When should an Original Equipment Manufacturer (OEM) remanufacture?

Table of Contents

1. Introduction

2. Literature Review

2.1. Theoretical Background

2.1.1. Reverse Logistics and Closed-Loop Supply Chains

2.1.2. Definitions Remanufacturing, Returns and OEM

2.1.3. Remanufacturing Benefits

2.1.4. Remanufacturing Issues

2.2. Characteristics Influencing the Remanufacturing Decision

2.2.1. Product Characteristics

2.2.2. Internal Characteristics

2.2.3. External Characteristics

2.3. Conceptual Framework and Relevance

3. Methodology

3.1. Research Approach

3.2. Survey Design

3.3. Data Collection and Sample Descriptives

4. Analysis

4.1. General Returns Management and Recovery Options

4.2. Remanufacturing and Influencing Factors (Hypothesis Testing)

4.3. Ranking and Summary of Influencing Characteristics

4.4. Insights from Practitioners (Cases and Interviews)

4.4.1. Industrial Production Case: Production and Quality Assurance Staff

4.4.2. Automotive Case: Remanufacturing Specialists

5. Discussion

6. Conclusion

7. Managerial Implications

8. Limitations & Future Research

Research Objectives and Themes

The primary objective of this master's thesis is to provide structured guidance for the remanufacturing decision process within Original Equipment Manufacturers (OEMs). The study aims to bridge the existing gap between academic research and industrial practice by identifying and empirically testing the most relevant factors that influence a company's decision to adopt remanufacturing processes.

• Theoretical identification of factors influencing remanufacturing (product, internal, and external characteristics).
• Empirical hypothesis testing via industry surveys across multiple manufacturing sectors.
• Development of a managerial framework for evaluating remanufacturing feasibility.
• Comparative analysis of industry-specific barriers and drivers in the automotive and industrial production sectors.
• Assessment of current remanufacturing maturity, profitability, and saving potentials in large enterprises.

Excerpt from the Book

Summary of Chapters

1. Introduction: Discusses the rising importance of reverse supply chains due to sustainability and economic factors and defines the research scope.

2. Literature Review: Synthesizes existing definitions and theoretical backgrounds of closed-loop supply chains and identifies core characteristics that influence remanufacturing decisions.

3. Methodology: Details the research approach, survey design, and data collection process conducted among 38 respondents from various industries.

4. Analysis: Presents the statistical evaluation of hypotheses and provides qualitative insights from industry experts in the industrial production and automotive sectors.

5. Discussion: Evaluates the empirical findings, contrasts them with the formulated hypotheses, and discusses implications for companies.

6. Conclusion: Summarizes the research outcomes and emphasizes the need for companies to adopt structured approaches for remanufacturing decisions.

7. Managerial Implications: Offers a practical framework for managers to assess remanufacturing feasibility based on product, internal, and external criteria.

8. Limitations & Future Research: Acknowledges constraints regarding sample size and industrial focus, suggesting directions for future academic inquiry.

Keywords

Remanufacturing, Original Equipment Manufacturer, Closed-Loop Supply Chain, Reverse Logistics, Product Life Cycle, Modularity, Cannibalization, Residual Value, Sustainability, Process Optimization, Managerial Framework, Industrial Manufacturing, Automotive Sector, Empirical Research, Returns Management.

Frequently Asked Questions

What is the core focus of this thesis?

The thesis explores the strategic decision-making process for Original Equipment Manufacturers (OEMs) regarding whether and when to implement remanufacturing operations.

Which fields are covered in the research?

The study primarily focuses on supply chain management, specifically examining reverse logistics, closed-loop supply chains, and the technical and market-related factors influencing product recovery.

What is the primary research question?

The central question is: "When should an original equipment manufacturer (OEM) remanufacture?"

What research methodology was employed?

The author conducted a systemic literature review followed by an empirical online survey and expert interviews at the ReMaTec 2015 fair to validate the theoretical framework.

What aspects of remanufacturing are discussed in the main part?

The main part analyzes product, internal process, and external market characteristics, testing hypotheses on their positive or negative impact on the decision to remanufacture.

How is the work characterized by keywords?

Key terms include Remanufacturing, Reverse Logistics, Closed-Loop Supply Chain, Sustainability, and Managerial Framework.

How does the industrial production sector differ from the automotive sector regarding remanufacturing?

The study found that industrial production companies often prioritize process factors like predictability and costs, while automotive firms emphasize product features like modularity and the maintenance of a long-standing remanufacturing portfolio.

Why are processing costs considered a major influencing factor?

Statistical analysis showed that high processing costs are a significant barrier, as they must be weighed against the intrinsic residual value of the returned products to ensure overall profitability.

What role does the deposit system play in remanufacturing?

As identified in the automotive case study, a deposit system is essential for ensuring the steady return flow of used products, which serves as the "lifeblood" for remanufacturing activities.

What is the primary managerial recommendation?

Managers are advised to perform structured feasibility checks using the developed framework to ensure that factors like product life cycle, modularity, and customer perception are aligned before initiating remanufacturing.