PERDEC - Optimizing Plant Machinery and Equipment
Economic Life Decisions for Machinery and Fixed Equipment. Read more...
Perdec answers one of the biggest challenges that machine operators face
PERDEC software is designed to assist managers of machinery and fixed equipment.
— replace the machine, or hang onto it?
PERDEC software is designed to assist managers of machinery and equipment to establish the economic life of their assets and to assist in determining the optimal decision for difficult repair vs. replace situations, along with monitoring individual equipment to establish its optimal replacement time.
The longer an asset is kept in service, the lower its ownership cost. However, there is a conflicting cost trend — that of an increasing operations and maintenance cost. The goal of PERDEC is to establish unambiguously the year at which the total cost takes its lowest value. That then is identified as the asset’s economic replacement age.
If you are an operations superintendent, a maintenance superintendent, a reliability engineer, a physical asset superintendent or a capital equipment buyer PERDEC is what you need to make the best decision.
The benefits you will get:
- replace or repair decision support tool – improved decision making, reduced cost
- shows the Equivalent Annual Cost (EAC) curve (based on purchase price, operations and maintenance costs) – prompts the replacement decision at the lowest EAC
- allows the right decision to be made for an expensive repair – includes expected repair costs to provide the lowest cost alternative
- monitors individual equipments to identify the optimum replacement or disposal time
- predicts the cost curve based on past data (where historic data exists)
- tracks the cost curve based on current data (where no historic data exists)
- easy to use data entry screens requires little training
- easy to read graphical output shows results at a glance
- simple graph export routine to show results in (eg) Powerpoint
- shows the cost impact of varying annual usage per equipment
- provides “what if” model for variances in taxes, inflation and discount rate
The data you need:
- acquisition cost
- utilization profile (steady profile of usage per year, variable, intermittent)
- inflation rate for the period
- discount rate for the present value of future cash flows
- taxes
- operations and maintenance costs
- resale value
The output you will get:
- equivalent annual cost (predicted annual cost of owing and operating the equipment)
- best year for replacement
- graphs of the cost curve
The PERDEC software will enable you to establish the optimal time to dispose of an asset such that the Equivalent Annual Cost (EAC) is minimized. It will enable you to display the results graphically and undertake a variety of “what-if” analyses, such as changes in assumptions about interest rates, resale value trends, O & M cost trends and so on.
If you have no data and have just purchased a new piece of equipment, PERDEC will enable you to monitor the EAC as each year passes to enable you to identify when its optimal replacement age is likely to occur.
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, PERDEC can be used to establish the most economically advantageous choice such at the long-run EAC is minimized.
Typical Users are for example:
Dofasco Steel
Department of Public Works, Canada
Miller Brewing
London Brick Company
Alcoa Aluminum
Australian Broadcasting Company
Ask us for a free demo of PERDEC to try it out for yourself.
For more information please contact Claudia@omdec.com .