Machines depreciate over time; it is an unfortunate fact that every company has to deal with. When problems arise, knowing how to analyze the problem and identify the possible solutions can help you to decide if it is in your best interest to fix a machine or to replace it.

Look for these signs in your analysis to decide if it is time to replace your machine:


1) The Cost of Maintenance Is Expensive

Although replacing a machine is a hassle, especially if you have to retrain your employees on how to use it, it makes more sense financially to replace it if the cost of maintenance is getting too expensive. While regular maintenance will give any machine a longer lifespan, there’s only so much wear and tear it can take.

One rule to consider is the “50% Rule.” This rule states that, if the cost to repair is more than 50% of the total cost of replacing the equipment, it’s time to find a new model.


2) Your Machine Is Frequently Out of Service

If your machine is breaking down so often that it is frequently out of service, it may be time to replace it. This can especially be an issue if the machine is out of service long enough to affect production levels and decrease your potential profit.

If your machine is out of service so often that you can no longer rely on it to get the job done, this could be detrimental in meeting the demands on your customers. Your equipment’s functionality – or lack thereof – should not come at the expense of your customers.

Your customers rely on your products getting out when they’re supposed to, so you can’t afford to leave it up to chance.

3) The Machine Is Close to the End of Its Useful Life

The useful life of a machine is the amount of time that a machine is still usable before the value of the machine has fully depreciated, usually expressed in years. It is important to know every machine’s useful life, not just for production and maintenance, but also for accounting records as well.  

Even if the machine is still within its useful lifespan, it still may be more cost effective for you to replace the machine. A machine can show other signs of needing to be replaced even within its useful life, so don’t be afraid to replace it earlier if your production capabilities are suffering.   


4) Your Equipment Is Outdated

If your equipment is outdated and better, more efficient equipment is on the market, it could be time to replace, especially if the ROI of purchasing the newer equipment is positive. Newer equipment may cut down on the time and costs of maintenance, in addition to reducing the cost of producing goods in the first place.

5) Your Machine Poses Safety Risks

Newer equipment often includes more safety features. If replacing your machine will drastically improve safety to your employees, you should replace. Employee safety should always be a priority, even if it is costly.


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