How do you decide between repairing or replacing a machine?

As machines age, the repairs they need will steadily increase in both cost and severity. This rule states that there is no need to replace the machine until the cost of repairs exceeds more than half the cost of replacing it. Many companies use a 50-60 percent rule to make repair or replacement decisions. If the repair cost exceeds 50-60 percent of the cost of a new device, it is replaced.

And, when it comes to device performance (accuracy, deviation, repeatability, etc.), each installation will most likely have a policy that dictates this relationship based on mythology or practical experience. In general, it's wise to repair newer industrial equipment and replace older ones. The logic behind this statement is that older machines tend to require frequent repairs. It makes financial sense to repair newer machines, since a substantial amount of money was recently spent on their purchase.

A newer machine is more likely to be able to provide several years of service than an older one. When in doubt, consider whether advances in technology will provide greater efficiency or specific features that generate cost savings. If new machines offer these benefits and it seems that these improvements will have a positive impact on the company's bottom line, the best option is to replace them. To decide if it's time to repair or replace an asset, you must compare the current value of the asset with the cost of repair.

Simply, when the cost of the repair is lower than the value of that equipment, you must repair it. When the cost of repair is higher than the value of the asset, you must replace it. It's natural for us to want new things. From the latest gossip to the latest health trends and the most up-to-date devices, it's almost always perceived that what's new is better.

New things are also considered convenient, and when factory equipment isn't working properly, it may seem faster and less annoying to simply replace a worn part instead of repairing it. However, replacing parts may not be the right decision for your company. Data has shown, in the analysis of repair versus replacement costs, that repaired or redesigned components can save 50% compared to the cost of buying new ones. These are some of the reasons why repairing your industrial parts could result in long-term cost savings for your maintenance operations.

The first consideration when deciding whether to replace or repair is the nature of the machinery and its importance. For example, backup power generators are critical when network power is lost. Following a preventive maintenance program and performing minor generator repairs as needed significantly reduces the risk of total machine failure at a critical time. Maintaining repairs through regular inspections is effective and, if a problem is detected, can be resolved immediately, preventing unforeseen downtime.

Evolving standards in part repair can support the shift from reactive to predictive maintenance practices; updated technologies and root cause analysis techniques can measure the condition of equipment in real time, and the repair process uses these instruments to determine why something failed and how to predict the future failure elsewhere. There may also be some historical repair experience among technicians that may shed some light on what is needed to repair the device. If the device is analog or not intelligent, reviewing the device's maintenance history and repair logs can be a good indicator of the device's status and repairability. Generally, if the repair cost is 50% or less of the replacement cost and the equipment lifecycle expiration is 50% or less of the expected life cycle, the equipment will be repaired.

You are now ready to compare the cost of the repair with the current (remaining) value of the asset to decide if it is time to repair or replace it. .

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