I’ve written a lot about the “repair or replace” dilemma, covering both theory and the many practical challenges that can make this a difficult choice. My article on the the 50% Rule is one of the most popular on this site, so it’s clear this topic is also on the minds of my readers. I think what I’ve uncovered is useful, but I wanted to go one step further and produce a guide to help someone through an actual “repair or replace” decision.
Along those lines, I present to you The Repair Or Replace Worksheet:
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 some key factors to help you compare your options, before finally 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.