OMDEC - Optimal Maintenance Decisions Inc.

The AGE/CON software is designed to assist owners and operators of mobile equipment establish the economic life of their assets, as well as assist in determining the optimal decision for difficult “repair versus replace” situations along with monitoring an individual equipment to establish its optimal replacement time.

The longer a vehicle is kept in service the lower is its ownership cost, but there is a conflicting cost trend, that of an increasing operations and maintenance cost.

The goal of AGE/CON is to establish unambiguously the year at which the total cost takes its lowest value.

That then is identified as the assets economic replacement age.

 

The data you need:

• Purchase price of the vehicle
• Trend in operations and maintenance costs- possibly fuel, tires, lube, oil, parts, labour
• Trend in trade-in or disposal value of the asset at different replacement ages
• Interest rate appropriate for discounting to take into account the time-value of money
• Tax rules (if applicable)
• Utilization trend of the assets – for example are they steadily used year to year, or are new vehicles highly utilized with older vehicles being used to meet peak demands
• Inflation rates (if applicable)

Even if your database is not great, AGE/CON will give you better replacement indications than your previous estimates!

Fleet Management and vehicle replacement decisions are complex - AGE/CON helps to combine lowest cost with maximum efficiency.

If you have no data and have just purchased new equipment AGE/CON will enable you to monitor the Equivalent Annual Cost (EAC) as each year passes to enable you to identify when its optimal replacement age is likely to occur.

 

AGE/CON can easily pay for itself the first time you use it!

The Output you’ll get:

• Tables showing the “Best Year” (i.e. lowest cost year) in the life of the equipment, together with…
• The total Equivalent Annual Cost (EAC)
• Graphs tracking total cost by year
• “what-if” analyses showing changes in assumptions such as interest rates, changes in resale value, operations and maintenance costs
• Impact of a major impending repair or replace decision

This screen above allows you to select the scenario that most closely resembles your policy of utilization.

 

 

This screen shows how you select which inflation calculation you’ll require.

If you are faced with a major repair, and need to decide whether or not to proceed with the repair, or advance the planned replacement time, AGE/CON can be used to establish the most economically advantageous choice such that the long-run EAC is minimized.

Typical Users are for example:

Pan American Energy, Argentina

Falconbridge Mining, Canada

Australian Air Force

Birmingham University (England)

Use AGE/CON and get the Repair-or-Replace, the Lease-or-Buy or the question of establishing how much equipment is required to do a given amount of work answered.

Shell Oil

Hong Kong Mass Transit

• It can be used in any industry where a vehicle fleet is a significant part of their operations
• Bus fleets, trucking companies, car rentals, leasing companies
• Delivery and courier companies, mail delivery
• Any heavy steel industry such as mines, steel, metals processing, chemicals, oil and gas, petrochemical, pulp and paper
• Municipal, state and federal departments, military, customs, airports, sea ports
• Telecom, gas, electrical, water distribution companies
• Companies doing office and home visits, health care, maintenance aso

Ask us for a free demo of AGE/CON to try it out for yourself.

For more information please contact Claudia@omdec.com .

 

Please download the brochure.