Repair Versus Replace Total Cost Decision Kit

Repair versus replace decisions are usually made too late and with incomplete information.

This kit installs a consistent method so you can:

• avoid throwing good money after bad
• reduce emergency downtime events
• align approvals to clear thresholds

What you will produce

1. A total cost comparison worksheet
2. Risk flags for replacement
3. Approval thresholds by cost and criticality
4. A documentation checklist

Step-by-step implementation

Step 1: Define a replacement trigger

Examples:

• repeat failures within a fixed period
• repair cost exceeds a percent of replacement cost
• safety risk increases

Step 2: Compare total cost, not just upfront cost

Include:

• repair cost
• downtime cost
• energy and operating cost differences
• lead time risk

Step 3: Define approval thresholds

If approvals are unclear, decisions will be delayed.

Templates

A) Repair versus replace worksheet (copy and paste)

Copyable template (TEXT)
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Repair Versus Replace Worksheet

Asset:
Location:
Criticality tier:

Option A: Repair
- Repair cost: $____
- Expected life extension (months): ____
- Expected downtime (hours): ____
- Downtime cost per hour: $____
- Total estimated cost: $____

Option B: Replace
- Replacement cost: $____
- Lead time (weeks): ____
- Install and commissioning cost: $____
- Expected downtime (hours): ____
- Energy or operating cost delta per year: $____
- Total estimated cost (year 1): $____

Decision:
- Repair / Replace

Approver:
Date:
Notes:

B) Replacement risk flags (copy and paste)

Copyable template (TEXT)
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Replacement Risk Flags

- Repeat failures increasing in frequency
- Repair cost exceeds ____ percent of replacement cost
- Safety risk or compliance risk exists
- Vendor no longer supports parts or service
- Lead time risk makes future failure unacceptable

Common failure modes

• decisions are based on sunk cost instead of future cost
• downtime cost is ignored
• approvals are unclear, so work proceeds by default