Asset Capital Replacement Index Report

The Asset Capital Replacement Index Report is a capital equipment replacement planning report.

The Asset Capital Replacement Index Report is a Type – Designer, Sub Type - Complete report that displays all of the assets in your inventory, and provides a forecast replacement plan for the next 36 months.

Key factors in this report solution are the use of the Date Accepted field and the Life Expectancy field. TMS will disregard PM and PE work orders in the report calculations.

You can find the report by executing a simple query in the Reporting Module. To find the report, follow these steps.

1. Select Reports > Query.

2. In the Segment field, select System. Standard reports are stored in the system segment.

3. In the Name field, enter *capital*. This will return all reports with the word “capital” in the name.

4. Double-click the Asset Capital Replacement Index Report.

Setting up the Asset Capital Replacement Index Report

To set up TMS to use this report, you need to use the following setup items and fields in the way in which we’ve described below. All of these fields can be found on the Asset Edit screen.

• Date Accepted - This value is used to calculate the current Asset Age (in months)

• Display Life Cycle Data Option - The Asset module option Display Life Cycle Data must be enabled. If you are unsure of how to do this, see the instructions below.

• Life Expectancy – This value is the expected amount of life (in years) that the asset should be used prior to being replaced.
• Starting Date – This value is the start date of the asset depreciation.
• First Month – This value is the first month to start asset depreciation.
• Salvage Value – This value is the minimum value of the asset when it’s removed from service.
• Cost Basis – This value is the total cost of placing the asset into service.

The image below shows the location of the Date Accepted field on the Main tab of the Asset Edit screen.

The image below shows the location of the Asset Life Cycle group of fields on the Additional Info tab of the Asset Edit screen.

Key Calculations

There are three key calculations that factor into this report. They are:

• Age Index
• Failure Index
• Asset Scoring Guide

Age Index

Asset Actual Age (Production Days in months)/Asset Life Expectancy (in months) = % of Life Consumed

(48 months used/120 months LE)* 100 = 40% of life consumed = Factor of 1

If % of Life = 0 to 25 % = Factor of 0

If % of Life = 26 to 50 % = Factor of 1

If % of Life = 51 to 75 % = Factor of 2

If % of Life = 76 to 100 % = Factor of 3

If % of Life = 101 % and Greater = Factor of 4

Failure Index

Production Days/# of corrective work orders = FI (Avg. Days between Failure in months) excluding PM work orders.

(48 months/9 work orders) = 5.34 months = Factor of 3

13 months and greater = Factor of 0

9-12 months = Factor of 1

6-8 months = Factor of 2

3-5 months = Factor of 3

1-2 months = Factor of 4

0 months = Factor of 0

Asset Scoring Guide Line

Age Index + Failure Index = Capital Replacement Index (CRI)

If 8 points = A = Immediate Replacement < 12 months

If 6 to 7 points = B = Replace within 12 to 24 months

If 4 to 5 points = C = Replace within 24 to 36 months

If 3 points or less = D = Disregard for replacement at this time