Towards sustainable manufacturing by enabling optimum selection of life extension strategy for industrial equipment based on cost modelling

Abstract Sustainable manufacturing is of great importance in today’s world. In manufacturing, keep industrial equipment well-functioning is important because failure of equipment leads to significant financial and production losses. In addition, disposal of such failed equipment is both costly and environmentally unfriendly and does not recover any residual value. This raises the need to adopt methods and means that help extending the life of equipment and reduce waste of material. This paper presents a digital toolkit of cost model to estimate and understand the costs to be incurred when applying life extension strategy for industrial equipment. It is meant to be integrated with other tools and methodologies to enable end-users to perform optimal decision-making regarding which life extension strategy (e.g., remanufacturing, refurbishment, repair) to implement for large industrial equipment that is towards its end-of-life or needs maintenance, taking into account criteria such as cost, machine performance, and energy consumption. The cost model developed integrates a combination of parametric costing and activity-based costing methods to per form cost estimation. It has been implemented in an Excel-based Macro platform. A case study with application scenarios has been conducted to demonstrate the application of the cost model to optimize life extension strategies for industrial equipment. Finally, conclusions on the developed cost model have been reported.