COURSE OVERVIEW:

The core meaning of this course is the financial and technical optimization of the asset lifecycle, specifically answering the question: "When does it cost more to keep the machine than to replace it?" Maintenance and replacement decisions are frequently made based on emotion or budget availability rather than objective data. This course focuses on the "Economic Life" of an asset, utilizing rigorous modeling to determine the optimal point of overhaul or disposal.

The scope of this training involves the integration of reliability data such as Mean Time Between Failures (MTBF) and Mean Time To Repair (MTTR)—with financial metrics like Net Present Value (NPV) and Life Cycle Cost (LCC). Participants will examine the "U-Shaped" cost curve, where the decreasing cost of capital depreciation meets the increasing cost of maintenance and unreliability. The curriculum provides a framework for evaluating the "Total Cost of Ownership" (TCO) to justify high-value capital expenditures to executive leadership.

Coverage includes the evaluation of repair vs. replace scenarios, the impact of technological obsolescence, and the calculation of "Equivalent Annual Cost" (EAC) for assets with different lifespans. Attendees will explore "Level 4" decision-making tools, including sensitivity analysis and Monte Carlo simulations for risk-based replacement. By the end of this course, participants will be able to provide data-driven recommendations that minimize the long-term cost of asset ownership and maximize the return on invested capital.

COURSE OBJECTIVES:

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

• Define the concept of "Economic Life" and the "U-Shaped" cost curve.
• Calculate the "Total Cost of Ownership" (TCO) for critical plant equipment.
• Utilize "Net Present Value" (NPV) to compare different maintenance strategies.
• Determine the "Optimal Replacement Interval" using mathematical modeling.
• Apply "Equivalent Annual Cost" (EAC) to compare assets with different lives.
• Quantify the "Cost of Unreliability" and its impact on the replacement decision.
• Evaluate the impact of "Technological Obsolescence" on asset value.
• Conduct a "Repair vs. Replace" analysis for major machinery failures.
• Utilize "Sensitivity Analysis" to identify critical financial and technical drivers.
• Analyze the "Salvage Value" and decommissioning costs of retired assets.
• Integrate "Risk-Based Maintenance" (RBM) into the replacement schedule.
• Present compelling "Business Cases" for capital replacement to senior management.

TARGET AUDIENCE:

This course is designed for Asset Managers, Maintenance Managers, Reliability Engineers, Finance Business Partners, and Project Engineers.

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.