How to set up and operate a successful computer refurbishment centre in Africa - Executive Summary

Submitted by Editor on 1 November, 2004 - 17:37.
Tapping the potential of refurbished computers for Africa

More Africans need to get their hands on computers in order for African countries to tap the potential of information and communications technology (ICT) to improve lives. But the price of new computers puts them beyond the reach of most organisations and individuals in Africa. And the overall lack of technical skills also limits the widespread use of computers across the continent. Locally owned computer refurbishment centres offer some promise to address these issues. But establishing such a business in an African setting may call for more than just a viable refurbishment operation: everybody wins when a related social purpose is embedded in the business plan. When used equipment is donated to refurbishment centres it helps keep costs down, while at the same time solving problems for big companies that have social corporate responsibility obligations and which increasingly face environmental mandates on hardware disposal.

But there are only a few successful computer refurbishment centres in Africa at present, and very little is documented about their experiences for others to learn from. How to Set Up and Operate a Successful Computer Refurbishment Centre in Africa: A Planning and Management Guide is the result of a study undertaken by bridges.org in early 2004, which examined the methods and strategies of the computer refurbishment industry, focusing on Africa. This guide describes the steps involved in opening a computer refurbishment centre in Africa and managing it into productivity. It is intended to distill best practices and provide information on proven methods that could be replicated in refurbishment centres across the continent.

Overview of the computer refurbishment industry

A computer refurbishment company specialises in sourcing second-hand computer equipment, and cleaning, testing, repairing, and assembling it for resale. Some refurbishment companies operate strictly on a commercial basis, using large volumes and economies of scale to derive profit from resale. Others integrate a social purpose into their approach, by using the labour-intensive refurbishment process as a training opportunity through which inexperienced volunteers exchange their time for basic technical training. Refurbishment businesses can be positioned merely as vendors of hardware, or designed to deliver a set of services in concert with computer provision, including pre-sales consultation and needs assessment, and after-sales technical support and training. By providing support and skills training, they can help ensure that clients come to rely upon ICT as a tool that can enhance productivity and communication.

The composition and purpose of refurbishment operations differ widely around the world. Globally, the market tends to be influenced by the need -- or perceived need -- among corporate users for newer, faster computers. When corporations renew their computer equipment, large quantities of used machines enter the resale market. Other buyers, motivated by lower prices and what they see as a better return on investment, purchase those used items. This cycle of technology exchange drives the global trade in used computers. In Africa, additional factors drive the market. Because so many computer users lack experience, organisations currently providing refurbished computer in Africa assume a greater responsibility for ensuring their clients use ICT productively. Therefore, consultation and technical support are as much a part of a refurbishment centre's value proposition as are its affordable computers.

Although the global and African refurbishment markets differ in size and demand, the fundamental economics remain the same: costs fall as production scale rises. African computer refurbishment centres can achieve economies of scale by either centralising production or forming a consortium with others to increase collective buying power. But to reap the benefits of large-scale production, effective management processes are needed, and in Africa that means quality in both production and service.

PART I. ORGANISATION AND MANAGEMENT OF A COMPUTER REFURBISHMENT CENTRE IN AFRICA

Outlook on African computer refurbishment centres

There are a number of constraints to the viability of refurbishment operations in Africa. Existing African refurbishment operations tend to lack the appropriate information systems and documented procedures to operate efficiently at large production volumes while maintaining service quality. There are two models for a computer refurbishment centre that are best suited to the African market: centralised refurbishment with distributed support, and purchasing consortium.

Business drivers
Defining a centre's market position, measuring the costs of service provision, and assessing demand to calculate the affordability of its products, are three key business drivers that determine the financial sustainability of a centre. An African computer refurbishment centre can position itself in three main ways: as a service provider to government or donors; enabler of small-scale individualised donations; or provider to local small enterprises, community service organisations and the public at large. Key cost drivers for computers sourced internationally include the costs of delivery, parts and peripherals added to computers, as well as sourcing and installing legally obtained operating systems and applications. The operating costs of the centre, including its Internet connectivity, utilities, labour and other kinds of overhead must also be recouped through product and service pricing in order to sustain the centre over the long term. The demand drivers affect customers' likelihood of purchasing equipment, including measurable factors such as an item's price, the availability of capital and the cost of borrowing, as well as unquantifiable factors, such as personal taste, interest and priorities.

Good management of a refurbishment centre also depends on the ability to design, document and implement standard procedures for carrying out fundamental tasks. A focus on process orientation and documentation formalises knowledge and enables a centre to plan for controlled growth. It ensures that staff members have access to the instructions and procedures necessary to carry out their work; distributes knowledge throughout the work environment; and alleviates demand and time pressures on more experienced workers.

Supply management
Establishing a supply chain and managing it well are two activities that are essential to computer refurbishment centres. Used computers form a part of a large and competitive market that accommodates several different kinds of suppliers. At the same time, the diversity of that market requires a lot of knowledge and familiarity with current pricing in order for purchasing managers to maximise a centre's spending power. The off-lease computer market is also volatile -- prices and quality can change quickly. Ultimately, the procurement practices of local and international companies and governments determine the quality of used computer supplies. As a consequence, the long-term focus of a supply manager should concern the establishment of supplier relationships that can help insure a centre against price swings, fluctuations in availability and demand and the high overheads of the bidding and tendering process. Being able to articulate a centre's needs is central to a centre's ability to forge partnerships with hardware suppliers. It may take some effort and a few well-handled transactions in order to cultivate willing partners, but, in time, it will mean that computers are cheaper to source, that the supply of computers is more integrated into the operation, and that the boom-and-bust cycle of activity in the workshop is eliminated.

Shipping and customs
Shipping computers for import can incur considerable cost and delay, but good preparation and good relationships with suppliers, freight forwarders and customs agencies can reduce some of the frustrations involved. Because shipping can place such strain on an organisation, both in the time that it takes to carry out the transactions and gather necessary documentation and in the financial resources required, it is a job best left to those most experienced. Centres must still carry out much of the work themselves, particularly when assessing the initial feasibility of importing computer equipment into a country. At the same time, the interest, profile and public sentiment about computers and ICT issues may also give the centre a chance to create a network of supportive partners within existing government and industry institutions. That network of goodwill may be able to ease the task of ICT import.

Product profiles
Usability is a consideration central to the design of products. It is important for a centre to produce platforms that its users -- especially novices -- can learn to use quickly and well. Since responsiveness is key to a user-oriented product specification, computers should be fitted with more RAM and higher processor speeds as long as the costs of these extra features keep prices affordable. Since product design must also be matched to the computer's intended use, the products must provide the applications that its users want and need. Standalone computers are suitable for home or office use, where a limited number of people use the computer. These machines should be outfitted with productivity applications, an Internet browser and an email client. Centres may also add other software such as an accounting package, graphics tool or database. Computer labs can be installed with machines that run independently of each other or be equipped with a server and several diskless clients. In each case, the computers' operating system must feature true multi-user functionality in order to protect data and streamline the task of administration. To promote sustainable use of the computers and take measures to ensure their longevity, computer refurbishment centres can include more than hardware and software in their product offerings. While a consideration of the operating system and applications is key to the product, just as important are issues of security and data protection. These safeguards lay the groundwork for a recipient's sustainable use of the PC equipment.

Inventory
An inventory should be able to track volumes of equipment over long periods of time and several locations. By integrating inventory with workflow, it is possible to keep an eye on how many computers are available for installation, and to match future demand with current supply. But most of all, inventory management is a mechanism designed to keep control over a process that comprises many different elements and locations. The different features of various inventory solutions will suit computer refurbishment centres at different stages in their development. The early appeal of a spreadsheet's ease of use may fade as volumes in the workshop increase. Likewise, an evaluation or audit may force a centre to be able to produce and track its stock in greater detail, necessitating the migration to a database system. Centres should invest time and effort into finding an inventory that suits their workshop conditions, workflow, and local practicalities.

Staffing
A computer refurbishment centre has complex staffing needs. At the outset, it requires the experience and involvement of a few committed organisers that articulate the vision and direction of the centre. In the early stages, it requires the concentrated effort of a small team of technical and nontechnical staff to pilot the centre through the complicated set-up phase. And to flourish in the long term, it requires the efforts of a dynamic team of skilled technicians. The need for skilled labour creates an opportunity to develop the skills of a workforce in-house. By initiating a volunteer program under which enthusiastic trainees exchange their labour for skills, the centre can meet its labour force needs and nurture the interests of members of the communities in which it operates. This arrangement demands a workshop take several steps to ensure that both volunteers and the staff see benefits. It requires the removal of barriers to volunteer eligibility, the provision of structured work plans as well as the necessary tools, documentation and work structure that foster skills transfer. This should be combined with a way to monitor the progress of both volunteers' skills acquisition and the production outputs of the workshop. A rotating, team-oriented approach is one method of organising work activities to maximise the opportunities for skill sharing. While testing programmes can enable a centre to monitor the pace of skills acquisition, orienting a centre's training programme toward the attainment of a recognised qualification can improve trainees' employment prospects in the ICT job market at large.

Increasing impact and ensuring sustainability
Computer refurbishment centres have a responsibility to raise awareness about ICT integration issues and to promote ways that computer ownership can bring concrete benefits to organisations and businesses that use ICT. As a consequence, the centre should strive to be regarded not merely as a supplier of computers, but as a place that can help people determine their needs and shape the context within which computers can become effective, productive tools. Readiness and planning tools also help centres remain productive. Since demand for computers can frequently outstrip available supply, a centre providing services to large numbers of clients will inevitably receive more requests for computers than it can meet. If it is focused on social service, it must develop a method of assessing the eligibility of applicants and of ranking the priority of eligible clients. The development of standard ranking tools helps to drive decision-making; if the tool is transparently applied, the method can also defuse criticisms of bias and favouritism in a centre's decisions. Given its role in the community as a trainer of staff and its profile as a dispenser of valuable and often-coveted equipment, a centre's choice to advise its clients as well as provide them with computers will likely bring longer-term benefits to the centre and to its relationship to the community in which it operates. Computer refurbishment centre managers wary of the cost implications of administering a readiness and needs assessment programme may have recourse to follow an emerging trend in the ICT sector in some developed countries and subcontract specialty needs and readiness assessments to a third party. Centres may also be able to levy a service fee for these consulting services, or embed a charge into a service contract.

Technical support
To realise the benefits of ICT, good technical support is key. The presence of technical support engenders trust between a centre and prospective customers who may worry that their own inexperience should discourage them from purchasing a computer and coming to rely upon it. Given the potentially high frequency of problems the combination of new users, older hardware and a harsh environment may produce, the technical support arm of a centre's customer relations service must receive considerable attention. A centre should implement both remote and on-site support systems, carried out with specifically tasked staff and supported by management software. Support systems should be established with a view to training and preparing clients to support themselves as much as possible.

Proactive customer support measures such as scheduled service calls and activity monitoring can help bolster a relationship with a client and improve both support levels and quality. Of all measures to improve customer service, the definition, communication and adherence to standards of response and resolution time is paramount.

Facilities and infrastructure
Computer refurbishment centres require three main features in their facilities: size sufficient to store equipment, carry out refurbishment and conduct business; stable electricity to support the infrastructure of the operation; and a form of Internet connectivity to enable communication with suppliers and provide a method for sourcing software. At the same time, facilities can be costly to modify, expensive to furnish and difficult to find. A centre should turn as much as possible to its partners and other possible donors in order to find premises and equipment as cheaply as possible. While the features of a given facility are important considerations, it is also important to find a location for the centre that gives access to staff and the general public.

Partnerships
Since hardware and technical support comprise only a small part of the broad-based initiatives required to ensure sustainable ICT expansion in Africa, partnerships are key to a centre's success. Foremost among these partnerships is the one the centre develops with its clients, who can give valuable feedback to the centre about its products and services. Given the priority of controlling ongoing costs, refurbishment centres should seek to partner with local telecommunications providers with the purpose of driving down connectivity costs to affordable levels. Given the importance of end-user skill development, a partnership with a training agency can help to satisfy the needs of a centre's user base, including both basic instruction to learn applications and interfaces, as well as specialised training to solve technical problems common to the products the centre distributes. Given the position of government as a source of valuable information, participation with government agencies is vital if long-term programmes are to be planned effectively. Given the responsibility of a centre to dispose of end-of-life equipment responsibly, a partnership with a reputable recycler is also necessary. Finally, given the involvement of SchoolNet Africa in computer supply and service issues in concert with its One Million Computers For Africa initiative, managers should endeavour to familiarise themselves with this programme.

PART II. TECHNICAL PROCEDURES FOR COMPUTER REFURBISHMENT

Efficient computer refurbishment centres require formalised internal technical procedures to produce high-quality products consistently. Supplying a refurbished computer to a client involves five basic steps that will restore a computer to a working state, fit for its next owner:

Cleaning. Before the computers move into the workshop, the cases should be removed for cleaning. Using a vacuum, compressed air or high intensity blower, dust and debris should be extracted from the interior of the computer case. Cases should be cleaned with a light detergent and stripped of any badges, decals or other material that the manufacturer or former owners applied. See the section entitled "Cleaning" for more detail.

Testing. Software is used to identify faults in components. All equipment should be tested before it is used in production in order to eliminate the cost of warehousing material that has no value, and to reduce the rate of replacement for equipment that fails after it has been given to a user.

Assembly, software installation and configuration. Tested equipment is assembled according to a set of specifications defined in the product profile. Technicians should follow a standard procedure for assembling the computers. Once the computers have been assembled, an operating system and applications are installed on the hard drive. Then drivers and any hardware are installed or added to the configuration. Finally, networking is configured and applications are installed. In an environment where large volumes of computers are loaded with software, centres can use a method that installs software on large numbers of computers simultaneously in order to save time and effort. Each of these steps is outlined in the "Assembly, software installation and configuration" section, which describes the steps in more detail and gives instructions and links to sample documentation and reference material.

Quality assurance testing. The hardware configuration is tested using a program called a burn-in test, which stresses the hardware. A technician then verifies that the product complies with quality standards against a checklist. See the section entitled "Quality assurance testing" for more detail.

Packing, shipment and installation. The tested computers are packed together with other necessary equipment and installed in the new location. See the section entitled "Rollout and installation" for more detail.


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