{"id":4913,"date":"2024-08-01T08:00:00","date_gmt":"2024-08-01T12:00:00","guid":{"rendered":"https:\/\/www.hirezdemo.xyz\/repair-or-replace-decisions-are-easy-with-cmms-software\/"},"modified":"2025-02-19T10:47:25","modified_gmt":"2025-02-19T15:47:25","slug":"repair-or-replace-assets-cmms-software","status":"publish","type":"post","link":"https:\/\/eptura.com\/discover-more\/blog\/repair-or-replace-assets-cmms-software\/","title":{"rendered":"Data-driven repair-or-replace decisions: How to find the best time to say goodbye"},"content":{"rendered":"

Moving targets are the hardest to hit, which is why traditionally it\u2019s been hard to know when to stop repairing an asset and replace it. Calculating the right time involves a lot of different numbers, from the cost of ongoing maintenance and future repairs to removal and disposal. Moving too early means you\u2019re throwing away value, giving up some of your return on investment. But waiting too long might be worse, costing you time and money.\u00a0<\/span>\u00a0<\/span><\/p>\n

And for larger, enterprise-level organizations, the stakes are even higher. The more assets you have, the better you must be at managing them.<\/span>\u00a0<\/span><\/p>\n

When to repair or replace assets<\/span>\u00a0<\/span><\/h2>\n

The concept is straightforward. When the cost of maintaining or repairing an asset is more than its value, you replace it. When the cost of the repairs is less than the value, you repair it. And the rule generally applies across all asset types.<\/span>\u00a0<\/span><\/p>\n

Fleet management is a good example, because repair-or-replace decisions come up all the time. When there\u2019s an accident, you look at the vehicle\u2019s value before approving the repairs. For a smaller economy sedan near the end of its useful life, it might be better to write it off. For something newer, where the value of the vehicle is still much more than the cost of the repairs, you fix it.<\/span>\u00a0<\/span><\/p>\n

There are three important elements of the equation to remember. The cost of the repairs is not the deciding factor. It\u2019s the repairs in relation to the value of the vehicle. And it\u2019s not what you paid for the vehicle. Instead, it\u2019s the vehicle\u2019s current value.<\/span>\u00a0<\/span><\/p>\n

Why repair or replace is important for asset management<\/span>\u00a0<\/span><\/h2>\n

Asset management<\/a> is about getting the highest possible return on your investments. When you replace assets too early, you\u2019re throwing away value. That asset could have delivered more, but you lost the opportunity to benefit.<\/span>\u00a0<\/span><\/p>\n

When you replace too late, there are negative impacts, including increased:<\/span>\u00a0<\/span><\/p>\n