The 'REPLACE' Model: A Common Sense Approach to Asset Replacement Strategies

In today's electricity market, there is a continuing trend to not only defer replacement, but also drive the assets harder. While theoretical calculations may prove that an asset can be pushed further, we are probably looking for quick fixes rather than long-term solutions. One of the dilemmas, often faced, is to decide when assets need replacement. Several factors can influence this decision. The 'REPLACE' model attempts to provide a simple yet powerful tool to assist in making this decision. The criteria considered in this model are: RE - Reliability; PL - Plant (Technology); A - Ability (Capacity/Utilisation); C - Care (Maintenance); E - Environment. Each criterion is given a priority/importance rating which determines its impact on the overall assessment. Other criteria may be used or added/deleted easily which can make the model adaptable to any asset. Performance levels are set for each criterion and for the combined rating. An asset will need replacement if it fails an individual criterion or in the combined rating.