COURSE OVERVIEW:

Industrial managers are constantly faced with the dilemma of whether to invest in the repair of an aging asset or to replace it with modern technology. This course provides a rigorous decision-analysis framework for evaluating the technical and economic feasibility of these two competing options. It focuses on moving beyond "gut feel" to a quantitative approach that considers life cycle costs, reliability trends, and the strategic direction of the facility.

The scope of this training involves the integration of engineering assessment with financial modeling. Participants will learn how to conduct a "Health Check" on equipment to determine its remaining useful life and compare the total cost of ownership of a refurbished unit versus a new installation. The course delves into the complexities of "Sunk Costs," the impact of energy efficiency, and the risks associated with obsolescence that often make replacement the more viable long-term choice despite a higher initial price tag.

Coverage includes the application of Net Present Value (NPV) and Internal Rate of Return (IRR) to maintenance decisions, as well as technical factors such as maintainability and modularity. Attendees will explore case studies involving high-value assets like pumps, turbines, and control systems to understand the trade-offs between capital expenditure (CAPEX) and operational expenditure (OPEX). By the end of this course, participants will be able to present a professional "Business Case" that justifies the optimal path for any major plant component.

COURSE OBJECTIVES:

After completion of this course, the participants will be able to:

• Establish a standardized "Decision Matrix" for the repair vs. replace dilemma.
• Conduct a technical condition assessment to determine Remaining Useful Life (RUL).
• Calculate the Total Cost of Ownership (TCO) for both repair and replace options.
• Apply Net Present Value (NPV) to evaluate the time-value of maintenance money.
• Identify the "Economic Life" of an asset versus its "Physical Life."
• Evaluate the impact of energy efficiency gains offered by modern replacements.
• Analyze the risks of spare parts obsolescence for aging equipment.
• Perform a "Sensitivity Analysis" to account for uncertainty in repair estimates.
• Justify replacement based on "Safety and Environmental" risk profiles.
• Understand the tax implications and depreciation factors of CAPEX decisions.
• Utilize "Life Cycle Costing" (LCC) to support long-term asset strategies.
• Prepare a high-impact technical report for senior management approval.

TARGET AUDIENCE:

This course is designed for Plant Managers, Maintenance Engineers, Asset Managers, Finance Business Partners, Project Managers, and Procurement Specialists involved in capital planning and major overhauls.

TRAINING COURSE METHODOLOGY:

A highly interactive combination of lectures, discussion sessions, and case studies will be employed to maximize the transfer of information, knowledge, and experience. The course will be intensive, practical, and highly interactive. The sessions will start by raising the most relevant questions and motivating everybody to find the right answers. The attendants will also be encouraged to raise more of their questions and to share in developing the right answers using their analysis and experience. There will also be some indoor experiential activities to enhance the learning experience. Course material will be provided in PowerPoint, with necessary animations, learning videos, and general discussions.

The course participants shall be evaluated before, during, and at the end of the course.

COURSE CERTIFICATE:

National Consultant Centre for Training LLC (NCC) will issue an Attendance Certificate to all participants completing a minimum of 80% of the total attendance time requirement.