Engineers typically make plant machinery’s economic replacement
decisions. Such decisions involve cost analysis, which allow determining when the
current machine is to be replaced with a new one. A manager’s job may be to suggest
when such analysis should be conducted, especially on older machines, and when
production changes occur.
Keywords: Floor plant machinery, machine replacement decisions, machine
maintenance, replacement analysis, MARR, minimum acceptable rate of return,
reliability, accessibility, cost of repairs, cost of maintenance, downtime, machine
retention cost, machine replacement cost, forecasting, cost forecasting.
