When to repair a machine and when to replace it?
This is one of those rare examples where a machine’s value is independent of its working state. Whereas a breakdown takes away from a machine’s value, repair should add it back. However, recapturing that added value when it comes time to sell is constrained by the other options available to buyers in the market.
What’s the 50 percent rule for repair or replace?
When I first sat down to write about the “repair or replace” dilemma, in the back of my mind there was a vague notion that a simple, calculation-based method would be the ultimate solution. I had heard of the 50% Rule and thought that it (or something like it) would be the obvious centerpiece of the decision-making process.
What are the pros and cons of repair and replacement?
Both repair and replacement have a long list of pros and cons associated with them. Depending on the circumstances, the controlling factor that ultimately drives your decision can vary widely. Can a formula take into account all of this complexity, and spit out the correct answer?
What’s the difference between a breakdown and a repair?
Functional or not, this car is worth about the same. This is one of those rare examples where a machine’s value is independent of its working state. Whereas a breakdown takes away from a machine’s value, repair should add it back.
Which is better a repair or a replacement?
Consider this when deciding if repair or replacement is better in your situation. Keep in mind, however, that repairing often takes less time than replacing a machine. Replacing involves waiting for the replacement to arrive, installation, new training, and more.
This is one of those rare examples where a machine’s value is independent of its working state. Whereas a breakdown takes away from a machine’s value, repair should add it back. However, recapturing that added value when it comes time to sell is constrained by the other options available to buyers in the market.
When I first sat down to write about the “repair or replace” dilemma, in the back of my mind there was a vague notion that a simple, calculation-based method would be the ultimate solution. I had heard of the 50% Rule and thought that it (or something like it) would be the obvious centerpiece of the decision-making process.
What makes a decision to repair or replace equipment?
With productivity plummeting, your decision will likely be made from an emotional standpoint, rather than solid data to support your decision. Without a plan in place, your only concern will be getting your production back online as quickly as possible.
