Replacement Theory

Maintenance
The act of performing functional checks, servicing, repairing or replacing of necessary
devices, equipment, machinery, building, infrastructure, and supporting utilities in
business.

Types:
1. Routine inspection
2. Breakdown Maintenance
3. Preventive Maintenance
4. Predictive Maintenance
5. Planned Maintenance
6. Total Productive Maintenance
What is Replacement Theory?

The Replacement Theory in Operations Research is used in the decision

making process of replacing a used equipment with a substitute -
mostly a new equipment of better usage.

‘Replacement’ is a core activity in maintenance management.

Need of Replacement
The replacement might be necessary due to:
• The deteriorating property or failure or breakdown of particular
equipment. e.g. machine tools, vehicles, equipment, buildings etc.
• Existing items have out-lived / out of date Eg.: Older versions of software
• It may not be economical anymore to continue with them
• The items might have been destroyed either by accident or natural calamity.
• Items which do not deteriorate but fail completely after certain amount of
use like electronic parts, street lights etc
• The existing working staff in an organization gradually diminishing due to
death, retirement, retrenchment & otherwise.
Types of Replacement
• Individual Replacement (Eg.: Replacing a TV at home)
• Group Replacement (Eg.: Replacing all street lights together)
• Staff Replacement (Eg.: New hiring for vacancies arising due to death,
employee attrition etc.)
Thank you