When Is It Appropriate to Repair, Rebuild, or Replace Equipment?

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When is it appropriate to repair, rebuild, or replace equipment?

Every construction company faces significant equipment costs. Even the most durable heavy construction equipment will eventually fail due to hard operating conditions. Owners have choices if their equipment breaks.

They can often repair, rebuild, or replace any piece of machinery. We'll go over when to employ each of these tactics, as well as their benefits and drawbacks, in the sections below.

When should you repair your equipment?

Heating Services repairs are more cost-effective if you know the exact problem and get it repaired on time. Repairing a piece of equipment that is in good working order but isn't functional or safe to operate due to a single broken component might be a cost-effective and time-saving solution.

When compared to alternative options, performing repairs is usually the cheapest option. If you're concerned about the costs of more significant maintenance or equipment replacement, it's a good option.

Repairs are often the best option in any circumstance when downtime or cost is a big factor.

However, most fixes will be limited in scope. While a rebuild or replacement can increase a machine's fuel efficiency or performance, repairs normally only get it back up and running.

A repair may only buy you some time in such cases. If the situation is severe enough, damaged or non-functional equipment will need to be rebuilt or replaced.
While you Repair your equipment yourself, it may be the best option depending on how costly downtime will be, but you should be aware that this is only a temporary solution.
Check the maintenance records and consult with the maintenance team to determine how long the machine will function following a repair.

Replacement components may be difficult or hard to come by, depending on the age of the apparatus. Manufacturers don't make replacement parts indefinitely, so you might find that certain components are unavailable. In this instance, a complete replacement will almost certainly be the best option.

When Should You Replace Your Equipment?

Because of the high expense, a complete replacement is usually the final option you consider. However, you should keep this in mind because repairs and rebuilds aren't always feasible.

It's virtually always a smart idea to replace equipment in certain circumstances. You should consider replacing the broken machine if it is obsolete, low-quality, or no longer maintained by the manufacturer.

You should also think about the benefits that new equipment can bring. A replacement might also be an upgrade if older machinery is less efficient than newer versions, requires specialized training, or puts your organization at danger of not fulfilling rules and safety standards.

For example, many contemporary versions of heavy equipment are more fuel-efficient. When comparing the cost of a replacement against a repair or rebuild, keep diesel savings in mind.

Replacement will almost always result in the highest capital expenditure of the three options, as purchasing new equipment is more expensive than repairing or replacing.

You'll have to pay taxes on the entire cost of new machinery, whereas a repair or rebuild may not. A new warranty will almost certainly be necessary.

Downtime can be a significant problem. Repairing a piece of equipment is often the fastest option to bring it back online. You'll have to wait for the replacement machine to be bought, shipped, and delivered before you can resume full productivity.

Reasons to repair/replace/rebuild

A maintenance manager's biggest nightmare is having to choose between fixing or replacing equipment. Unfortunately, there isn't always a simple formula to follow. Before making your ultimate decision, you must consider a number of variables.

We've divided these factors into three categories for you to consider: costs, efficiency, and equipment age.

1. Efficiency

The equipment's age brings up a sensitive topic: the efficiency of ancient machines, or the lack thereof. Older machines not only have longer downtime, but they also have a lower OEE than newer machines.

When considering whether to repair or replace a piece of equipment, you should thoroughly analyze this measure (ideally using a decent CMMS).

2. Costs

The price is the first thing to consider. It's simple to calculate the cost of a new piece of equipment, but evaluating the costs of fixing an existing asset is a different story.

You must include all repair expenses, including components, labor, potential losses due to downtime throughout the process, potential losses during the test period and machine calibration, and finally waste collection and removal.

Make an estimate of the cost of maintaining a new piece of equipment vs an old one based on these figures. If the entire cost of repairs exceeds 50% of the cost of a new piece of equipment, it's probably advisable to replace it.

It's occasionally worth risking a little more in the near term to avoid the maintenance costs of older equipment.

3. Age of the equipment

This third point, about maintenance expenses and frequent failures, leads us to another critical factor: the equipment's age. Machines, unlike excellent wine, don't improve with age. With the passage of time, finding spare parts becomes increasingly difficult, and in some cases, impossible.

Preventive and corrective maintenance expenditures are higher for equipment that is nearing the end of its useful life.

As a result, before deciding to repair it, go through all of the information you've gathered on how it works! It could be time to say your final goodbyes to that dependable light fixture you bought years ago.

The Best Ways to Handle Broken Equipment

You have a few options if your equipment breaks down. You can get it back up and running with repairs and rebuilds rather than replacing it. These choices, however, may not be available if a manufacturer has stopped producing new components.

Replacing equipment is another option, and it usually means upgrading to more current or fuel-efficient models. A replacement, on the other hand, will almost always be more expensive than a rebuild or repair, though there are ways to cut costs.