Browsing by Author "Theron, Elizna"
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- ItemAn integrated framework for the management of strategic Physical Asset repair/replace decisions(Stellenbosch : Stellenbosch University, 2016-03) Theron, Elizna; Jooste, J. L.; Vlok, P. J.; Stellenbosch University. Faculty of Engineering. Dept. of Industrial Engineering.ENGLISH ABSTRACT: The effective management of physical asset repair/replace decisions is essential to organizations that compete in physical asset intensive industries. Not only do these decisions require substantial capital investment, they also have a significant effect on an organization’s profitability and financial performance. Physical asset repair/replace decisions fall within the domain of Physical Asset Management (PAM). PAM is a broad and complex field that comprises of multiple disciplines and principles for the effective management of physical assets, from concept to disposal. Managers of physical assets in physical asset intensive industries are regularly faced with the decision to either continue maintaining, or to replace a physical asset in operation. These decisions include, amongst many other factors, determining the optimal period when replacing a physical asset is more advantageous than maintaining it. Despite the importance and significant organizational impacts of this decision, judgement is often made in practice based on the intuition of the decision-maker and/or purely based on financial aspects. As PAM is a multi-disciplinary field, the management of physical asset repair/replace decisions should incorporate the impacts of multiple, financial and non-financial criteria. This study therefore proposes a strategic, multiple criteria-based, decisionmaking framework for the management of physical asset repair/replace decisions. The framework is based on an extensive literature review that focusses on identifying the core concepts of PAM and strategic decision-making. Specific emphasis is placed on physical asset repair/replace decisions within the PAM domain as well as on the multi-criteria nature of these decisions. The proposed framework therefore integrates principles from the fields of PAM, strategic decision-making and multi-criteria decision-making into a structured, stepwise decision-making methodology. The main objective of the proposed framework is to aid managers with the management of physical asset repair/replace decisions, by providing them with a practical, structured decision-making process. Moreover, the framework aims to provide a process that is easy to apply in practice in any physical asset intensive industry. A case study is conducted in the mining industry of Namibia to validate the framework and prove that all of the before mentioned objectives are met.