The Replace, Repair or Retrain Decision

Summary

There comes a time in any product’s lifecycle when a difficult decision may have to be made. Whether it’s a faithful old pickup truck, that trusty 9-iron that always bailed you out or a tired 3-axis mill that seems to get a little farther from tolerance with each turn, it’s easy to get attached.

Shop owners are familiar with these decisions. How do you know when it’s time to fish or cut bait? Do I keep investing in replacement parts and take the hit on more downtime, or bite the bullet and invest in a new machine? Are my employees positioned for success on our current machine lineup or do we need to reassess our capabilities and retrain operators to do more work that the machines can handle better?

These can be tough decisions but consider the following four steps for making the best choices for your needs.
 

Step 1: Assess machinery and operator skill levels

Good machines that are well maintained enable you to produce better, more accurate parts. However, there are a few variables to consider when determining what it takes to optimize shop performance and get to that level.

How frequently do you repair a certain machine? Does this machine still meet current production demands, or is it slowing operations (and profitability) down? How do ongoing annual maintenance costs—combined with your scrap rate—compare to the amortized costs of a new machine? Is it compatible with other machines in the shop (and industry), or does it stand out in its obsolescence and perform like a dinosaur among newer, more efficient and technologically advanced machines? Evaluate how a quality machine tool can pay for itself in time.

Consider how your return on investment can provide a good comparison of where you are now, where you want to go and what it will take to get there.

When you evaluate your machines, you should also evaluate the people who operate them. Continuing education and training opportunities also can help breathe new life into old habits. Is it the older model lathe that needs an update, or is the real issue, as the auto repair saying goes, “the loose nut behind the wheel?”

Regardless of skill level or machine familiarity, technology changes with time, and there is always an opportunity for employees from shops of any size to refresh their skillset and learn about new techniques with education and training.

That’s why Okuma established the Okuma Machine Tool Academy (Figure 1) in partnership with Rowan-Cabarrus Community College. Learn new skills or enhance time-honed talent with hands on and classroom instruction. Improve job performance and satisfaction. Boost employees’ confidence with personal and professional development. Check out the upcoming class schedule and sign up for updates so you never miss an opportunity to give your team the added skills they need to raise your shop’s game.

Step 2: Evaluate repair versus replacement costs

We put our machines and our tools through a lot, and we expect a lot out of them in return. You can switch out ball screws and even change a spindle, but the years and revolutions take a toll. Sometimes, machines just reach critical mass. Do the accumulating costs of repairing the same machine outweigh what you could put into a new, more productive machine?

If you’ve been in business long enough, you probably feel like you never have enough machines, so the thought of getting rid of one or spending just to have the same number of machines can be troubling. Honest consideration of the total cost of ownership (TCO) and the return on investment (ROI)—not including better performance with fewer interruptions you can expect with a new machine—can (and should) bear considerable weight on a purchasing decision.

When you buy a vehicle, you consider the ongoing, expected lifetime costs of maintenance, fuel, depreciation, etc. The same should be considered with your CNC machine tool; about 15 percent of a machine’s total cost is in its initial purchase price, with the balance of 85 percent being realized over the lifetime of its operational costs. Warranty is another consideration. Our Affordable Excellence machines come with an industry-leading three-year warranty on parts and a five-year OSP control warranty. When you buy an Okuma machine, we consider you a customer for life.

Step 3: Understand new machine advantages

What do you do with an aging machine lineup? Throw more money on the fire to try and fix machines or take on a little debt with new machines? Before long, you’ve spent tens of thousands to fix an old machine. Costs accumulate when you’re dumping money into something that could have been replaced for the same cost years ago.

We referenced compatibility with other machines, and technological capability is an equally important consideration to make—how much more can I do today with a new machine than I could with an older machine that likely doesn’t have the added benefits of technological innovation we’ve experienced in the last 10 to 20 years?

Not only does your tired but aging machine also lack the advances you need to be more productive and efficient, but you—and your customers’—confidence waivers. You also just don’t trust the old ones to press a button and walk away. When you employ new technology, you unlock an expanded scope of capabilities, including introducing automation to your shop. Investing in built-to-last machines is a great sales tool that shows your customers you’re committed to innovation and delivering precise and dependable parts.

Or consider a new machine with a next-generation CNC control. What happens when you upgrade an older mobile device with a new one? You’re initially shocked at the enhanced performance and security upgrades and wonder how you got by for so long with an older, slower, outdated model. The same is true with your CNC control. Purchasing a new machine can be an eye-opening experience when you realize the greater processing power and performance that comes with a next-generation control like the Okuma OSP-P500 (Figure 2). You’ll be able to run multiple programs simultaneously on a simple and secure interface that is also more energy efficient.

Step 4: Realize new machine benefits

What happens when you and your team lose trust and faith in the machines to make good parts? You’ll waste a lot of downtime, money and materials reworking excessive test pieces that only end up in the scrap bin—in addition to frustrating machine operators. If you spec out pricing on one part and need to make five to get there, your returns will be very skewed; with very expensive materials, it can add up quickly. You’ll also spend more time rearranging production schedules than producing parts.

Investing in a new machine is an important decision that requires due diligence and careful consideration, but don’t be intimidated. There are options available, regardless of the size or scope of your operations, that empower you to take on more profitable jobs and do more than you ever thought possible. One option is the Okuma Affordable Excellence line, an offering that makes quality machine tools available to everyone thanks to Okuma’s accessible pricing program.

While replacing aged equipment with newer, more energy-efficient products certainly can impact capital expenditure budgets, these can be offset by lower operating expenses over its lifecycle. That’s because, as no surprise to anyone, newer products like windows, refrigerators or vehicles are engineered to be more efficient so you can do more with less.
 

Looking ahead

If your operating structure follows a low- to no-debt model that relies on low overhead and uses cash to pay for capital expenses, the prospect of taking on new machine debt and lower margins may seem daunting. But there are always options—financing, budgeting replacement costs throughout the lifecycle of the equipment or overcoming your own misconceptions about new machine costs and the many ways that can be mitigated, including increased capabilities that yield greater returns.

_{This feature originally appeared in the May 2025 edition of Automation.com Monthly.}