An approach is presented whereby the design and replacement of finite life equipment may be approached in a rational manner. Considering manufacturing operations large enough to give a sufficient component population, statistical methods are used to predict failure distributions and attendant cash flows. Cash flows are minimized to yield optimum replacement schedules. Component design is optimized by relating component failure probability to initial investment. By considering component replacement according to the above described optimum replacement schedules, optimum initial investment is determined. The approach is illustrated by the problem of the design and retirement of furnace tubes.

  • Supplemental Notes:
    • Prepared for Meeting 16-20 September 1973.
  • Corporate Authors:

    American Society of Mechanical Engineers

    Two Park Avenue
    New York, NY  United States  10016-5990
  • Authors:
    • Nelson, N W
    • Hayashi, K
  • Publication Date: 0

Media Info

  • Features: References;
  • Pagination: 6 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00051128
  • Record Type: Publication
  • Source Agency: Engineering Index
  • Report/Paper Numbers: #73-Pet-10 Paper
  • Files: TRIS
  • Created Date: Feb 28 1974 12:00AM