Replacement analysis for components of large scale production systems

The unavailability of essential components can render large scale production systems inoperable. This paper introduces a general methodology for the determination of feasible repair/replacement strategies for a population of identical components. A population is formed by grouping components into “streams” based on similar operating hours, failure distributions, or operating environments. Since homogeneous populations are formed, it is then possible to consider a “representative” component. A recursive measure of effectiveness is defined as a function of the age and current operational status of the components. Technology effects on capital cost and operating expenses are assumed to be linear and exponential, respectively, in this modeling approach. A small numerical example that considers two streams of components is included to illustrate usage of the population methodology.