TAR Asset Replacement Strategies
Industry good practices state that each site should start their respective planning and preparation two years in advance of the TAR date. However, in many instances particularly for critical equipment which require significant investment, even this is too late. Many TAR teams are forced into repair scenarios which present additional risk to the budget, schedule and in some cases safety.
Predicting TAR budgets based on historical costs, results in the organisation challenging each proposed replacement cost, without managing the long-term business objective of achieving sustainable operational availability (OA) performance.
To optimise the TAR process, sites should perform “repair versus replace” assessments immediately after execution of the respective event and then develop a vital equipment work list. However, even this short-term focus on a single TAR cycle, does not provide a complete picture of the asset life cycle, which can be over a longer period of time, 3 or even 4 cycles.
Creating a 3 (or 4 cycle) TAR asset replacement strategy, integrated into the unit strategy, will allow asset teams (clients) to manage the complete “end to end” life cycle plan. Smoothing out the budget planning call horizon, allow decisions to be made within the CAPEX approval process, provide time for detailed engineering and design, as well as the lead time for fabrication to get replacements on site in time for the next TAR event.
TAR asset replacement strategies position the organisation for success; enabling the TAR team and asset team to focus their respective efforts to optimise the execution activities of the event.
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If you would like to learn more or have a question regarding TAR Asset Replacement Strategies, please contact JU-TECH Consultants.