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This paper contributes to the body of a product exchange (at the end of lease
literature on cores' collection. Lind et al. period, or after purchase of new product
[2011] stated that it is one of the main when the dealership collects the returned
challenges in the remanufacturing to achieve cores from the end consumer and sends
a steady flow of cores. them back).
core broker relationship,
There are several ways of organization of remanufacturing contracts when
core collections. The most common sources of remanufacturer doesn't owned the core but
cores are: just provide service,
52
Golinska-Dawson P., Nowak A., 2015, The survey on cores supplies in the sme in automotive remanufacturing
sector. LogForum 11 (1), 51-61. DOI:10.17270/J.LOG.2015.1.5
URL: http://www.logforum.net/vol11/issue1/no5
deposit systems, when customer at purchase part 3 issues concerning the characteristics
time is placing a deposit, which is given of the remanufacturing process: standard lot
back when the used produced is returned, size, the average duration of the
rejected parts from the production plants, remanufacturing cycle and workload of
scrap yards and dismantling stations. various stages of remanufacturing process,
the level of recovery of remanufacturing,
According to the findings of the literature difficulties of cleaning products with
review, companies usually need to apply dangerous substances, problems with
multiple sourcing strategy in order to achieve missing spare parts, inventory management
steady flow of cores. The literature review issues.
helped us to identify also a number of part 4 barriers to development of
problems which are connected with cores' remanufacturing.
supplies. The survey on the cores' supplies is
discussed in the next section. This paper discussed mainly results from
part 1 and part 2. The analysis of cores'
supplies are performed in order to provide
THE SURVEY DESIGN more in depth insight into the problems
identified in literature by e.g. Ostlin and
A questionnaire was used to carry out the Ekholm [2007], Hammond et al. [1998] or
survey, because it is the most popular tool for Rubio and Corominas [2008]. The main
collection of an empirical data. To create an problems of remanufacturing in the areas
on-line survey form was used Google Docs related to cores supplies, are as followed:
application located on Google. Ability to insufficient availability of the good quality
integrate and transmit data directly into cores,
a spreadsheet greatly facilitates the analysis of high product variability,
collected responses. The advantage of this variation of the rate of materials recovered
online tool is that results can be presented as and materials matching problems.
statistical charts, cumulative summary of
responses, with the possibility of sharing the The company for the pilot study were
results obtained so far from all respondents. selected based on Internet search with key
word: remanufacturing, automotive parts,
The questionnaire consisted of 20 questions regeneration. Among companies specializing
(open, closed, semi-open). The semi-open and in remanufacturing of automotive parts,
open questions were structured depending on randomly was selected group of 70 companies.
the topic as e a single choice, multiple choice Finally 40 of them replied in the framework of
and Likert's scale questions. Survey is intended the questionnaire. The original method of
to verify the theoretical findings with the facts research was supposed to be the electronic
observed in the companies. Respondents survey, which was sent on given by the
belong to the group of companies specializing respondent (during a brief phone call) email
in the remanufacturing of automotive parts. inbox. Because the respond rate was not
Findings are presented in the form of satisfactory (approx. 4,5 %), the companies
aggregated statistical charts. The respondents were contacted again. In the second round the
gave the answers anonymously. The most of the surveys were conducted as
questionnaire consisted of 4 main domains: telephone survey (92.5% of the sample) based
part 1 characteristics of respondents: on the same electronic form which was
including the location, the time company previously received by the companies. The
exists on the market, the size of the research team was entering the answers on
company and major groups of products. behalf of the respondents to on-line form
part 2 cores supplies organization: during phone conversation. The results of the
including sources of supply of cores and the study are resented in the next section.
relationship between remanufacturer and
suppliers, quality of supplies, problems in
organization of supplies.
53
Golinska-Dawson P., Nowak A., 2015, The survey on cores supplies in the sme in automotive remanufacturing
sector. LogForum 11 (1), 51-61. DOI:10.17270/J.LOG.2015.1.5
URL: http://www.logforum.net/vol11/issue1/no5
20%
18%
16%
14%
12%
10% 20%
8% 15% 15%
6% 12,5%
4% 7,5% 7,5%
5% 5% 5%
2% 2,5% 2,5% 2,5%
0%
Respondents are mainly companies with in one type of products' group, or those whose
over 10 years of experience (28 companies) in activity is enhanced by additional products.
remanufacturing of automotive parts. The size The most typical lot size (87.5% of the sample)
of companies was as follows: 89% are micro- is single product's group. The main reasons
enterprises employing up to 9 persons, rest of which the companies gave in order to explain
the companies were declaring that their a strong focus on single products' group were,
employment is below 49 people. as followed:
different types of products from different
The analyzed companies specialized in car models whose dismantling instructions
remanufacturing of turbochargers (16 are different,
companies), steering gear (9 companies) and each core having different worn
cylinder heads (7 companies). Among these components,
can be distinguished companies that specialize
54
Golinska-Dawson P., Nowak A., 2015, The survey on cores supplies in the sme in automotive remanufacturing
sector. LogForum 11 (1), 51-61. DOI:10.17270/J.LOG.2015.1.5
URL: http://www.logforum.net/vol11/issue1/no5
Other
Remanufacturing contract
Customer ownership
Deposit
Voluntary return
Scrap heads
Brokers
The respondents gave answers to various The companies were also asked about the
questions relating to the way in which they frequency of orders, standard delivery time, as
acquire cores for the remanufacturing, the well as problems with the quality of the
countries from which they came from, and the supplied cores.
barriers they encounter when obtaining cores.
55
Golinska-Dawson P., Nowak A., 2015, The survey on cores supplies in the sme in automotive remanufacturing
sector. LogForum 11 (1), 51-61. DOI:10.17270/J.LOG.2015.1.5
URL: http://www.logforum.net/vol11/issue1/no5
Figure 3 presents the sources of cores' cooperate with so-called. brokers cores (8
deliveries. This question was a multiple choice replies) or they buy products, e.g. through the
from the available suggestions, which were website. Most of the companies apply mixed
identified, based on the literature review and approach to the cores purchase and they use
were defined as followed: more than one source of supplies.
purchase from core broker (B),
purchase from scrap yard or dismantling Most of the respondents obtained cores
station, exclusively from Poland (30 companies).
voluntary free of charge return by user, Several companies (22.5% of the sample)
deposit agreement, apply mix sourcing and they obtain cores from
remanufacturing service for individual Polish and from an import. Only one company
customer (customer ownership (C)), declares that the cores come exclusively from
remanufacturing contract for services for the import. Respondents indicated the
another company (client provides cores countries from which most imported cores are
(RS)), coming from, which are: Germany and the
other. United Kingdom (each gets 6 replies), and
France (4 replies). In case of countries from
outside the European Union dominates
Most companies remanufacture products
Ukraine (3 replies).
which are owned by customers (35 replies) or
they remanufacture for companies with whom
they have agreements for services (29 replies). The next question focused on the problems
Those who take the challenge to acquire cores with obtaining cores from Poland. The results
from intermediaries usually decided to are presented in Figure 4.
N/A
No problems
Dishonesty of sellers
Barriers encountered when acquiring cores customers and other companies, so they don't
to remanufacturing from the territory of Poland need to buy cores.
are not big (Fig. 4). Mainly it's too low quality
of obtained cores. A small group of companies Analogical question was stated in order to
complain about dishonesty of sellers (4 identify problems which might appear by
respondents). Most companies believe that the import of cores but due to the fact that very
difficulties in getting the cores from the few respondents are importing the cores the
territory of Poland do not exist. The opinions results are not analyzed in this paper.
of the respondents are mainly influenced by
the fact that most of them provide mainly The other aspect which was analyzed was
remanufacturing services for individual frequency of cores supplies. Figure 5 presents
56
Golinska-Dawson P., Nowak A., 2015, The survey on cores supplies in the sme in automotive remanufacturing
sector. LogForum 11 (1), 51-61. DOI:10.17270/J.LOG.2015.1.5
URL: http://www.logforum.net/vol11/issue1/no5
the results. The frequency of placing orders for delivery date for cores, and so it is impossible
cores was very difficult to define. Most of the to specify the length of the delivery lead time.
companies (65% respondents) have stated that The next group of companies (25% of the
they don't monitor order placing frequency sample) admits that customers provide the
because it is unpredictable and it depends cores to every day, therefore it can be
solemnly on customer demand, which varies concluded that by them the order takes place
seasonally. Hence the conclusion is that the with such frequency.
lack of order, results in the lack of a specific
Daily
25%
every 2-4 days
2,5%
Weekly
5%
65% Monthly
2,5%
According to customers
orders
Source: own elaboration
no problems
delivery incomplete
rusted parts
57
Golinska-Dawson P., Nowak A., 2015, The survey on cores supplies in the sme in automotive remanufacturing
sector. LogForum 11 (1), 51-61. DOI:10.17270/J.LOG.2015.1.5
URL: http://www.logforum.net/vol11/issue1/no5
Companies have confirmed that frequently The last factor that strongly affects
appearing problem is corrosion of parts and the remanufacturing process is the lack of spare
incomplete deliveries. A significant proportion parts used for re-assembly stage. The problem
of respondents declared that there is "no is related to the time of launching the product
problems". In addition to rusted parts, it is the on the market. Among the available models of
most common answer among respondents. cores are both old and new models. They have
This finding might result in the fact that when a limited number of spare parts, as partially or
providing remanufacturing services and completely withdrawn them from the market
dealing with one piece lot size companies are already (old products) or have not yet been
used to remanufacture any core disregarding its introduced to the market (new products).
quality.
58
Golinska-Dawson P., Nowak A., 2015, The survey on cores supplies in the sme in automotive remanufacturing
sector. LogForum 11 (1), 51-61. DOI:10.17270/J.LOG.2015.1.5
URL: http://www.logforum.net/vol11/issue1/no5
Authors in the survey try to receive in depth Engineering and Management, 4(3), 453-
inside in cores' supply organization regarding 466.
the problems described in the literature, such
Guide Jr. V. D. R. 2000, "Production planning
as:
and control for remanufacturing", Journal
insufficient availability of the good quality of Operations Management, 18, 467-483.
cores,
high product variability, Guide Jr, V.D.R., Teunter, R.H., Van
variation of the rate of materials recovered Wassenhove, L.N., 2003. Matching demand
because of materials matching problems. and supply to maximize profits from
remanufacturing. Manufacturing & Service
Most of the respondents remanufacture one Operations Management, 5(4), 303-316.
piece lot sizes. The variety of products is very Hammond R., Amezquita T., Bras B., 1998.
high. About 50% of companies confirm that "Issues in the automotive parts
material matching restrictions are an important remanufacturing industry: a discussion of
problem (assessment 3-5 in Figure 7). results from surveys performed among
Regarding quality problems companies mainly remanufacturers." Engineering Design and
have to deal with rusted parts and incomplete Automation 4/1998: 27-46.
deliveries. Significant group of companies
declare that quality of cores problem is not Jayaraman V., 2006. Production planning for
relevant to their case. During phone survey closed-loop supply chains with product
they explain that such statement is based on the recovery and reuse: an analytical approach.
fact that they don't owned the cores. The International Journal of Production
further research step will include the extension Research, 44(5), 981-998.
of the respondents group and continuation of Lind, S., Olsson, D., Sundin, E., 2011.
the pilot study with focus on medium size Exploring inter-organizational relationships
companies. within the remanufacturing of automotive
components. In Proceedings of 1st
International Conference on Remanu-
ACKNOWLEDGMENTS facturing: July 26-29, Glasgow, UK.
Liang Y., Pokharel S., Lim G.H., 2009. Pricing
The authors would like to thank the used products for remanufacturing.
Narodowe Centrum Badan i Rozwoju NCBiR European Journal of Operational Research,
(National Centre for Research and 193(2), 390-395.
Development) for financing the research. This
paper refers to the research financed by the Martin P., Guide Jr, V.D.R., Craighead, C.W.,
NCBiR in the framework of the German- 2010. Supply chain sourcing in
Polish cooperation for sustainable remanufacturing operations: an empirical
development, project "Sustainability in investigation of remake versus buy.
remanufacturing operations (SIRO)", grant no Decision Sciences, 41(2), 301-324.
WPN/2/2012. stlin J, Sundin E, Bjrkman M., 2009.
Product Life-cycle Implications for
Remanufacturing Strategies, Journal of
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Golinska-Dawson P., Nowak A., 2015, The survey on cores supplies in the sme in automotive remanufacturing
sector. LogForum 11 (1), 51-61. DOI:10.17270/J.LOG.2015.1.5
URL: http://www.logforum.net/vol11/issue1/no5
Paulina Golinska
Faculty of Engineering Management
Poznan University of Technology
Strzelecka 11 St, 60-966 Poznan, Poland
e-mail: paulina.golinska@put.poznan.pl
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