Fleet Optimisation (Repair or Replace)

July 21, 2021

Bluefield AMS worked with our client to apply our Life Cycle Cost Modelling expertise to resolve its repair or replace decision.

 

Problem

Our client had high-end production and maintenance support equipment ready for demobilisation due to poor performance. Within the business, there were conflicting replacement options identified.

Bluefield was engaged to provide independent analysis and recommendations of the best option for the business based on cost and risk.

We were able to retain to support the implementation of the accepted solution with operational readiness and continued stakeholder engagement for maintenance improvement.

 

Solution

  • Detailed analysis of the equipment status, condition and history was carried out to determine the key reliability issues and potential for continued operation.
  • Life Cycle Cost Modelling (LCCM) and Equivalent Unit Cost (EUC) was completed for several feasible replacement/continued operation options.
  • Alternate demobilisation options were modelled to ensure the maximum value was achieved from the existing assets.
  • Action recommendations were formulated to ensure an increase in the reliability of the asset for continued operation options.

 

The Results

  • The assets have continued in operation for a further defined life.
  • This resulted in significant savings for the business and allowed an increase in production productivity.
  • The Bluefield recommendations have been implemented to increase reliability and reduce the operating cost of the equipment.  Bluefield has since been re-engaged to perform a similar analysis of other equipment within the business.
  • The key to success was working with the site stakeholders in an open and honest manner to ensure the quality of inputs to the model. Bluefield did not pretend to have all the answers upfront.

Download Case Study