My son Benjamin turned 9 last month. For his birthday, we bought him a
new mountain bike with all the bells and whistles: front shocks, rear
mono-shock, front disc brake and 21-speed derailleur. I still can’t get
over the price. It was only $149, and that was the regular ticket price.
Of course, it was made in China.car nok oil seals.
When you look at the finished product, you wonder how it could be so
cheap. The retailer has his margin in there, and there’s also shipping
costs to consider.
While the bike looks like a top-quality product, only time will tell.
But even if much did go wrong with it, for this sort of money, it would
likely be cheaper to buy another one and cannibalize the original for
spare parts. It is hard to argue with the economics.
As we all know, this is not just happening with bicycles. Whether we
like it or not, China is currently the world’s leader in low-cost
manufacturing, which includes hydraulics.
Hydraulic machines and most of their components are big-ticket items, so
upfront savings are always seductive. But as I discuss in detail in
Insider Secrets to Hydraulics, when considering a cheaper alternative,
it’s important to weigh what you will save if it lives up to
expectations versus what it could cost you if it doesn’t – and whether
you’re willing to carry the risk to find out.car nok oil seals.
This is another way of saying that the initial or upfront cost isn’t
necessarily the most important consideration. Instead, it’s the
life-of-ownership cost that counts the most. This involves thinking
beyond the here and now. Superficially at least, the math is fairly
simple. Just add the initial capital cost of the machine or component
with the cost of keeping it running over the course of its useful life.
While the capital cost is easy to quantify, the lifetime operating cost
is more difficult to calculate because it is usually dependent on the
first variable.
Regular readers of this magazine are well aware of the importance of
proactive maintenance and the influence it has on the life-of-ownership
cost of any asset, including a hydraulic one. Of course, maintenance
tasks consume time and resources, and therefore the need for maintenance
should be designed out rather than designed in. However, this almost
always means a higher initial investment, at which the majority of
hydraulic equipment buyers baulk.
This is why we are likely to see Chinese hydraulic manufacturers make
fairly rapid inroads into Western markets. Their entry strategy will be
based on price, and a lower initial capital outlay will prove
irresistible for a large number of potential owners. It’s happening
already. Most of us can probably think of an example.
But the Chinese are copiers, and they’re not always good at it.
Obviously, the quality of individual components affects the reliability
of the machine as a whole. For instance, if the entire machine was built
in China, which factory did the machine’s hydraulic filters come from?
Did they come from a reputable filter manufacturer’s facility in China
or a “me-too” outfit? If from the latter, how well will they perform?
78% of lubrication professionals consider the lifetime operating
cost of the equipment as the most important factor when purchasing a new
machine or component, according to a recent survey .car nok oil seals.
Also, where was the design of the hydraulic system borrowed? As pointed
out previously, with most established equipment manufacturers in the
Western world designing with one eye on initial capital cost and the
other (blind) eye on reliability, the Chinese won’t be taking the lead
in this area anytime soon.
So by copying hydraulic designs that are less than ideal from a
maintenance and reliability perspective, and then building these
machines with components that may not be up to snuff, the learning curve
for Chinese manufacturers and their customers could be long and at
times painful.
As far as machines go, my son’s new bicycle is about as unsophisticated
as it gets. Provided the brakes don’t fail and the wheels or handlebars
don’t snap off, its safe operation is not too much of a concern. Of
course, I checked that everything was secure and correctly adjusted, and
rode it around the block myself before I put him on it.
I’m sure my son will grow out of his new mountain bike long before he
wears it out. But in the case of a Chinese-made hydraulic machine, if
it’s half the price of a locally made unit and lasts better than half as
long without any safety incidents, the economics may be OK.
On the other hand, if it’s half the price and only lasts a quarter as
long, the economics don’t stack up. So how do you know? The reality is
that you don’t. The same goes for Chinese-made hydraulic replacement
parts or components. It’s just not realistic to pay a quarter or even
half the price and expect the same performance or service life.
This is not to say that such economics can never be a good deal for the
end user of the hydraulic equipment. car nok oil seals.It may indeed
have a happy ending, but only if the user knows the devil he’s dealing
with, has considered the possible safety implications and has a large
enough economic margin of safety built in. These are the only reasons
why my son is riding around on a new mountain bike made in China.
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