___________________________________________________________________________
2009/SOM1/MAG/WKSP/004
Importance of Refurbished Parts for Servicing
Computer Systems
Submitted by: Dell
Remanufacturing Workshop
Singapore
21 February 2009
Importance of Refurbished Parts
for Servicing Computer Systems
David Thompson of Dell Inc.
APEC - Singapore
Feb 21, 2009
Page 1
Field Service Planning
Agenda
Representing IT industry’s general practice
Refurbished Service Parts Benefits:
APEC Economies
Reduces Cost to Customer
High Quality Standards
Environmentally Friendly
Market Access - Support Request
Removing Trade Barriers (outside APEC)
Page 2
Field Service Planning
1
General IT Industry Service Flow
2
Warranty replacement part is sent to fix customer’s
computer right away. Defective part returned to
manufacturer. CUSTOMER SATISFACTION
Customer’s computer breaks
3
1
4
Defective Part is refurbished
to “ like new” status
HIGH QUALITY PARTS
GOOD FOR ENVIRONMENT
POSITIVE IMPACT TO APEC
Refurbished parts shipped to
warehouses worldwide to
support future customer service
calls. MARKET ACCESS /
LOWER COST TO CONSUMER
Field Service Planning
Page 3
Refurbished Parts Support Customers Globally
Refurbished Globallyide
parts readily accepted / shipped to support customers globally
OEM
p
Repair
Facility in
China
Singapore
S
Distribution
Center
Customer
in Peru
Local OEM
authorized third
party repair in
Australia
Defective Return
Refurbished Fulfillment
Page 4
Field Service Planning
2
Positive Impacts of Refurbished Parts
 APEC Economies
 Refurbished IT products originate from OEMs (Original Equipment
Manufacturers) - most of which are located in APEC countries
 Decreases
D
C
Costt tto C
Customer
t
 Supporting all new parts for product lifecycle / portfolio costly
 Enables Improved Customer Satisfaction
 Perhaps only source of components for legacy systems
 Environmentally Friendly
 Reduces landfill impact > parts re-used; OEM warranty incentive
 High Quality Standards
 Refurbished parts undergo comprehensive, consistent and
certified test and repair processes to ensure product quality
Page 5
Field Service Planning
Refurbished IT Faces Trade Barriers
Market Access is vital to fulfill warranty
obligations
 Critical customers: Hospitals, Banking, Militaries
 Positive export impact: APEC and IT industry
Typical Trade barriers (outside the APEC economies)
Import Prohibitions
Restrictions:
 Excessive documentation
 Import
p license requirements
q
Border Delays:
 Lengthy inspections
A 10% increase in border processing times reduces exports by
10% as one of the indicators of economic impact
Field Service Planning
3
Benefits Summary
Positive Impact to APEC economies
Decreases Cost to Customer
Increased Customer Satisfaction – Parts
Availability
Environmentally Friendly
High Quality Standards
Global Market Access > Support Request
Page 7
Field Service Planning
THANK YOU
QUESTIONS?
Page 8
Field Service Planning
4
Backup
Field Service Planning
Page 9
High Quality Parts
Remanufactured IT products undergo comprehensive,
consistent and certified processes to ensure product quality

Inspected, tested and
remanufactured to OEM
technical and current safety
specifications

Performed by OEM or OEM
authorized service provider to
ensure quality and
consistency

Warranted and supported
similar to a new good
A variety of processes are employed, as appropriate for the particular product, such as:
I
Inspect
t & Test
T t
R
Repair
i
• Diagnostic testing
• Functional testing
• System testing
Data
Cleanse
Load
Software
S
ft
& fixes
As applicable
erase data
• Replace faulty
components
• Upgrade to
current technical
bulletins
• If applicable,
reload operating
software
• Load software
fixes, patches, new
revisions
Cosmetic
Service
• Clean
• remove oxidation
• remove scratches
• remove and relabel
• repaint
C fi
Configure
R
Repackage
k
• If applicable, add
memory, storage,
to meet customer
and product
specifications
Field Service Planning
5
Refurbished IT Products Are Clearly Identified
 Remanufactured IT products are
marked differently in order to
distinguish them from equivalent new
product and used products
 Statements on invoices/shipping paperwork,
 Stickers and labels on boxes and equipment
 Marketing material/branding
 Some countries have specific
labeling and marking requirements
for non-new products.
Field Service Planning
6