Equipments are an important resource which is constantly used for adding value to products. So, it must be kept at the best operating condition. Otherwise, there will be excessive downtime and also interruption of production if it is used in a mass production line. Poor working of equipments will lead to quality related problems. Hence, it is an absolute necessity to maintain the equipments in good operating conditions with economical cost. Hence, we need an integrated approach to minimize the cost of maintenance. In certain cases, the equipment will be obsolete over a period of time. If a firm wants to be in the same business competitively, it has to take decision on whether to replace the equipment or to retain the old equipment by taking the cost of maintenance and operation into account.
Source: KumarAnil, Suresh N. (2009), Production and operations management, New Age International Pvt Ltd; 2nd Ed. edition.
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