I’ve written a lot about the “repair or replace” dilemma, both the theory and the many practical challenges that can make this a difficult choice. The most popular article on this site is about the the 50% Rule, so this topic is clearly on the minds of my readers. Hopefully the discussion has been useful, but I wanted to go one step further and create a guide to help someone through an actual “repair or replace” decision. Here is the result:
Divided into 9 sections, the guide systematically takes you through what I believe are the most important components to making a good decision (see disclaimer*). The worksheet begins by asking you to provide information about the machine that is broken and the repair that is being considered. Then, it shows you how to make the value-added calculation to see if you’re contemplating an uneconomic repair. Lastly, it asks you to inventory and compare some key factors side-by-side before making your decision.
*Disclaimer: You are solely responsible for any repair or replacement decision made in conjunction with this worksheet. While this guide attempts to highlight factors that the author believes are relevant to making a good decision, your particular situation may have unique considerations that are not covered.