Construction Engineering & Management - Vol 1 | 15. Equipment Life and Replacement Analysis (Part-1) by Abraham | Learn Smarter
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15. Equipment Life and Replacement Analysis (Part-1)

This chapter covers the concepts of equipment life and replacement analysis, focusing on determining the optimal economic life of machinery. It discusses various factors influencing the decision to replace machinery, such as repair costs, productivity, and obsolescence. Additionally, the chapter introduces analytical methods for estimating replacement time and highlights the importance of understanding costs associated with maintaining and operating equipment over its lifespan.

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Sections

  • 1

    Construction Methods And Equipment Management

    This section discusses equipment life and replacement analysis, focusing on defining economic and physical life of machines, along with cost-benefit considerations for replacing old equipment.

    Learning Practice

  • 2

    Lecture-06 Equipment Life And Replacement Analysis (Part-1)

    This section discusses the analysis of equipment life and replacement strategy, highlighting key concepts such as economic useful life, physical life, and the factors influencing the replacement decisions.

    Learning Practice

  • 3

    Outline Of The Lecture

    This section introduces the replacement analysis of construction equipment, detailing the importance of optimizing equipment life for cost efficiency and productivity.

    Learning Practice

  • 3.1

    Defining Equipment Life

    This section covers the various concepts related to equipment life, including definitions of economic, physical, and profit life, along with the factors influencing these definitions.

    Learning Practice

  • 3.2

    Estimating Economical Useful Life

    This section discusses how to estimate the economically useful life of construction equipment, emphasizing the importance of timely replacement for optimal performance and cost management.

    Learning Practice

  • 3.3

    Illustrations For Estimating Economic Life

    This section discusses the estimation of economic life of construction equipment, focusing on replacement analysis and key concepts involved in determining the optimal time for equipment replacement.

    Learning Practice

  • 4

    Phases In Equipment Life

    The section discusses the various phases of equipment life, focusing on equipment acquisition, usage, wear and tear, and the decision-making process for replacement.

    Learning Practice

  • 4.1

    Purchase And Use

    This section explores the phases of equipment life, focusing on the importance of replacement analysis to optimize equipment management in construction.

    Learning Practice

  • 4.2

    Replacement Decision

    This section discusses the importance of equipment replacement decisions in construction management, focusing on economic life and effective cost analysis.

    Learning Practice

  • 4.3

    Obsolescence And Efficiency

    This section covers the importance of understanding equipment life and replacement analysis in construction management, emphasizing the need for economic efficiency and timely replacement to maintain profitability.

    Learning Practice

  • 5

    Economic Useful Life

    The economic useful life of equipment is the duration during which the costs associated with the equipment are minimized and profits maximized.

    Learning Practice

  • 5.1

    Definition

    This section outlines the concepts related to equipment life and replacement analysis within construction methods and equipment management.

    Learning Practice

  • 5.2

    Determining Economic Life

    This section discusses the concept of equipment life, focusing on the economic useful life and replacement analysis in construction equipment management.

    Learning Practice

  • 5.3

    Cost Minimization And Profit Maximization

    This section focuses on the importance of equipment life and replacement analysis in construction management, emphasizing cost and profit optimization.

    Learning Practice

  • 6

    Replacement Analysis

    This section focuses on the analysis of equipment replacement, defining equipment life phases, and determining the optimal time for replacing machinery to maximize cost efficiency.

    Learning Practice

  • 6.1

    Defender And Challenger Terminology

    This section introduces key terms related to equipment life and replacement analysis within construction management.

    Learning Practice

  • 6.2

    Cost Components In Replacement Analysis

    This section discusses the various cost components involved in the replacement analysis of construction equipment and how these factors influence the decision to replace machinery.

    Learning Practice

  • 7

    Types Of Equipment Life

    The section explains the different phases of equipment life, focusing on factors that influence repairs, maintenance, and replacement timing for optimal operational efficiency.

    Learning Practice

  • 7.1

    Physical Life

    This section discusses equipment life stages, emphasizing replacement analysis for optimal equipment management.

    Learning Practice

  • 7.2

    Profit Life

    This section examines the concepts of equipment life and its economic implications in construction management, focusing specifically on profit life and replacement analysis.

    Learning Practice

  • 7.3

    Economic Life

    This section discusses the concepts of economic life and replacement analysis of construction equipment, emphasizing decision-making for cost-effectiveness.

    Learning Practice

  • 8

    Cost Considerations

    This section discusses the economic considerations of equipment life, emphasizing the importance of timely machine replacement to optimize costs and profits.

    Learning Practice

  • 8.1

    Inflation Cost

    This section discusses the impact of inflation on equipment replacement analysis in construction management.

    Learning Practice

  • 8.2

    Downtime Cost

    This section discusses the concept of downtime cost, which is associated with the periods when equipment is non-operational due to repairs or inefficiencies, and its economic implications.

    Learning Practice

  • 8.3

    Obsolescence Cost

    Obsolescence cost refers to the financial impact associated with outdated machinery in terms of value loss and reduced productivity.

    Learning Practice

  • 9

    Estimation Of Economic Life

    This section discusses how to estimate the economic useful life of construction equipment, emphasizing the importance of timely replacement.

    Learning Practice

  • 9.1

    Working On An Illustration

    This section discusses equipment life, replacement analysis, and the concept of economic useful life in the context of machinery management.

    Learning Practice

References

6 a.pdf

Class Notes

Memorization

What we have learnt

  • Equipment life includes pur...
  • Economic useful life is def...
  • Obsolescence costs and down...

Final Test

Revision Tests