Method, system and program product for generating a demanufacturing price quote

[0001] U.S. patent application Ser. No. 09/524,366, entitled METHOD OF DEMANUFACTURING A PRODUCT by E. J. Grenchus et al., and Ser. No. 09/923,470, entitled SYSTEM AND METHOD FOR FORECASTING DEMANUFACTURING REQUIREMENTS by E. J. Grenchus et al., contain subject matter related, in certain respect, to the subject matter of the present application. The above-identified patent applications are incorporated herein by reference.

[0002] The present invention generally relates to a method, system, and program product for generating a demanufacturing price quote. Specifically, the present invention allows price quotes to be generated for the processing of end-of-life electronic equipment that is to be dismantled, recycled or otherwise disposed of in an environmentally safe manner.

[0003] As the life cycle of computers and other complex electronic equipment continues to decrease due to new technology and improved processing performance, the useful life span of equipment has become correspondingly shorter. Processing this equipment and salvaging useful components and materials has become imperative from both an economic and environmental standpoint. As a result, dismantle and salvage, and other demanufacturing enterprises are receiving an increasing volume and diversity of returned end-of-life equipment. These enterprises are faced with the problem of determining the potential value of, and processing expense for, heterogeneous lots of equipment when generating price quotes to process such lots of equipment. Usually, one or two predominant factors, such as commodity market recovery prices or contaminated material content, are taken into consideration by an agent of a demanufacturing enterprise, who may add an intangible factor based upon his or her personal experience to the decision process when generating a price quote. However, in the electronics sector, specifically when dealing with computers and other types of information technology equipment, the variability of the internal content and complexity of items contained within a given lot of equipment makes this type of decision methodology impractical. A quote may be generated at a price that is too low and therefore unprofitable, or even worse, such that an enterprise may lose money on the quote. Alternatively, a quote may also be too high, causing an enterprise to lose the work being sought altogether, and thereby lose revenue. Numerous factors such as brand, processor speed, type of equipment, and system age must be taken into consideration, affecting not only recovery potential, but processing expense. When these factors are coupled with the volatility of prices in the recyclable goods commodity markets, the decision process becomes increasingly difficult. Given a situation where a customer does not have a clear understanding of the internal content of the equipment to be scrapped, generating a profitable, yet competitive price quote becomes even more difficult.

[0004] In view of the foregoing, there exists a need for a method, system and program product for generating a demanufacturing price quote that, quickly and with relative accuracy, estimates the costs and recoveries associated with a given heterogeneous lot of electronic equipment.

[0005] It is believed, therefore, that a method, system and program product for generating a demanufacturing price quote which provides the many advantages taught herein would obviate many of the problems and limitations described hereinabove, and would constitute a significant advancement in the art.

[0006] It is a primary object of the present invention to enhance the art of demanufacturing price quote generation.

[0007] It is another object of the invention to provide a method (and system and program product) for generating a demanufacturing price quote which functions in a new and unique manner.

[0008] It is yet another object of the invention to provide a method (and system and program product) for generating a demanufacturing price quote that, quickly and with relative accuracy, estimates the costs and recoveries associated with a given lot of electronic equipment.

[0009] In accordance with one embodiment of the invention, there is provided a method for generating a demanufacturing price quote comprising providing a list describing at least one piece of equipment, defining at least one representative equipment group, determining and storing at least one default data value in said at least one representative equipment group, categorizing said at least one piece of equipment into said at least one representative equipment group, determining a group quantity of equipment in said at least one representative equipment group, multiplying said group quantity of equipment by said at least one default data value, and calculating a profit or loss for said at least one representative equipment group.

[0010] In accordance with another embodiment of the invention, there is provided a method for generating a demanufacturing price quote comprising providing a list describing at least one piece of equipment, defining at least one representative equipment group, determining and storing default data values in said at least one representative equipment group, storing study data values in said at least one representative equipment group if said data study values have been determined, categorizing said at least one piece of equipment into said at least one representative equipment group, determining a group quantity of equipment in said at least one representative equipment group, multiplying said study values and said group quantity if said study values exist for said at least one representative equipment group, or multiplying said default data values and said group quantity if said study values do not exist for said at least one representative equipment group, and calculating a profit or loss for said at least one representative equipment group.

[0011] In accordance with yet another embodiment of the invention, there is provided a system for generating a demanufacturing price quote comprising at least one representative equipment group having just default data values, or both default data values and study data values, and a demanufacturing price quote processor adapted to utilize said study data values if said study data values exist for said at least one representative equipment group, or to utilize said default data values if said study data values do not exist for said at least one representative equipment group.

[0012] In accordance with yet another embodiment of the invention, there is provided a program product stored on a recordable medium for generating a demanufacturing price quote, which when executed, comprises program code for providing a list describing at least one piece of equipment, program code for defining at least one representative equipment group, program code for determining and storing at least one default data value in said at least one representative equipment group, program code for categorizing said at least one piece of equipment into said at least one representative equipment group, program code for determining a group quantity of equipment in said at least one representative equipment group, program code for multiplying said group quantity of equipment by said at least one default data value, and program code for calculating a profit or loss for said at least one representative equipment group.

[0013] In accordance with yet another embodiment of the invention, there is provided a program product stored on a recordable medium for generating a demanufacturing price quote, which when executed, comprises program code for providing a list describing at least one piece of equipment, program code for defining at least one representative equipment group, program code for determining and storing default data values in said at least one representative equipment group, program code for storing study data values in said at least one representative equipment group if said data study values have been determined, program code for categorizing said at least one piece of equipment into said at least one representative equipment group, program code for determining a group quantity of equipment in said at least one representative equipment group, program code for multiplying said study values and said group quantity if said study values exist for said at least one representative equipment group, or multiplying said default data values and said group quantity if said study values do not exist for said at least one representative equipment group, and program code for calculating a profit or loss for said at least one representative equipment group.

[0014] The above and other objects, features and advantages of the present invention will be better understood by reading the following more particular description of the invention in conjunction with the accompanying drawings wherein:

[0015] FIG. 1 is a schematic view illustrating representative equipment group data according to one embodiment of the invention.

[0016] FIG. 2 is a flow diagram illustrating a process for generating a price quote according to one embodiment of the invention.

[0017] FIG. 3 is a schematic view illustrating a system for generating a price quote according to one embodiment of the invention.

[0018] The drawings are merely schematic representations, not intended to portray specific parameters of the invention. The drawings are intended to depict only typical embodiments of the invention, and therefore should not be considered as limiting the scope of the invention. In the drawings, like numbering represents like elements.

[0019] As indicated above, the present invention provides a method, system and program product for generating a demanufacturing price quote. Specifically, the present invention allows price quotes to be generated, quickly and with relative accuracy, for the processing of end-of-life electronic equipment that is to be dismantled, recycled or otherwise disposed of, by estimating the costs and recoveries associated with processing a given lot of electronic equipment.

[0020] Referring to FIG. 1, there is shown an embodiment of representative equipment group 100. When a demanufacturing enterprise receives or develops a list of equipment describing the contents of a given lot of equipment for which a demanufacturing price quote is requested, a plurality of instances of representative equipment group 100 are defined, and the equipment listed as being contained in this lot of equipment is respectively categorized into appropriate instances of representative equipment group 100.

[0021] Some exemplary instances of equipment group 100 are described hereinbelow. For Desktop PCs, instances of representative equipment group 100 may comprise: CPU onlyOld, CPU onlyNew, Complete SystemOld, and Complete SystemNew. For Laptops, instances of representative equipment group 100 may comprise: LaptopOld and LaptopNew. For Intermediate Systems, instances of representative equipment group 100 may comprise: Small Server, Medium Rack Mounted, and Large Rack Mounted. For Large Systems, instances of representative equipment group 100 may comprise: DASD and Mainframes. For Monitors, instances of representative equipment group 100 may comprise: Monitor OldSmall, Monitor OldMedium, Monitor OldLarge, Monitor Late ModelSmall, Monitor Late ModelMedium, Monitor Late ModelLarge, Terminals, and Flatscreen. For Printers, instances of representative equipment group 100 may comprise: PrinterDot Matrix, PrinterInkjet, PrinterGreenbar, PrinterLaser, PrinterNetwork, PrinterMainframe, PlotterPersonal, and PlotterBusiness. For Point of Sale Systems, instances of representative equipment group 100 may comprise: Point of Sale SystemMonitor Separate, Point of Sale SystemCRT Type Monitor, Point of Sale SystemPrinter, Point of Sale SystemMonitor and Printer. Other miscellaneous instances of representative equipment group 100 may comprise: Keyboard, Scanner, FAX Machine, CopierTabletop, CopierFreestanding, Docking Station, Hubs, Switches, Modems, Telephones, and Uninterruptible Power Supply (UPS).

[0022] These instances of representative equipment group 100, described hereinabove by way of example, are not intended to portray an exhaustive list, and as many additional instances of equipment group 100 as there are known types of electronic equipment may be defined.

[0023] For each instance of representative equipment group 100 that is defined, a plurality of data values relevant to the instance are determined and stored in the instance. If data values are determined based upon the personal knowledge or experience of an agent of a demanufacturing enterprise, or another person with relevant knowledge or experience in the field of demanufacturing, these data values are stored as default data values 102. Alternatively, if data values are determined based upon a dismantle study of a piece of equipment that is typical, and representative of, a given instance of equipment group 100, these data values are stored as study data values 104. A dismantle study is an investigation wherein an experienced demanufacturing worker, or workers, dismantle a piece of equipment, and a record is kept of data values related to the piece of equipment. If a plurality of dismantle studies for a given instance of equipment group 100 are available, respective data values of the plurality of studies may be averaged, providing an improvement in the representativeness of the data values as compared to a single study.

[0024] Examples of data values that may be stored in an instance of representative equipment group 100 as default data values 102 and study data values 104 are described with reference to FIG. 1 hereinbelow.

[0025] Part content 106 comprises data as to whether an instance of representative equipment group 100 contains reusable parts that may be removed and sold, as well as the type and quantity of these parts. It is generally preferred that a part be sold rather than shredded and recycled, as selling a part generally provides a greater financial return, and reduces disposal costs that would otherwise be incurred. Part value 108 comprises data as to the market value of the parts of part content 106. Part value 108 may be expressed in units of monetary value per part, in one example dollars per part.

[0026] Labor 110 comprises data regarding amounts of time respectively utilized to perform tasks related to demanufacturing an instance of representative equipment group 100. Labor 110 tasks may comprise transportation, receipt, inventory, handling, limited dismantle, dismantle, shred, module sales, part sales, machines sales, and other. Labor 110 may be expressed in units of time, for example in hours or minutes. Labor Cost 112 comprises data regarding labor rates for performing the tasks of labor 110. A single labor rate may be utilized for all the tasks of labor 110, different rates may be respectively utilized for different categories of labor of labor 110 (e.g. one rate may be utilized for dismantle tasks, and another may be utilized for sales tasks), or different rates may be respectively utilized for all the tasks of labor 110. Labor rates may be determined during periodic financial planning cycles of demanufacturing enterprises. Labor cost 112 may be expressed in units of monetary value per units of time, in one example dollars per hour.

[0027] Hazardous content 114 comprises data as to whether an instance of representative equipment group 100 contains hazardous material. If hazardous material, in one example Poly-Chlorinated Biphenyls (also known as PCBs), are contained within an instance of equipment group 100, special handling, and therefore additional labor costs, may be required to ensure the safety of demanufacturing workers, or to comply with government regulations. Also, significant hazardous material disposal costs may ensue.

[0028] Weight 116 comprises data as to the weight of an instance of representative equipment group 100. This data may be utilized to estimate labor comprising transportation, receipt, inventory, and handling, as well as commodity content and trash content which are described hereinbelow. Weight 116 may be expressed in units of weight, for example pounds or kilograms.

[0029] Commodity content 118 comprises data as to whether an instance of representative equipment group 100 contains commodities that may be removed and sold, as well as the types and amounts of these commodities. Commodity content 118 types may comprise steel, aluminumhigh, aluminummixed, copperhigh, coppermixed, copperfoil, coppertrim, silver wire, goldhigh, goldmixed, goldends, platinumhigh, platinummixed, plastic, softfoam, glass, paper, cardboard, and other. Commodity content 118 types may also comprise components, or even an entire piece of equipment, that are sold as commodities rather than reusable parts. Commodity content 118 types may therefore further comprise a complete piece of equipment, keyboards, disk drives, blowers, fans, pumps, hoses, and wire. Commodity content 118 amounts may comprise respective percentages, by weight, of given commodity content 118 types contained in the instance of equipment group 100. A total quantity of a given commodity content 118 type may therefore be estimated using a respective commodity content 118 amount and weight data from weight 116. Commodity value 120 comprises data as to the market value of the commodities of commodity content 118. Commodity value 120 data may be obtained from sources comprising quotes from recycling and smelting enterprises, Internet websites such as the RecycleNet Composite IndexOnline Market Prices website, and previous commodity sales. Commodity value 120 may be expressed in units of monetary value per units of weight, in one example dollars per pound.

[0030] Trash content 122 comprises data as to whether an instance of representative equipment group 100 contains trash which may not currently be sold or recycled, and which should therefore be removed and disposed of in an environmentally safe manner. Trash content 122 may further comprise data as to percentage of trash, by weight, in the instance of equipment group 100. A total quantity of trash in the instance of equipment group 100 may therefore be estimated using percentage of trash data, by weight, from trash content 122 and weight data from weight 116. Trash disposal cost 124 comprises data as to the cost to dispose of the trash of trash content 122, for example hauling costs and landfill fees, in an environmentally safe manner. Trash disposal cost 124 may be expressed in units of monetary value per units of weight, in one example dollars per pound.

[0031] Referring now to the flow diagram of FIG. 2, method steps according to an embodiment of the present invention are shown.

[0032] A list of equipment in a given lot of equipment to be demanufactured is received or developed in step 200. The equipment in this lot of equipment is respectively categorized into appropriate instances of representative equipment group 100 in step 202.

[0033] The quantity of equipment in an instance of representative equipment group 100 (hereinafter referred to as group quantity) is determined in step 204 by computing the total number of pieces of equipment in the instance of group 100. Processing for equipment in the instance of equipment group 100 is determined in step 206. This may comprise selling the equipment outright if a market for the equipment exists, removing parts from the equipment if resalable parts are contained therein, separating out and selling commodity content, separating out and sending trash content to a landfill, or any combination thereof.

[0034] In step 208, a determination is made as to whether or not study data values 104 exist for the instance of representative equipment group 100. If study data values 104 do exist for the instance of group 100, in step 210 study data values 104 are utilized and multiplied by the group quantity computed in step 204. If study data values 104 do not exist for the instance of group 100, in step 212 default data values 102 are utilized and multiplied by the group quantity computed in step 204.

[0035] Profit/Loss for the instance of equipment group 100 is calculated in step 214 by adding all of the recoveries from outright sales of intact equipment, sales of parts and commodity content, and subtracting labor costs, transportation costs, hazardous material disposal costs, trash disposal costs, and other costs.

[0036] In step 216, a determination is made as to whether or not there is another instance of representative equipment group 100 into which equipment was categorized in step 202, and which has not yet been processed. If there is another instance of equipment group 100 which has not yet been processed, group quantity for this instance of equipment group 100 is determined in step 204. If there are no more instances of equipment group 100 to be processed, profit/loss for all instances of equipment group 100 is calculated in step 218 by adding together the profit/loss for each instance of representative equipment group 100 into which equipment was categorized in step 202.

[0037] Referring now to FIG. 3, a plurality of instances of representative equipment group 100 are shown, each having respective instances of default data values 102 and study data values 104. Although five instances of equipment group 100 are shown in FIG. 3, by way of example, as many instances of representative equipment group 100 as there are known types of electronic equipment may be defined.

[0038] Demanufacturing price quote processor 300 calculates a profit/loss for processing a given lot of equipment according to the method steps described hereinabove with reference to FIG. 2.

[0039] In one example, demanufacturing price quote processor 300 may be a spreadsheet program running on a personal computer or workstation, however processor 300 may be any type of hardware, software, or a combination of hardware and software. Any kind of computer/server system(s), or other apparatus, such as special purpose hardware or a circuit module, adapted for carrying out the methods described herein, is suited.

[0040] Demanufacturing price quote processor 300 incorporates pricing contingency 302 into the profit/loss for processing the lot of equipment which may serve to reduce financial risk associated with the price quote being generated. If processor 300 has calculated a profit, the profit is reduced by a pre-determined amount, in one example 20%. If processor 300 has calculated a loss, the loss is increased by a pre-determined amount, in one example 20%.

[0041] Demanufacturing price quote processor 300 also incorporates profit 304 into the profit/loss for processing the lot of equipment to produce demanufacturing price quote 306. Incorporating profit 304 into price quote 306 may serve to further reduce financial risk associated with price quote 306.

[0042] As indicated hereinabove, it should be understood that the present invention can be realized in hardware, software, or a combination of hardware and software. Any kind of computer/server system(s)or other apparatus adapted for carrying out the methods described hereinis suited. A typical combination of hardware and software could be a general purpose computer system with a computer program that, when loaded and executed, carries out the respective methods described herein. Alternatively, a specific use computer, containing specialized hardware for carrying out one or more of the functional tasks of the invention, could be utilized. The present invention can also be embedded in a computer program product, which comprises all the respective features enabling the implementation of the methods described herein, and whichwhen loaded in a computer systemis able to carry out these methods. Computer program, software program, program, or software, in the present context mean any expression, in any language, code or notation, of a set of instructions intended to cause a system having an information processing capability to perform a particular function either directly or after either or both of the following: (a) conversion to another language, code or notation; and/or (b) reproduction in a different material form.

[0043] While there have been shown and described what are at present the preferred embodiments of the invention, it will be obvious to those skilled in the art that various changes and modifications may be made therein without departing from the scope of the invention as defined by the appended claims.