Important Questions and Answers: Replacement And Maintenance Analysis

 REPLACEMENT AND MAINTENANCE ANALYSIS

26.                        What is future worth analysis?

ü Net future worth measures the surplus at time period other then 0.

ü Future worth analysis is particularly useful in an investment situation where we need to compute the equivalent worth of a project at the end of its investment period.

27.                        What is annual equivalent method?

The criterion provide a basis for measuring investment worth by determining equal payments on an annual basis is called annual equivalent method.

28.                        What is Replacement analysis?

ü Replacement analysis involves the Replacement of existing obsolete or worn-out assets in order to avoid failure in operations.

ü The problems often faced by management of various industries are whether to replace equipment or to continue to use existing equipment, and when existing equipment should be replaced with efficient equipment.

ü This class of decision analysis is known as replacement analysis.

29.                        What is mean by gradual failure?

ü Gradual failure is progressive in nature.

ü It can be depicted in machine equipment, which is gradually depreciating or deteriorating with the time resulting in very high operating and maintenance cost and/or decreased residual value.

ü It is easier to predict such type of failure and taking the corrective measures by providing a replacement policy for such machine equipment.

30.                        Define economic service life of an asset?

The economic service life of an asset is defined to be the period of useful life that minimizes the annual equivalent cost of owning and operating the asset.

31.                        What are the types of replacement problem?

(a) Replacement of assets that deteriorate with time (replacement due to gradual failure, or were and tear of the components of the machine).

This can be further classified in to the following types:

1. Determination of economic life an asset

2. Replacement of an asset with a new asset.

(b)Simple probabilistic model for assets which fails completely. (Replacement due to sudden failure).

32.                        Explain annual equivalent total cost.

Annual equivalent total cost of owning and operating an asset is a summation of the capital recovery cost (average first cost) and the annual equivalent operating cost of the asset.

33.            Name the types of maintenance.

ü Corrective or Breakdown maintenance.

ü Scheduled maintenance

ü Preventive maintenance and

ü Predictive maintenance.

34.            State the main causes of breakdown.

ü Failure to replace worn out parts

ü Lack of lubrication

ü Indifference towards minor faults

35.            State any two disadvantages of break down maintenance.

1.   Delays in production

2.   Faster plant deterioration

36.            Explain Predictive maintenance.

ü It is comparatively a newer maintenance technique.

ü Equipment conditions are measured periodically or on a continuous basis and this enable maintenance men to take a timely action such as equipment adjustments repair or overhaul.