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Asset Recovery for Automation Systems, DCS and PLC

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ControlTrader Guide and Information

Asset Recovery Introduction

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What is asset recovery?

  • Asset Recovery, also referred to as investment recovery or resource recovery, is the process of maximizing the value of unused or end of life assets through effective reuse or divestment. Automation systems are continuously, upgraded, migrated and replaced resulting in many unused systems and components, these assets should be recovered. The longer you wait the closer you are to not recovering the asset.

What is Automation Systems, DCS and PLC?

  • DCS (Distributed Control System) and PLC (Programmable Logic Controller) systems are specialized electronic systems used for Automation, Control and Safety in Industrial plants, Factories and Manufacturing industries.
Last Updated on Wednesday, 24 February 2010 06:45
 

ControlTrader Introduction

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At last a place to sell your unused DCS and PLC assets.

 

Present situation with unused DCS and PLC Equipment

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Storage

The Control System has just been upgraded and no one seems to know what to do with the old system, until we can figure out what to do with it we will just put it in storage. Storage could be done in two ways correctly and incorrectly. Correctly means properly packaged, handled and stored in the correct environmental conditions. Not being correctly stored refers to improper packaging, handling and stored in a non suitable environment; I have seen cubicles standing outside under a shelter gathering dust and few drops of rain occasionally. Warehouse conditions suitable for valves and pipes are not suitable for suitable electronic components. I have seen cards where the surface mount resistors were covered with a few micron thick layer of silver and an unnoticeable amount of exhaust gas from a combustion process in the vicinity of the warehouse caused the silver to be attacked thus changing the resistance of the resistors and all cards had to be repaired. Equipment Losing value Damage due to handling or environment Components failing due to old age, e.g. capacitors leaking Equipment Lost, Misplaced, Theft etc

Landfill

Some months after one of my DCS replacement projects I had a potential buyer for the replaced system. I immediately phoned the customer to enquire about the old system; they told me that they eventually got rid of all the old equipment because it was permanently in the way and taking too much workshop space. Their asset disposal option - they dug a hole and buried all the equipment. This is a financial and environmental crime.

Sell

Some systems get sold but that doesn’t mean much as these actual examples will demonstrate Equipment is sold on Auction or by Public Tender, but who is invited, mostly the local businesses and community, this might be fine if you are selling unused pipes, metal, office furniture etc. You will probably not get much of a response or price for Automation Systems, often it is a clever employee who buys the equipment for nothing and then resells it for a huge profit to someone else who he knows is in need of the equipment. This happens because the wrong market was targeted and the asset disposal department had no idea what a control system is, for them it is just another computer or something similar. Sold as scrap, so the original auction or selling process didn’t go well and the Asset Disposal Dept is still stuck with the equipment. Now it is over to plan B, we look at the equipment and determine the main composition like steel, aluminum, plastic etc and once determined we weigh the equipment and get the scrap dealers to buy it by weight. Sometimes DCS and PLC components are by default sold by weight as history has shown there is no buyers so why go through all the hassles. Imagine you buy a new car and then you sell your old car by weight as scrap metal, you don’t because you know its value and where the buyers are. Properly maintained DCS and PLC systems is not junk and should be treated accordingly. Sold at a very low price, luckily you found a buyer and he is the only one offering you a price so he gets it for a steal. Once again there is a market but you just do not know where it is.

Who knows

It is just missing Projects says ask Maintenance, Maintenance says ask Stores or Asset Disposal and just no one knows where the equipment has gone.

Sponsor or Donate

This is a good option if you are sure that the equipment will actually be used. I have seen systems sponsored to educational institutions and some of these systems never get up and running. A customer once told me that it is everyone's moral duty to make unused equipment available to the rest of the Automation community. Not sure who to sponsor or donate to then we will gladly accept your equipment and unsure it is re-used to the maximum.

Return to OEM

Some OEM's will buy back or exchange unused DCS and PLC components. Buy back could be subject to or part of a maintenance or sales contract. These contracts forms part of a long term strategy with the OEM and would probably not exist when you replace your Automation System with one from another OEM.

Destroy Equipment

The equipment normally remains stored for many years until it is forgotten, out of sight = out of mind. A slight staff turnover and who ever had possible plans for the equipment is now no longer in the company. A few weeks ago I visited a large Industrial company on request of a warehouse management company, here I saw 1 000's of computers and printers, 15 years worth of upgrades and replacements. My first question was what is the status of the equipment, no one was sure. Closer inspection revealed printers with parts missing and some computers with misaligned covers indicating that they have been opened and opened means someone probably stripped parts. If these items were properly marked, catalogued and packaged there would not have 1 000's of PC's with a unknown status. Needles to say the last few years dust and bird droppings was unbelievably thick on everything, this could have easily been prevented

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Last Updated on Thursday, 25 February 2010 09:36
 

The ControlTrader solution for unused DCS and PLC equipment

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What we offer you

  • Bridging the gap between Technical and Commercial departments
  • Openness and transparency
  • Know and create a market for your unused DCS and PLC assets

Last Updated on Thursday, 25 February 2010 09:08
 

ControlTrader Business Opportunities

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Are you a retired automation professional looking for a part time business?

Are you a System Integrator looking for something new?

You should consider joining the ControlTrader team, the sky is the limit, below some of your opportunities:

  • Site Audits and Consulting
  • DCS and PLC Decommissioning Engineer
  • Hardware Testing
  • Trader, buy and sell DCS and PLC assets via ControlTrader

Any of these sound interesting then please do contact us ASAP.