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Maintenance Economics: Optimal Life Determination & Repair/Replacement Modelling
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Maintenance Economics: Optimal Life Determination & Repair/Replacement Modelling

2-Day Training Course: Learn Valuable Maintenance-Specific Financial Analysis Skills. Learn about the financial principles & the modelling techniques needed to assess optimal life of assets, equipment & components based on an integration of physical & theoretical condition assessments, analysis of operational context & economics

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Key Learning Objectives

  • Learn how to integrate management processes, tools and systems to support effective asset life management within ISO 5500X
  • Comprehend how the relationship between financial processes, business risk, equipment performance and condition impacts on equipment life determination
  • Understand how to model financials based on Net Present Value, to present realistic outcomes when submitting cost justifications
  • Learn how to approach the various modelling techniques to support specific outcomes
  • Become proficient at conducting life cycle and life cycle cost modelling
  • Learn how to best apply condition assessments to support life cycle management of your critical assets
  • Know when to apply the most appropriate analysis and modelling methodologies to present life cycle forecasts, maintenance activity selection and optimal life determination
  • Apply sensitivity analysis techniques to verify the robustness of your models
  • Realise the importance of data and information to support life cycle management, health, integrity and continual improvement

About the Course

The current economic climate focused on productivity and cost cutting is putting pressure on companies to submit robust justifications for investing in new capital. This expectation from asset owners and decision makers is now the norm where submissions have to be inclusive of verified condition, value proposition and risk determination.

To take advantage of productivity and cost savings, you must become better at managing the condition of equipment and analysing it effectively. A proficient maintenance manager needs to improve asset knowledge and then pro-actively manage and take control of asset life events.

This course teaches how to justify asset cost and investment decisions through economic analysis, and how to make quantitative assessments of condition and health risks.

The course will also bring into perspective the overall view on the management elements supporting and contributing to effective asset life management. These include the CMMS application, technical and financial asset registers, depreciation management, asset management plans, operational budgeting, condition assessment and much more.

This course is designed to bring all these elements together to demonstrate the practical applications of financial modelling and the correct application of modelling tools to support decision making, equipment productivity, life cycle and life cycle cost management.

Many case studies and exercises will be demonstrated to familiarise you on the practical application and of these tools and techniques when applied to new and ageing assets

Who Will Benefit

The course is ideally suited to enable asset owners, asset management and maintenance practitioners, engineering and reliability professionals, business planners and analysts to effectively make decisions about their assets.

Testimonials

“This method of presenting equipment status and conditioning is perfect as application for our critical and ageing assets”
Principal Asset Management, Rio Tinto Iron Ore

“We have been trying for 4 years to justify the replacement of these machines. We knew they were at end of life but could not present it effectively. This effective way of modelling has enabled us for the first time to present a sound business case for replacement which was accepted with minimum fuss”
Machine Specialist, Port Waratah Coal Services, Carrington Site stackers and reclaimers

Terms & Conditions

To read the training course terms and conditions read more here

Course Outline

INTRODUCTION TO ASSET MANAGEMENT AND ASSET LIFE CYCLE MANAGEMENT

  • Asset management and business performance
  • Asset management plans as mechanism to support asset life cycle management
  • Business processes supporting asset life cycle management

LIFE CYCLE DEFINITION AND APPLICATION

  • Life cycle phases and definition of asset life
  • Factors impacting on asset life
  • Failure behaviour and asset life
  • A risk based approach to focus on the right assets

NPV PROCESSING AND FINANCIAL PRINCIPLES APPLIED TO ASSET LIFE

  • Components of life cycle cost
  • Book value and depreciation policies
  • Depreciation policies

EXERCISES
Payback, Internal Rate of Return and Net Present Value

LIFE CYCLE COST MODELLING AND SIMULATION

  • Event base budgeting and zero base budgeting principles
  • Maintenance approaches

CASE STUDIES AND EXERCISES
Maintenance life cycle costs and budgeting

CONDITION ASSESSMENTS AND ASSET LIFE PROGRESSION

  • Maintenance and asset condition
  • Mechanisms to determine and assess asset condition
  • Relationship between asset condition and remaining life
  • Effective reporting on asset health and condition

MAINTENANCE TACTICS MODELLING

  • Define maintenance approaches to support maintenance decisions
  • Select the most appropriate maintenance approach to manage failure consequences

OPTIMAL LIFE DETERMINATION PRINCIPLES AND MODELLING

CASE STUDIES
— Repair/replacement modelling
— Life span scenario modelling

On-site & in-house training

Deliver this course how you want, where you want, when you want – and save up to 40%! 8+ employees seeking training on the same topic?

Talk to us about an on-site/in-house & customised solution.

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