Manufacturers: Pre-Purchase Guide for Equipment

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A recent industry survey highlighted that small and medium-sized manufacturers are increasingly cautious about their equipment purchases. They prioritize high-quality communication devices and essential tools, but they may compromise when it comes to manufacturing equipment. Whether investing in a computer for administrative tasks or a welding machine for the production line, understanding the risks associated with new equipment purchases is vital. Poor decisions can lead to wasted resources and potential safety or cybersecurity issues.

Before acquiring a piece of equipment—be it a CNC machine, a robotic arm, or a specialized tool—there are critical factors to consider: How will it be financed? What are the safety or cybersecurity implications? What does maintenance entail? And what is the expected lifespan of the equipment?

As options can be overwhelming, it's easy to overlook significant risks associated with your choices. NIST MEP has developed a pre-purchase guide to assist in this decision-making process.

The following questions will help you make informed decisions while considering safety, cybersecurity, and other risks that could affect the long-term value of your purchase, ultimately reducing buyer’s remorse.
The questions are organized according to the equipment lifecycle, covering aspects such as financing, installation, use, maintenance, and disposal. Feel free to add questions relevant to your specific situation, as this guide is designed to assist, not restrict, your decision-making process.
If you encounter questions you can’t answer, remember that uncertainty can lead to risk. Your local MEP Center may offer assistance in identifying additional concerns.

1. Will you lease or buy?

Leasing has become a popular option for high-tech equipment because it mitigates obsolescence risks. However, it often ends up being costlier in the long term, and users might lose control over updates. Regardless of your choice, review contracts to ensure they protect you from security, quality, and compatibility issues.

2. Where will it be located?

Documentation often outlines where equipment should be situated, but you may need to factor in specific business requirements such as environmental protections.

• Where is the optimal location?
• What safety protocols are required?
• What security measures need to be in place?
• What utilities will be required for its operation?

3. Does it require ancillary equipment?

One purchase can often lead to the need for additional purchases. Many supplemental tools protect either users or equipment from environmental hazards.

• Are there safety devices needed for installation, operation, or maintenance (e.g., safety sensors, light curtains, fire suppression equipment, PPE)?
• Are there environmental protections needed, such as protections against power fluctuations or moisture-related damage?

4. What connections does it have?

Connected equipment poses a cybersecurity risk whenever it communicates with other devices, giving attackers potential access points.

• Does the equipment include USB ports, network adaptors, or other connection interfaces?
  • How will these connections be secured?
• If data is required for operation, how does the equipment receive, verify, and safeguard this data?

5. Who will use it?

Human factors can pose significant safety and security risks.

• Will users need training to operate the equipment safely?
  • Who will provide such training?
• What security measures will limit access to authorized users only (for use, maintenance, or setting adjustments)? Ensure any login processes adhere to security best practices, like two-factor authentication, without overly burdening employees.

6. How often will it be used?

Infrequent equipment use can lead to increased cybersecurity and reliability risks, undermining overall effectiveness.

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7. What are the maintenance expectations?

Maintenance is crucial for equipment longevity and performance. Inadequate maintenance may result in unexpected challenges, including compatibility and cybersecurity complications that could incur unforeseen costs.

• What is the expected frequency of maintenance?
  • What is the anticipated mean-time-to-failure?
  • What downtime should be expected?
• How can malfunctions be detected (e.g., indicator lights, quality control measures)?
• Is there a contingency plan for equipment failure?
• What does the warranty or service contract cover?
• In cases where safety or security is compromised, how will accountability be determined?
  • Who holds liability?
• Are there maintenance tasks that can be handled internally versus those requiring external services?
• Can the equipment be upgraded incrementally to reduce financial strain?
• How will the effectiveness of maintenance efforts be assessed? Did changes lead to reduced quality? Whenever possible, pilot maintenance solutions or gather feedback from others before implementing changes.
• If maintenance becomes excessively burdensome or fails to improve functionality, what are your options for replacement or refunds?

8. What does the equipment's end-of-life look like?

The lifespan of equipment can vary widely; some are built to last for decades, while others are short-lived. Preparing for an asset's end-of-life is essential to avert production downtime and mitigate cybersecurity concerns.

• If the expected lifespan is shorter than the planned usage timeframe, it could elevate cybersecurity and reliability risks as the equipment becomes obsolete.
• Are there hazardous materials or sensitive data that require consideration during disposal?

Next Steps

After addressing these questions, weigh whether to proceed with the purchase. If you decide to buy, utilize your findings to ensure the equipment is properly installed and configured to meet your operational standards for safety, efficiency, and security.

Your local MEP Center is equipped with resources that can help you make informed decisions, addressing safety, quality, and efficiency concerns with any equipment you purchase or lease.

This article serves as a resource for equipment evaluation and selection. Ultimately, any decisions made by the reader based on this content remain the reader’s responsibility; NIST MEP is not accountable for any consequences that arise from these decisions.

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