Answering this question requires considerable information and analysis, and judgment. For example:

1. What’s the current state of the asset?

2. What’s expected of the asset in the coming 1, 3, or 5 years?

3. Is it functional? Would it benefit from a defect elimination program?

4. Have I considered my current practices and how they might impact the asset? Or a new asset? We shouldn’t replace something only to treat a new one poorly and be asking the same question in a few years.

5. What is the value of lost production and how does that figure into my determination?

6. Are parts available now? In the future?

7. If so, is the cost reasonable? Lead time reasonable?

8. Have I considered my capital budget? My maintenance budget? Tradeoffs thereto?

9. Is new technology available that is advantageous? How does that impact the decision?

10. What about interest rates and the value of capital? Depreciation?

We’ll explore these and other questions, and provide guidance in helping you answer this fairly frequent, fundamental, and ofte3n complex question.