Need for incorporating reliability and availability in payback calculations

• Autorzy: Shouri P. V. , Sreejith P. S.
• Języki publikacji: EN

Abstrakty

EN

Purpose: The paper presents a method of payback calculation based on the process valuation model by incorporating reliability and availability. The paper also presents a comparison of calculation of payback periods using the conventional method with the method that uses the valuation model. Design/methodology/approach: The value of the system is arrived by considering the present worth of expected future cash flows. The model takes into consideration the system availability, in addition to the other cost elements like investment cost, and maintenance as well as operating cost. Findings: Calculation of pay back using valuation model was compared with the conventional method. The valuation model method proves to be a better tool in making safe decisions. Practical implications: In order to arrive at the economic feasibility of the new proposal the benefits that can be derived over the lifetime as well as the operating and maintenance costs are compared with the investment to be made. However, quite often the change in reliability of the proposed new design as a result of the change in system configuration or change in system components or both of these factors are not taken into consideration. Originality/value: Any new proposal for modification of the existing process or equipments should prove itself to be economically feasible for gaining acceptance for implementation.

Słowa kluczowe

EN

availability; breakeven availability; reliability; system value; change in system value

PL

bezdeficytowa gotowość; niezawodność; system wartości; zmiana systemu wartości

• Wydawca: International OCSCO World Press
• Czasopismo: Journal of Achievements in Materials and Manufacturing Engineering
• Rocznik: 2008
• Tom: Vol. 31, nr 2
• Strony: 816--821
• Opis fizyczny: Bibliogr. 11 poz., wykr., tab.

Twórcy

autor

Shouri P. V.

autor

Sreejith P. S.

• School of Engineering, Cochin University of Science and Technology (CUSAT), Cochin- 682 022, Kerala, India,

Bibliografia

• [1] E. E. Charles, Reliability and maintainability engineering, First Edition, Tata McGraw-Hill Publishing Company Ltd., New Delhi, 2000.
• [2] H. D. Goel, J. Grievink, P. Hetrder, M. P. C. Weijnen, Integrating reliability optimization into chemical process, Reliability Engineering and System Safety 78 (2002) 247-258.
• [3] Y. C. Hsieh, T. C. Chen, D. L. Bricker, Genetic algorithm for reliability design problems, Microelectronics Reliability 38 (1998) 1599-1605.
• [4] J. Lutz, A. Lekov, P. Chan, C. D. Whitehead, S. Meyers, J. McMahon, Life-cycle cost analysis of energy efficiency design options for residential furnaces and boilers, Energy 31 (2006) 311-329.
• [5] L. R. James, D. B. David, U. R. Sabah, Engineering economics, Fourth Edition, Tata McGraw-Hill Companies, Inc., New York, 1996.
• [6] W. Kuo, V. R. Prasad, An annotated overview of systemreliability optimization, IEEE Transactions on Reliability 49/2 (2000) 176-187.
• [7] D. T. O. Patrick, Practical reliability engineering, John Wiley & Sons Ltd, 2002.
• [8] P. V. Shouri, P. S. Sreejith, Algorithm for break even availability allocation in process system modification using deterministic valuation model incorporating reliability, Energy Conversion and Management 49 (2008) 1380-1387.
• [9] S. Bhatt, Energy audit case studies I-steam systems, Applied Thermal Engineering 20 (2000) 285-296.
• [10] L. S. Srinath, Reliability engineering, Affiliated East West Press, New Delhi, 1991.
• [11] P. S. You, T. C. Chen, An efficient heuristic for series-parallel redundant reliability problems, Computers and Operations Research 32 (2005) 2117-2127