Cost Effective Analysis of a Damaged Manufacturing Equipment

Abstract

A fire in a production line of a chemical plant in Guymon, Oklahoma, caused damaged to a manufacturing pressure vessel. A cost analysis was performed to determine if the pressure vessel needed to be repaired or replaced. A full evaluation of the damaged equipment was completed. A project budget was developed and presented to management for approval. Quotes and estimates for both, repair and replacement were requested for the completion of the cost analysis. The cost analysis was completed and determined that a full replacement was the best option as it will allow the team to meet the project objectives. Key Terms ⎯ budget, cost analysis, pressure vessel, repair/replacement.