Reliability & Analytics

Repair, Replace & Retire Scoring

A defensible verdict on every ageing machine

A verdict only holds up in front of a director if the arithmetic behind it can be read out loud and defended line by line — which is exactly why this module is built the way it is, not as a black box but as a fixed set of rules anyone can check against the work order log.

The Arithmetic Behind the Verdict

Every score starts from the same five inputs, and each one either adds to the total or, in one case, subtracts from it:

  • A maintenance-to-purchase cost ratio at or above 50% adds 3 points; at or above 30% it adds 2.
  • Failures accelerating — more breakdown and corrective work orders in the last 12 months than the prior 12, with at least 3 in the recent window — adds 2 points. If failures aren't accelerating but there are still 6 or more in the last 12 months, that adds 1.
  • Downtime loss at or above 25% of purchase cost adds 2 points.
  • Ten or more years since installation adds 1 point.
  • Active warranty or AMC coverage subtracts 1 point.

A total of 5 or more is a Replace verdict, 3 or more is Review, and anything below that is Repair — with minus one as the floor. Note that PM and PdM work orders never count as failures; only breakdowns and corrective jobs move that part of the score, which keeps a well-maintained asset from being penalised for the preventive work that's supposed to keep it running.

Why Fixed Weights Are the Point, Not a Missing Feature

There's no settings screen for these thresholds, and that's deliberate rather than an oversight. A maintenance head walking into a capex conversation needs a number that means the same thing every time it's cited — not a score that shifts because someone adjusted a weight last quarter. The trade-off is that AssetAI won't run an NPV or discounted cash flow against a quoted replacement machine, and it won't estimate remaining useful life; it's arithmetic on records that already exist, not a forecast. Finance teams building a payback case against a specific vendor quote will need to take the ratio and failure history from this card and build that model separately — the pricing page and use-cases library cover how AssetAI's other modules feed that kind of downstream analysis. For plants formalising their reliability programme against a recognised framework, it's also worth checking how RRR scoring sits next to ISO standards work and broader TPM practice.

Where the Score Breaks Down in Practice

The single biggest risk to trusting this card isn't the formula — it's incomplete asset records, which is a common gap across Indian plants still moving off paper logs or spreadsheets, as the What is a CMMS primer covers in more detail. A few practical points worth flagging to anyone rolling this out:

  • The cost ratio is cumulative across the asset's entire life, not a rolling window, so it only ever climbs — a machine can't "recover" a lower ratio even after a quiet year.
  • Because the ratio needs purchase cost to mean anything, an asset entered without it will show the ratio as unavailable rather than a misleading zero, which is the honest failure mode but still means someone has to go back and fill the field in.
  • Downtime cost per hour has to be entered for the downtime-loss weight to fire at all — plants in capital-intensive sectors, per the sector patterns in IBEF's industry data, tend to have the most to gain from getting this one right, since downtime cost is often where the real replacement case lives.

Numbers only carry weight when the plant's records are clean enough to trust them, and that is where most of the real work in using this module actually happens. The two sections below cover what a maintenance head needs to do around the arithmetic, not inside it.

Where the Verdict Actually Lives

The score isn't a report you generate and file away — it renders directly on the asset's History card inside AssetAI, sitting alongside the work order trail that produced it. That placement matters for how it gets used:

  • Open any asset and the panel is already there — red, amber or green — with the reasons printed underneath, so nobody has to re-derive the argument from raw logs before a meeting.
  • The daily alert sweep watches for repeat-offender assets — machines throwing the same fault repeatedly — and routes those alerts back to this same card, so a pattern that might otherwise sit buried in a maintenance log surfaces as a scored verdict instead of a vague complaint.
  • Because the card is per-asset, there's no separate RRR dashboard to check every morning; the verdict shows up exactly where the maintenance history already lives, which keeps it part of the normal workflow rather than a bolt-on report. If you want to see how this sits next to the rest of the platform, the full feature set lays out where History cards, work orders and alerts connect.

Getting the Inputs Right Before You Trust the Verdict

The arithmetic is only as good as three fields: purchase cost, installation date and downtime cost per hour. Plants that skip these during asset onboarding — common when registers are migrated in a hurry from spreadsheets or a legacy CMMS — will see the ratio branch sit out of the score entirely, because AssetAI states plainly that the ratio is unavailable rather than guessing at one.

  • Fill in purchase cost at the same time you create the asset record, not after the first Replace conversation comes up — the ratio sums every historical work order the moment the field exists, so backfilling it later still recalculates correctly.
  • Log breakdown and corrective work orders distinctly from PM and PdM ones; only breakdown and corrective entries count as failures, so a plant that logs everything under one generic category will understate the failure trend regardless of how bad it actually is.
  • Keep downtime cost per hour current — it drives the loss-based points independently of the failure count, and it's easy to leave at a default value long after shift patterns or output value have changed.
  • Review warranty and AMC end dates in the registry; an expired contract still marked active will quietly subtract a point the asset no longer deserves.

None of this requires new process for its own sake — most Indian manufacturing plants tracking OEE or running a TPM programme already collect these fields for other reasons, and the scoring module simply reuses them. If your registry is missing them across the board, that's a data-quality conversation worth having before the first Replace verdict reaches a director's desk — book a demo and we can walk through what your current asset data supports.

Repair, Replace & Retire Scoring FAQs

How do I know if a machine should be replaced or just repaired based on what I've already spent on it?

AssetAI's Repair, Replace & Retire Scoring compares your total maintenance spend against the original purchase cost of that asset. It calculates the maintenance-to-purchase ratio from every work order in the system, then applies fixed decision rules: if maintenance costs reach 50% or more of the purchase price, the score shifts toward replacement; at 30% or higher, it flags for review. The system also factors in failure frequency over the last two 12-month periods, downtime costs, asset age, and warranty status—then prints the exact reason behind its verdict so you're not guessing.

What happens if I don't have the purchase cost entered in the system?

The scoring system will tell you the maintenance-to-purchase ratio is unavailable and ask you to fill in the asset's purchase cost before it can complete the evaluation. This is honest degradation: AssetAI won't fabricate a number or make a replacement decision without the data it needs. Once you add the purchase price to the asset record, the score will recalculate and show you the full reasoning behind Repair, Review, or Replace.

Can I set my own thresholds for when a machine gets flagged for replacement?

No. The scoring thresholds are fixed in code and cannot be customized through a settings screen. Every asset is evaluated using the same decision rules: maintenance-to-purchase ratios at 50% and 30%, failure acceleration comparison, downtime cost, age, and warranty coverage. This standardization ensures consistency across your plant and prevents threshold-shopping. If you need to discuss how these rules apply to your specific equipment strategy, contact AssetAI to understand how the scoring aligns with your maintenance philosophy.

I see a "Review" verdict on a pump instead of a clear Replace or Repair—what does that actually mean?

"Review" is the amber verdict, and it means the asset has crossed into uncertain territory based on the scoring inputs. This typically happens when maintenance spending is climbing toward the replacement threshold (around 30–50% of purchase cost), or when failure patterns are shifting, or when the asset is aging while still under warranty. The system prints the specific reason—for example, "failures increased year-over-year" or "maintenance costs now at 35% of purchase price"—so you can make an informed decision without waiting for a catastrophic breakdown. Learn more about all platform features that support this kind of condition-based decision-making.

Does the scoring predict how long a machine has left before it fails completely?

No. The scoring is arithmetic on past records only; it does not forecast remaining useful life or estimate when failure will occur. It tells you what has already happened—total spend, failure count, downtime impact, and age—then applies those facts to a decision rule. If you want to layer in predictive maintenance or condition monitoring, those are separate strategies. The Repair, Replace & Retire score is a financial and historical snapshot that feeds into your preventive maintenance strategy, not a crystal ball for future breakdowns.

How does this scoring connect to my daily alerts, and why would I see it when a machine fails repeatedly?

When a machine generates repeat-offender alerts—the same issue recurring across multiple work orders—the daily alert sweep automatically points you to the Repair, Replace & Retire scoring card for that asset. This surfaces the cumulative picture: the alert shows you the immediate problem, and the score shows you the long-term cost and failure trajectory. Together they answer whether you should keep patching or step back and replace. The color-coded verdict (red, amber, or green) makes it easy to spot assets that need strategic review, not just reactive fixes.

Our plant has machines from 2005 that still run—how does the scoring account for age when everything else looks fine?

The scoring weights operational cost trends over pure age. A 2005 machine running efficiently with low repair spend scores differently than one with rising downtime. Check the cost analysis breakdown in the verdict details to see what's actually driving the recommendation—age alone won't trigger replacement if maintenance data doesn't support it.

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