Individual Replacement Policy
In this policy, there is a specific replacement time of an equipment irrespective of its break down which is depicted by ‘t’. If any user knows the time period regardingthe utilisation of the equipment and also itsprecise service period, the calculation can be made easily. This policy is very convenient in calculating a bearing’s replacement time. It does not matter if stops functioning or not.
This replacement of bearing is very important as its failure can cause severe damage to a machine. In fact, the repair cost of the machinery will be much higher than the repair cost of a bearing. Production loss and loss of funds in case of equipment due to sudden failure can be avoided if one can find out ‘t’ which here is the ideal service life.
Although the previously issues can be avoidedwith this policy, but there is also a differentwastage chance. On the grounds of preventive measurement when few items are replaced on fixed interval, some of it may be left with residual life. On replacement, these goes waste which again is a fund loss type. Those items could have a relatively good performance life whose utility period is reduced due to its substitution with new equipment.
In case of individual replacement policy, the system is very simple. To make it clear, anexample of street lights are taken which needs to be replaced by city corporation. If this theory is used here, then the replacement of lights can be done immediately and simultaneously where the break down takes place. On adoption of this theory, unnecessary costing can be avoided for those lights with residual life.
Analysis of replacement cost for equipment which breaks down without any warning is close to the findings of theprobability of human mortality rate. It can also be compared to the claims of life or death of a policy holder by insurance companies.
The comparison of human life and death in respect to replacement theory is also apt. Here failure or break down is associated with mortality, whereas replacement or replacement theory is compared to birth.
Few assumptions are made to highlight these problems in relation to humans and equipment.
We have to find out the rate of failure of individual equipment in a system before a certain period. The motto of this is to reduce the level of replacement costing by finding out the ideal time when any equipment needs replacement.
The probability of any equipment’s break down is shown with the help of an equation which is highlighted between the time period ‘t’ and ‘(t – 1).
P = ( )
(t – 1) = time period
F (t) = number of surviving equipment
N = total number of equipment