Extending Asset Life with Condition Monitoring

To understand how to defer asset renewal related expenditure, it is worthwhile exploring the underlying drivers for this class of investment.

In short, the business case to replace an asset is positive when the cost of renewal is less than the future liability of downside risk associated with retaining the asset in service. So therefore, it may be possible to defer the requirement for investment if these negative consequences or downside risks can be managed to tolerable levels.

This article discusses:

• Changing the Probability of Failure
• Deferring Replacement Investment
• Major Cause of Failure
• Cost and Availability of Labour
• Application of Criticality Factors

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