To replace or not to replace (an old hydraulic power unit)…?
When does replacing an old HPU make more “$ense”?
There is a time in every company’s production life when they come to a lifecycle crossroads. When an old hydraulic power unit (HPU) becomes more of a headache than a trusted workhorse.
And like most businesses, they are faced with the same age-old question:
When does it make sense to replace a hydraulic power unit versus repair an HPU?
In this blog, we’ll discuss the main topics to consider when determining whether it’s best “to replace or not to replace”.
What to consider when evaluating new vs. old systems
Initially, it may seem like good ‘ole reliable HPUs don’t need to get replaced – components are swapped, the units get repaired and they get back to running, 30, 40, 50 years strong.
If it ain’t broke, don’t fix it
Of course, this is figuratively speaking…
But what if you fully explored the idea of reinvesting in new hydraulic system solutions versus repairing old HPUs?
No one can argue with “Time is money”, but picking the right investment and team to work with is important. That choice enables growth or achieves production goals within tougher time constraints within a specified budget.
And although over 50 years of experience have taught us a plethora of things, we’ve found these 6 topics to consider are necessary when evaluating assets to determine the best course of action:
- Performance: Analyze diminishing returns
- Efficiency: Examine operating costs over time
- Obsolescence: Identify availability & compatibility issues
- Cost of Ownership: Compare cost of maintenance vs. investment
- Design & Technology: Determine point of maximum yield
- Remote Monitoring & Diagnostics: Evaluate predictive vs. preventative measures
Let’s discuss why these 6 topics of consideration are imperative to your assessment.
1. Performance: Analyze diminishing returns
New hydraulic system solutions incorporate design improvements and the latest technologies, which enhance overall system performance.
When hydraulic systems are built right, they can last decades in harsh conditions. But as time flies, every system experiences diminishing returns and performance begins to dwindle slowly, which can compound into larger issues.
Less unplanned maintenance ensures optimal performance, which means operations run smoothly. Threats to productivity are reduced compared to more frequent incidents (and typically unplanned), which are common with older hydraulic power units.
2. Efficiency: Examine operating costs over time
Over time, hydraulic power units experience wear and tear from repetition, leading to reduced efficiencies.
Seals deteriorate, valves leak, pumps and motors become less efficient and issues start to arise.
As system components lose efficiency from wear and tear, it significantly affects the hydraulic system’s ability to perform, which tends to draw more power. This can lead to elevated operating costs over time, on top of replacement component costs.
New hydraulic power units will use advanced control systems, variable speed drives and optimized components to slow wear and tear and reduce operating expenses over time.
3. Obsolescence: Identify availability & compatibility issues
Although an old hydraulic power unit may have reached its return on investment decades ago, it isn’t immune to a common problem: Obsolescence.
Hydraulic component manufacturers tend to focus on innovating current parts to stay ahead of the game, which leads to obsolete parts on older HPUs.
Not only would a company face part scarcity, which could drive costs up, but compatibility issues arise when a part is swapped out for an obsolete part.
This could possibly lead to system failures, which would add on a much larger expense, not to mention the unplanned downtime that could cost a company thousands by the hour.
Opting for a new hydraulic power unit ensures compatibility between equipment and control systems. Plus, there is a greater availability of parts featuring enhanced design and technologies for optimal performance.
4. Cost of Ownership: Compare cost of maintenance vs. investment
While repairing old HPUs with components is more cost-effective initially than the upfront cost of replacing an entire hydraulic power unit, the long-term cost of repairing the old HPU isn’t as worthwhile as it seems.
Compare the cost of all of the repair components multiplied by the frequency and dollars lost from maintenance downtime. It may be more expensive than your upfront cost of replacing the unit with a new one.
In addition, newer units would offer renewed reliability, improved performance and efficiency from design upgrades and newer technologies.
5. Design & Technology: Determine point of maximum yield
When a company buys any asset, it’s important to know when they will receive their return on investment (ROI) – it’s an essential part of planning, budgets, etc.
Part of that process is determining the point of maximum yield where diminishing returns turn into negative returns. At this point, the hydraulic power unit is actually costing the company money instead of making money.
Newer units can resolve this issue because they are designed with updated technologies that boost performance, enhance efficiency and increase productivity.
The long-term benefits outweigh the cost of ownership of the old unit compared to the upfront investment.
6. Remote Monitoring & Diagnostics: Evaluate predictive vs. preventative measures
Older hydraulic power units may have been reliable over decades but maintenance was reactive or on a schedule to get ahead of any unplanned downtime for maintenance.
If there were no redundancies set in place to run an operation continuously, production stopped for maintenance, which could cost companies thousands of dollars an hour.
Newer technology has given operators more control with remote and/or real-time monitoring and diagnostics.
Hydraulic systems can be outfitted with these technologies to help companies implement predictive maintenance programs.
Not only will operations run more smoothly and improve overall efficiency, operators can identify potential issues before they lead to downtime.
Bottom Line: Assess Your Assets
Going beneath the surface and evaluating current assets will clarify whether the best course of action is to continue repairing older assets or to replace them with new hydraulic systems.
Our customers trust us to solve their performance, efficiency and or design issues because of our over 50 years of experience and in-house Engineered Systems team.
We can assist you with a current system assessment and determine the right hydraulic, fluid connector or pneumatic solutions that meet application requirements, productivity needs, budget and timeframe.
Contact us to help you evaluate your current state of affairs and come up with a solution that fits your needs.
