It is very important as well as necessary that older equipment and items like refrigerators, lights, any kind of industrialgadgets, heaters and other objects are replaced in an old plant. As every item have a designated performance time (maybe in months or years or even in hours) for a certain number of operations, this replacement is required.
For example, a manufacturer knows that when the production of a certain product like heater has a warranty period of 6 years.That equipment (heater) will provide its user that desired level of efficiency. He also knows that the chances of breakdown will be minimalin those years.
In the same way, lights (tubelights or bulbs) are created to be operated on a certain number of on and offs. It may be 10,000 times or more than the estimated number.
But after its performance period comes to an end after a certain number of operations, replacement of all of these becomes necessary. There are also certain reasons why these equipment or machinery are required to be replaced. Few of the important reasons are:
4.With an improved technology over the years, organisations have better access to excellent products which are easy to use and utilises less power to function.Although these machineriesare providing the organisations witha fruitful result, it is also being counted as a reason for degeneration.
The reason for equipment replacement is not because of its performance level which is designed to a certain standard. The main reason for its substitution is the purchase of new equipment which is capable of a higher level of performance.
One should keep in mind that all the decisions involving in equipment replacement are based on high financial cost. There are various factors on whom the financial decisions rests. Some of the factors are like,
Few assumptions are required to be made by the management before they make any replacement decision. Some of these decisions are,