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Replacement Mix
The different replacement strategies that are set up for each asset in the inventory.

The replacement mix is typically reflected in a replacement policy and is based upon an understanding of replacement drivers, the forces of retirement and deterioration models
associated with capital projects.


Standards & Criteria
The replacement mix applies
rules for choosing the least costly of the different policies under specified conditions of:
Replacement mix is guided by the following principles:

Examples
For example:
Listed below is a summary replacement match strategy:
  • Unmaintainable assets - Run to Failure (RTF)
  • Bounded assets - Age-Based Replacement
  • Low-Capitalization Assets - Block Replacement
  • Portable Assets - Block Replacement
Asset replacement policies must align to asset risk profiles
Fig.  Asset replacement policies must align to asset risk profiles in order to achieve optimization and satisfy ISO 55001 requirements.


A balanced asset replacement mix helps the organization to achieve optimization in conformity with ISO 55001 principles
Fig. A balanced asset replacement mix helps the organization to achieve optimization in conformity with ISO 55001 principles.

Fig. Network diagram of alternative asset replacement policies.
Fig. Network diagram of alternative asset replacement policies.


Bounded Asset on Age Based Replacement
Fig. Fire extinguishers are a bounded asset that must be replaced on fixed time intervals under an age replacement policy.


Low capitalization asset under block replacement policy
Fig. Light fixtures are a low capitalization asset that are usually replaced under a Block Replacement Policy (BRP).


Sample distribution of the percentage of assets under each of the five replacement strategies - the replacement mix.
Fig. Sample distribution of the percentage of assets under each of the five replacement strategies - ie., the replacement mix.

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I. Care is trying to blend the optimal replacement mix for the assets in his portfolio
Fig. I. Care is trying to blend the optimal replacement mix for the assets in his portfolio

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