Elaboration of the equipment replacement terms taking into account wear and tear and obsolescence

• Main Authors: Inna Lapkina, Mykola Malaksiano
• Format: Article
• Language: English
• Published: PC Technology Center 2018-06-01
• Series: Eastern-European Journal of Enterprise Technologies
• Subjects: equipment replacement; equipment performance indicators optimization; equivalent annual cost; multi-criteria evaluation
• Online Access: http://journals.uran.ua/eejet/article/view/133690

The optimum terms of replacement of equipment subject to wear and tear and obsolescence with more advanced equipment with similar performance are investigated. To this end, the methodology of multi-criteria evaluation of equipment performance indicators when switching to a new type of equipment is proposed. The values of EAC (Equivalent Annual Cost), calculated for several equipment replacement cycles and for an infinite number of cycles are investigated. Estimates of the dispersion degree of EAC values depending on the service life of old and new equipment under conditions when the dynamics of operating costs is subject to random fluctuations are obtained. For this, covariance functions of random processes that describe the dynamics of the operating costs of old and new equipment were used. On the basis of covariance functions, estimates of the functions of standard deviations of EAC values are obtained. Using the obtained estimate of the degree of dispersion of equipment performance indicators, the multi-criteria optimization problem was investigated. This approach is of great practical interest, because for many enterprises, not only the average expected level of equipment performance indicators, but also the dispersion degree of the values of these indicators is of great importance. As a result of the research, the technique for planning the equipment replacement terms was developed. The proposed methodology allows justifying the terms of replacement of old equipment with new equipment, taking into account both the average expected EAC values and their level of fluctuations. The studies have shown that due to choosing the equipment renewal terms, it is possible to significantly reduce the degree of dispersion of equipment performance indicators, slightly sacrificing the average expected value.