company at their passing. In this particular situation, Harry’s shares at his passing were purchased by the company. Harry’s son’s business ownership future—over and done.
Unintended Owners—Forced Sale of the Company
Bill and Will, two lifelong friends started a business. Bill’s strengths were on the entrepreneurial side, and Will brought blue collar talents to the team. They determined that company ownership would be held 55% by Bill and 45% by Will.
Although Bill and Will remained the closest of friends and business associates, neither was particularly close with the other’s wife as neither wife was actively involved in the business. Furthermore, in the 25 years that Bill and Will owned the company, there weren’t more than a few times per year that the spouses stopped by the business. One day that all changed. Bill was in a fatal accident, and because there wasn’t properly structured succession planning, Bill’s wife was now the owner of his 55% interest.
Bill’s wife and Will, now co-owners, talked, and Will assured her that he would be able to keep the company profitable as it always had been. Even though Bill’s wife wanted to believe in Will, she was not comfortable putting her financial future in the hands of someone she couldn’t know for certain could keep the business successful without Bill’s input. Bill’s wife decided to immediately sell ... during a down economy and for a sales price much less than what the company would have garnered during a more normal economic time.
These scenarios and more will be presented by Lee and Terry Resnick, at the January 2020 conference in Dallas. The Resnick twin brothers are partners in nationally recognized Resnick Associates, a business succession, estate planning and life insurance advisory and implementation planning firm, with offices in Kansas City and Harrisburg, PA.
Lee may be reached at (913) 681-5454 or [email protected]
SUCCESSION pLANNING INSIGHTS:Tales From The Trenches
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KEY TOPICSInnovative Takeback: Learn how innovative processes, workforce development and technology are being used to improve performance and take take-back programs to the next level.
Industry 4.0 for Reman: Learn how these companies are making smart remanufacturing work with augmented reality, autonomous robots, big data and analytical tools, cloud computing, cyber-physical systems, the Industrial Internet-of-Things and integrated IT systems.
Workforce Strategies: Hear panelists describe the successes of their registered apprenticeship programs, their partnerships with community colleges, and successful outcomes for both employers and apprentices.
Circular Economy: From Aspiration to Implementation 62% of American companies now plan to move toward circularity. Another 16% already use circular economy principles. Hear from experts on what that means.
Advanced Technology Applications for Reman: With technologies constantly evolving, learn how these companies are continuously striving to supply more advanced and efficient products through new technology applications.
Innovative Business Models Employing Reman Products: Within the not too distant future the demand for reman products could double. This session features different perspectives, quick case studies, and Q&A on how these new business models are creating forces that will drive a new and exciting chapter for the remanufacturing industry.
Grow Your Business Through Innovative Partnerships: Panelists will share the innovation challenges each of them experienced, and how they joined forces with peer companies, universities, or Manufacturing USA Institutes to rapidly solve problems and train employees at a fraction of the cost.
REGISTER NOW! SAVE $50 BY USING THE LINK BELOWwww.worldremanconference.com/2019-registration/?referral=APRA&discount=APRA19
ApRA TEAMS Up WITH RIC:World Reman Conference • October 9–10 • Rochester, NY
The annual RIC-RIT World Remanufacturing Conference is the only reman event bringing together leaders from all sectors of the re-man industry for an intensive, highly collab-orative exploration of best practices, emerg-ing trends, and issues of critical importance to our industry.
The conference, hosted jointly by the Remanufacturing Industries Council and Rochester Institute of Technology, provides an unparalleled platform for remanufacturing professionals to network and learn the latest information in the practical application of advanced remanufacturing strategies and methodologies.
18 • AUGUST 2019 • REMAN CONNECTION • www.apra.org
TECH
NIC
AL T
RAIN
ING
•Author: Travis Kraus
•Subject Matter: 4T65E
•Issue: Erratic speedometer
Spiking Speedometer
R&R Tech
vecte
ezy.c
om
©2019 Transmission Digest. Reproduced with permission. For subscription information call 800-274-7890
A customer showed up at our shop with a 2008 Chevrolet Im-
pala SS that was equipped with the 5.3 LS engine and a 4T65E transmis-
sion. The customer had a complaint of an erratic speedometer while driving. I began by collecting all the vehicle information for a check out
sheet, such as VIN, mileage, engine and transmission type. After filling out the vehicle information section I set about to begin my diagnosis.
1
www.apra.org • REMAN CONNECTION • AUGUST 2019 • 19
©2019 Transmission Digest. Reproduced with permission. For subscription information call 800-274-7890
First I checked codes and found the vehicle had no transmission or engine codes, but it did have a RF wheel speed sensor code, which did not seem likely to cause the prob-lem, but I kept this in mind anyway. I was suspecting a possible output speed sensor issue or maybe even an instrument cluster issue.
I set up my scanner to monitor certain transmission PIDs such as TCC duty cycle, TCC slip, gear com-mand, RPM and the output speed sensor (among others), and set out for my road test. At first the vehicle did not act up and I was starting to wonder if it even had a problem. After a couple of miles, sure enough the speedometer jumped back and forth a few times, spiking as high as 60-70 mph just shortly after begin-ning to move; no way could this be
correct. Every time this hap-pened was when I took off from a stop, and this was a pretty good clue for me.
This told me I likely had a short somewhere, and when the engine torqued it would cause the short and the malfunction. With this in-formation in mind I returned to the shop and attempted to duplicate the issue by power-braking the vehicle quickly while in gear. Sure enough, I was successful in replicating the issue in the shop. You can see on the attached screen shot of the scanner when the problem occurred (Figure 1).
The vehicle speed PID goes from zero to 23 MPH instantly, and the output speed sensor goes from 0 to
1010 RPM at the same time. I want-ed to rule out possible interference from the alternator so I ran an elec-trical system check and ripple test which is standard operating proce-dure here, and no problems were found with the charging system. Af-ter this I decided to raise the vehicle and start looking for other possible causes. In the past I have seen inter-nal transmission failures that drop large amounts of metal debris. This debris will stick to an output speed sensor and cause erratic readings of the output speed sensor.
I unbolted the speed sensor and pulled it out of the case and it was
2 3
20 • AUGUST 2019 • REMAN CONNECTION • www.apra.org
©2019 Transmission Digest. Reproduced with permission. For subscription information call 800-274-7890
clean with no signs of concern, so I reinstalled it and started looking elsewhere. I always like to do a very good visual inspection before I break out the DVOM and do electri-cal checks. Many times I have found a concern with just the solid visual inspection. I started to follow the wire harness from the sensor back to the PCM. I noticed the plastic conduit surrounding the harness near a metal bracket on the trans-mission that secured the harness in place had deteriorated and fallen off (Figure 2).
I knew I was onto something with that discovery, and upon closer inspection I discovered a couple of wires had been chafed through the insulation and bare wires were ex-posed and grounding on the metal bracket (Figure 3).
Next I set off to identify these wires hoping to find they were a part of the output speed sensor circuit. I pulled up a wiring dia-gram for the output speed sensor on this car and identified the circuits as being a purple wire and a yellow
wire as a twisted pair. With this information I went back to the car and, as you can see in the picture, I had a chafed purple wire in a twist-ed pair with a yellow wire. This was certainly my problem. With my diagnosis complete I turned in this information to the service advisor to sell the work. The customer was happy to hear it was likely a simple problem and gave us the authoriza-tion to repair the wires and recheck.
At the initial inspection we did a pan inspection and the pan was clean and just had some old-look-ing fluid inside. We serviced the transmission and set off to repair the wire. We repaired the chafed wire and wrapped it back up with electrical tape and put some new conduit around it to protect it and prevent this from happening again, then secured it back in the bracket. With the service and repair complete and everything buttoned up, I set back off on a post-repair test drive to see if the problem was fixed. Everything worked as designed and the speedometer
never exhibited a glitch again. I was happy with this so we notified the customer that his car was ready to pick up. The customer was eager to get his car back and get on the road with it.
We waited a couple of days and gave the customer a follow-up call to see how things were going with the Impala. The customer was very happy and reported the car was working great and has not acted up since. The moral of this story is to never under estimate a good visual inspection. I have found many prob-lems without the need to go into in-depth testing simply by looking around and paying attention to the small details such as plastic conduit that has fallen off a wire loom.
Travis has been in the transmission business since 2003. He is from Topeka, Kan. and got his start at his dad’s shop sweeping floors. He came to Certified Transmission after 10 years as a trans-mission tech at a Ford dealer, and he has the A2 and A3 ASE Certifications and is working on more.
www.apra.org • REMAN CONNECTION • AUGUST 2019 • 21
Nastra Automotive Industries has always followed a strict quality process to ensure its
remanufactured automotive components are as good as new—or, in some cases—even better.
Growing from a 50-square-foot back room of an auto parts store, Nastra now operates out of a 100,000 square-foot facility. Celebrating more than 40 years in business, Vice President of Operations, Tim Nolan, says, “We must be doing something right.”
“We preach quality and safety first,” Nolan states. “We have a vested interest in making sure the product in the box is going to meet or exceed original equipment specs.”
The company specializes in remanufacturing alternators, starters and disc brake calipers for a variety of vehicles, including automotive, industrial, heavy duty, powersport, marine and antique types. Since Nastra’s inception in 1978, the company has grown its repertoire to offer original equipment manufacturer (OEM) brand replacement of many industry leaders’ products including Ford, Motorola, Mitsubishi, Chrysler, Bosch and Delco-Remy to name a few.
NASTRA “MANUFACTURED AGAIN”
All Nastra remanufactured products adhere to strict guide lines as they are manufactured again. For example, all units are disassembled down to the casings and thoroughly cleaned. All brushes and bushings are replaced with new, heavy-duty components. Only high-temperature lubricants are used to ensure parts will wear well under high heat conditions. Also only original equipment cores are used in the rebuilding process.
All starter and alternator sub-assemblies are thoroughly checked and tested before final assembly. Once reassembled they are computer load-tested to measure more than 100 different parameters before they are packaged for shipment. “We test with the same equipment that the OEMs test with,” says Robert Abbatiello, vice president of sales and marketing. “We’re constantly looking at new equipment and procedures, and implementing those as we see fit.”
The company uses the “bathtub curve” as a benchmark when analyzing component and product longevity in the field. Abbatiello says the company can be more reactive to unit failures than its competitors can. “With reclaimed
component parts, we can analyze when units start to fail and react better to those results, by speaking with the installer directly,” he says. As a consequence, the company claims original equipment design flaws have been “re-engineered” by Nastra, making the product “better than new,” yet still preserving an OEM fit. Brake calipers follow a similarly rigorous rebuild process. In addition to thorough cleaning, new critical part replacement (including all new phenolic pistons) and exhaustive testing, Nastra calipers incorporate premium, semi-metallic OE-grade friction into their loaded calipers sets. Nolan adds, “I have always preached to our employees,
NEW AND IMpROVED:NASTRA Brings New Life To Vehicle Components
By Barbara McHatton
Nastra’s headquarters in Lindenhurst, New York
“We have a vested interest in making sure the product in the box is going to meet or exceed original equipment specs.”
Tim NolanVP of Operations
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‘Iimagine this part is going on the car your wife drives your kids to soccer practice with, if you don’t want the item going on her car, don’t rebuild it.’”
CUSTOMERS FIRST
The company claims that their customers drive its forward progress. “Our relationships with customers mean everything to us,” Abbatiello says. “We will stop at nothing to please our customers.”
He also maintains that its size makes the organization more agile to react to customer needs, because it is not a conglomerate. Nastra’s customers appreciate that “we don’t have to run up too much of a flag pole if there’s an alleged claim or functionality problem.”
For instance, Nastra’s team is constantly doing field work with customers to see what challenges they face and how Nastra can help. “Because of the nature of OEMs, products can be commonly misdiagnosed,” says Abbatiello. For example, an alternator or starter may be blamed for a starting/charging complaint, when 45 percent of these complaints are related to be the fault of an old battery.
“Just by walking in and talking to a customer about a solution—did he check this or that?—may jog something in his head and solve the problem,” Abbatiello asserts. He adds that Nastra employees visit more than 500 installers per year. He believes the mechanics who install Nastra’s products appreciate seeing a factory person at their site so the mechanics can ask questions or offer input.
“Additionally, we are constantly researching products to add to our catalog, as well as raw materials, to make sure they are available when our engineers need them,” Abbatiello adds.
Being a U.S.-based company is also a big benefit to its customers. “A lot of manufacturers are going south of the border,” Nolan says. “In addition to import tariffs raising costs, those companies have the added logistical difficulties of getting their merchandise to market,” he asserts. Because Nastra is based in New York, he says, it is at a prime shipping hub for many manufacturers and can get product to its customers more quickly.
To expedite its delivery process, Nastra’s computer system allows the company to provide up-to-the-minute,
real-time inventory feeds to companies, Abbatiello says. The internet also provides the company with a business avenue for web retailer customers. The company has a very diverse customer base.
Abbatiello claims much of the company’s success lies in its workforce. “We take a lot of pride in our company,” he says. “We recognize our employees as the driving force behind the decisions the management team makes.”
Both Abbatiello and Nolan say Nastra’s employees are like family. “Without the people producing, we can’t run this business,” Abbatiello says. The company’s Vice President of Finance, Theresa Bartolotta, has been with the company
for 35 years. “She’s like an older sister to me, and a mother hen to rest of the employees—an absolutely ideal employee, leading by example.”
“Nastra has a tremendous workforce,” Abbatiello says. “I am humbled by our employees who give it their all on a daily basis.”
This article was originally published in Manufacturing Today magazine which has graciously granted reprint rights to the APRA.
www.manufacturing-today.com
A Nastra employee assembles brake calipers.
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NASTRA ... continued
www.apra.org • REMAN CONNECTION • AUGUST 2019 • 23
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