Caveat emptor Equipment and Design - Industrial & Engineering

Publication Date: November 1950. ACS Legacy Archive. Cite this:Ind. Eng. Chem. 42, 11, 89A-90A. Note: In lieu of an abstract, this is the article's fi...
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Equipment and Design A bargain is where you find it-sometimes in used or secondhand chemical equipment bw CIuwle8 0 - m E BELIEVE in considering the use of suitable secondhand equipment whenever it shows a real saving in time or cost. The uncertain days ahead may compel many to fill essential needs from available stocks of used equipment. It therefore seems timely to consider this policy from several angles, and turn over some of the difficulties. Only experience can make one confident in this most hazardous market, but a review of certain factors may be helpful. Every piece of equipment found in the secondhand yard was sent there because someone did not want it. There are more honest reasons for not wanting a piece of equipmentremons which in no way reflect adversely on the quality and condition of the equipment-than there are specimens of trickery. Reliable yards used reasonable precautions to maintain the quality of their offerings, because a good name means quicker sales and, therefore, a quicker turnover of their capital. The general policies of the firms from whom they acquire the equipment is considered and also the circumstances making the equipment available are carefully looked into. The larger yards put a great many of their new purchases in their own shop and dismantle the piece as far as possible, both for inspection and perhaps reconditioning. Of course, this operation also shows a normal profit to the yard but adds to the cost, closing the gap between used and new equipment, But in this way all damage is discovered except that extraordinarily concealed and, if possible, repaired. Probably a piece of equipment is worked on now and then which may not need it. There is always a question whether reconditioning should be done at a used-equipment yard or by the manufacturer.

Notwithstanding all precautions, the possibility for defects which do not meet the eye are numerous and many unhappy buyers can recall just how it happened in their case. More often, the damage is unknown to the seller, but fraud also comes up once in a while in most unpredictable For example, we recall many years ago, when glass-~k?kquig ment waa not as good as it is now, a complete esterification kettle and reflux condenser were offered for sale. The seller waa a brilliant chemist with a Ph.D. degree, about fifty, who had amaased a considerable fortune, with his wide Fowledge by operating his own organic chemicals manufacturing plant. He was in his plant daily F d had operated this ester unit. When a buyer asked why the unit was for sale, the answer was, “We are not making that ester any more, and we do not need that unit.” The buyer asked how long the unit had been run, and learning it waa practically nepr, he bought it. The buyer was a genial chermst with many, many friends and more by chance than plan, he happened to mention to another chemist well ac uainted in the locality, that the doctor waa quitting the manufacture of this particular ester. His friend replied at once, “Oh, well, he will start up again when he gets a new unit or at least a new reflux condenser; hardly half a dozen esterifications were finished when he discovered the bo s had cracked the reflux condenser.” One of the runs had been teated up with the two water valves, one on the inlet and one impro erly on the outlet of the homemade piping job, ti htly closed? That one oversight was enough t o crack an insife wall of the condenser. There is no accounting for the doctor’s behavior, but it seems to.be a part of human nature one must watch for when buymg equipment. Some used equipment dealers are not well enough established to maintain a big yard or warehouse. They sell equip ment whenever possible in place, from a city office, often taking an option on an entire plant in order to obtain a storage and showroom from which to sell the equipment. Equip-

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ment should be purchased from such sellers only on a C.O.D. basis. This will avoid becoming enmeshed in the dealer’s credit, cash position, and other complicated arrangements which may not be to the buyers’ convenience or advantage. It has happened that large cash payments have been made to the dealers in the city offices, but the firms owning the equipment would not release it for one reason or another. Sometimes the dealer has failed to clean out and make available a needed part of the building, as he agreed to do when given the opportunity to sell the equipment. In other cases, the dealer has not met his terms on the equipment as required by his option. He therefore keeps the buyer waiting until he has collected enough cash advances to meet his payment to the owners of the equipment. This has happened many times and may delay delivery several months, nullifying one of the big advantages in using secondhand equipmentprompt availability. It is always best to buy used equipment as directly from the original owner as possible. When a dealer comes between, one should contact the owner and verify all representations of the dealer, checking the release and delivery; then purchase should be made on trial if possible, or a t least C.O.D. A real difficulty in buying used equipment for corrosive service is to determine just what alloys have been used in the construction. This should be easy, but actually it is not. The more indefinite the description of the apparatus becomes, the larger the number of possible uses and, presumably, customers who may be interested. However, it is an unknown which must be settled. Code-built vessels are well marked, but moving machine parts, centrifuge bowls, filter frames, and similar members are not always marked clearly, and markings are hard to inspect. With care, however, these data can be picked up accurately. If mistakes are made, someone must take a loss, and we do not believe it will be the seller;whether, a big yard or a small office dealer. It is generic in the purchase of any used apparatus, either chemical, automotive or others that the guarantee exchanged on such a sale is never rn sound and worth while as the guarantee of the manufacturer to the first buyer. This cannot be avoided. Some used equi ment dealers give a so-called guarantee on the equipment soh, which varies in form to fit various cases. It is of doubtful value; yet the price has probably been increased because of it. Chemical equipment is not different from any other piece of merchandise and, to constitute a bargain to the second purchaser, the rice must be considerably lower than the original price, even tfou h the equipment seems t o be little used, if at all. The hazarfs of the transaction and the fact that it is offered for sale a second time call for a considerable markdown in price. It seldom ha pens that this spread is aa great aa it should be because severaf factors which have entered the original cost distort the actual e uipment cost. Originally the equipment was probably skillfuiy and expensively crated to ensure safe delivery to faraway points as well as to nearby users. Equipment bought in the dealer’s yard is usually delivered nearby just as it came from inspection. The original price, therefore, is somewhat high in comparison with the used The second dealer has lower overhead, advertising, and sa?tj%pense. When all these items have been accounted for properly, then one can measure the cost economies in the transaction if any. When bargains are found in used (continuedon page 90 A )

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Equipment and Design equi ment, the price should be something of the order of two thirfs of the original price, and the bargain then is realprovided the equipment is practically new and found to be in perfect condition, suitable for the requirements of the job. Selecting a piece of used equipment is one of the best opportunities to apply chemical engineering studies. The available equipment usually is not an exact fit for your needs. Can it be made to fit and what will it cost? Some cases are easily solved but the method is much the same for all. The equipment is carefully surveyed for constructions and materials, then as carefully measured for design. These data are then rework& to establish FL new design, and the cost of modifications is estimated. Assume ~1 heat exchanger is somewhat large. It may be reduced by simply plugging some of the tubes at both ends, or removing the tubes and welding patches on the holes. The desired performance can be obtained for the fluid inside the tubes in this way, but the fluid outside the tubes has not been as correctly treated because the shell diameter has not been altered. Another factor must be considered : One must pay for the extra, weight; the dealer did when he purchased it, and yet this weight is reduced and the possibility of getting a bargain is less. I n other cases satisfactory modification if practically impossible. For example a road-building company needed a large Type T gyratory crusher with a 60-inch opening t o reduce traprock. A new crusher, weighing 950,000 pounds could not be delivered in less than 7 months. Success seemed t o smile on the contractor when a crusher of this make, type, and size was located, but it was discovered the massive frame was cast-iron. and semisteel at least was required for the tough traprock. This machine could not be modified practically to meet these needs. Moving machinery is often adjusted to meet size and capacity requirements by changing the speed of operation. The most satisfactory used equipment buys come from seasoned knowledge that a certain size and type of equipment made by a certain manufacturer just fills your needs and when such a piece is found in a yard in excellent condition for 70% of the new price. This kind of transaction can be closed head-on, so to speak, using only the simple precautions that delivery will be made promptly under conditions outlined in the first of this article. In a very broad and general way, secondhand buying might be divided into three classes, re uiring varying degrees of caution, skill, and care. It should be raatively easy to buy crushers, jaw and gyratory, roll crushers, batch ball mills, electrical transformers, xr-otors, pipe, and tankage. Not more than average difficultiesshould be enrountered when buying hammermilla, continuous pulverizers, dry mixers, agitated tanks, batch filters, screw conveyers, bucket elevators, iron and steel centrifu a1 pumps, valves scrubbers, and absorbers. A artial list of the more difficuit equipment to buy roperly wouls include. continuous filters, vibrating screens, [eat exchangers, disthation equipment, condensers, alloy chemical pumps, evaporators, dryers, solvent extractors, high pressure gas compressors, refrigeration equipment, and all instruments.

Our August column discussed development of the interesting and efficient “package” steam boilers that w e now available from several reputable manufacturers. Space limitations obviously did not permit discussion of all units available in addition to the Baboock and Wilaox model described to illustrate the topic. We trust this was understood by our readers. Neither did we intend to imply that thia wau the first such unit to be placed on the market. At least one similar unit w e introduced several years ago by the Foster-Wheeler Corporation.

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