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Replacement of Assets which fails Suddenly

Asset failure can be costly for an organization, not only in terms of repair and maintenance costs but also in terms of lost productivity, downtime, and potential safety risks. To avoid the negative impacts of sudden asset failures, organizations can implement a preventive maintenance program, which includes regular inspections, maintenance, and repairs of the assets.

However, despite the best preventive maintenance efforts, some assets may fail suddenly and unexpectedly. In such cases, the organization needs to make a quick replacement decision to minimize the impact of the failure on its operations. Here are some approaches for the replacement of assets that fail suddenly:

Reactive replacement: This approach involves replacing the failed asset immediately after the failure occurs. The replacement decision is made based on the urgency of the situation and the availability of replacement options. This approach may result in higher costs and longer downtime, but it may be necessary in situations where the asset failure poses safety risks or causes significant production losses.

Redundancy replacement: This approach involves having a backup or redundant asset in place that can be activated immediately after the failure occurs. The replacement decision is made based on the availability of the backup asset and the criticality of the asset to the organization’s operations. This approach may result in higher capital costs but can help minimize downtime and production losses.

Risk-based replacement: This approach involves assessing the likelihood and consequences of asset failure and making replacement decisions based on the risk level. The replacement decision is made based on the expected cost of failure and the cost of replacement. This approach may involve balancing the costs of preventive maintenance, replacement, and downtime to minimize the overall costs and risks to the organization.

In practice, organizations may use a combination of these approaches to manage the risks and costs associated with sudden asset failures. The choice of the approach will depend on the organization’s specific context, the criticality of the asset, and the expected costs and benefits of each option.