Acquisition & Disposition
Diligence, or acquisition and disposition, of individual pieces of rotary equipment and whole plants alike, involves exhaustively investigating if you’re making a smart purchase. Optimus Solutions can assist you in every step of acquiring new or used equipment.
Is this equipment a good fit for our process?
- Is the equipment “fit for purpose,” or going to require extensive re-work?
- Is the size of the equipment appropriate?
- Is the energy requirement appropriate to our process?
How do we manage expectations of production with reality?
Will you make your return on investment (ROI) with this purchase?
Once you know how well the equipment will fit into your process and have reasonable expectations for it, which you can only come to through due diligence, it’s time to ask yourself if the money you put into the purchase, transfer, and startup of your equipment will come back to you through a greater profit. What is the true cost of running the equipment? Are you losing money, breaking even or profiting from the buy?
Here’s What We Do to Help You Achieve Success
- Define the needs/success through building both theoretical and practical models using real data.
- Ask appropriate questions to keep the focus on the success of the project even if the questions are uncomfortable to answer.
- Determine metrics to gauge success:
- Frequent updates with clear project progress
- Data driven decisions ONLY:
- No “group think”
- No emotional attachment to direction.
Dos and Don’ts
- Don’t: only look at the purchase price. You could get for free and it be a bad deal.
- Do: Look at the logistic and installation costs
- Do: Ask for actual production performance logs
- Do: Determine the theoretical production ranges and build production model with Best Case/Most Likely/Worst Case. Do the same for combustion and airflow.
- Do: Theoretical Heat/Mass Balance: Valid?
- Don’t: Purchase without a detailed inspection of the production equipment by a qualified inspector. Remember the details matter.
- Do: Map out the process and model the component reliability to get an overall picture of the system reliability and predicted downtime.
- Do: Evaluate your Risk – FMEA (Failure Mode Effect Analysis)
- Do: Detailed ROI with measurable milestones
- Don’t: Be afraid to spend some time and money upfront in the evaluation
- Don’t: Chase “Sunk-Costs”. If a bad decision is made and money spent, do not allow that to impact the decision that needs to be made. (But be sure to add to the ROI calculations)
- Don’t: Get emotionally attached to a dream/vision: Someone has to play the role of “Devil’s Advocate”
GET A QUOTE OR CONTACT US
We are excited to help you optimize your rotary equipment process to the fullest of its potential.
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