@ladyhanabi 6 September 2020 more from that month

What to Consider in Replacing An Existing Equipment With A New & Reliable Item?

In every field of study, the use of machines have always been our partner to make our job easier and efficient. If you are considering of replacing your old and used equipment with a new one, you have to ponder the most common economic question which is “Do its benefits exceed its costs?” It is important to assess how feasible the alternative is as a replacement of the present one. Considering that the **present equipment** is a portable engine that could be utilized for **10,000 hours before failure occurs**, it **generates a rental income of Php 20,000** and the Php 5,000 is spent for the 5 outages, which is Php 1,000 per repair. Imagine the big difference with the performance of the new equipment which **offers 14,000 hours** (*40% greater than the present*) serviceability during operation, **Php 28,000 rental income** and Php 5,000 for the repair and maintenance of the equipment. Given that the new equipment offers 40% greater reliability in comparison with the existing one, most probably the item would be **expensive**, but it is advisable to invest in this new and developed item rather than opting for substandard equipment as **it will benefit you in the long run.**  The 40% increase in the Mean Time Between Failure (MTBF) during operation only means that, the new equipment offers higher maximum uptime for the equipment to function. **Did you know that:** The **Mean Time Between Failure** or MTBF is the metric use to measure the time from the *first failure occurred* or the **Mean Time To Repair** (MTTR) plus the *total time it would take for the next part to fail* or the **Mean Time To Fail** (MTTF). Another thing to ponder is: **"How it might be feasible in an Engineering Economic Analysis to consider this situation in terms of the monetary unit?"** It is also crucial to note that high MTBF will only affect for **unexpected maintenance**, but normal maintenance schedule has still to be done. In this case, if the equipment has 5 planned maintenance schedules, it would cost Php 5,000 and if there were at most 2 unexpected outage incidents, it would cost Php 2,000. Being aware of the planned downtime of the equipment is necessary to conduct a regular maintenance which will help to avoid unplanned downtime. The greater reliability of the new piece of equipment the longer serviceability.  To put it in simple terms, the new equipment offers higher efficiency and usability in the operation. Therefore, it is **feasible** to consider the reliability of the equipment in an **engineering economic analysis** to *assess the unexpected maintenance of the equipment* since it is **widely neglected.**  How's that for an Intro to Engineering Economic Analysis? Did you learn something? Comment your thoughts below. Have heard about the Learner's Community? Its a community where you can share what you've learned, it may be from school or from work. https://read.cash/c/learners-community-b5b5 Hope to learn from you. Let's grow together.