Federation University: MREGC5001 Assignment 1 - Terotechnology Report

This report, focusing on terotechnology, examines the challenges faced by maintenance engineers in life cycle decisions, particularly within an oil and gas context. It addresses the critical aspects of asset management, design for maintainability, and reliability, highlighting the decision-making processes involved in asset acquisition, maintenance, and cost considerations. The report explores the expectations of stakeholders, the complexities of life cycle costing, and the importance of the time value of money. It delves into the different types of availability and the tests used to determine maintainability, providing a comprehensive overview of the factors that impact the efficiency and effectiveness of maintenance strategies. The report is structured in a business format, emphasizing the need for engineers to communicate maintenance issues in a way that the management can understand. It also considers the impact of decisions on CAPEX and OPEX, and the importance of monitoring and maintenance to ensure the smooth operation of machinery and equipment. The report concludes with a discussion of the unavoidable circumstances, such as machine failures, that can complicate decision-making processes.

Running head: TEROTECHNOLOGY
Problematic issues faced by maintenance engineers in life circle decisions report
Student’s name
Institutional affiliation
Date

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Contents
Problematic issues faced by maintenance engineers in life circle decisions report.........................1
Executive summary.........................................................................................................................3
Introduction......................................................................................................................................4
Expectations of the asset life cycle care by stakeholders................................................................4
Oil and gas refinery machine installation decision making.............................................................5
Challenges in lifecycle management...............................................................................................7
Life cycle costing.............................................................................................................................7
The whole life costing structure for the company asset..................................................................7
The time value of money.................................................................................................................8
Types of availability........................................................................................................................9

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The maintainability tests................................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................11
Executive summary
Decision making in an organization takes a systematic criterion to be prioritized. In every
company the asset maintenance engineer has to do thorough inspection and monitoring of the
operations to ensure that assets are efficiently improved. It is because every organization aims at
maximizing production with minimal cost of production. The bellow report is terotechnology
alutlay for the oil and gas company in Austria. It is aimed at analyzing factors that pose a

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challenge to the maintenance engineer when making a decision on the asset of a company. This
report is a complement of the information and expression of the challenges faced by the
maintenance engineer in a life cycle decision as applied in asset acquisition maintenance and
costs
Introduction
Terotechnology in the oil and gas company in Australia is one of the critical
advancements in asset management and design for maintainability and reliability. It is as well
used to analyze the challenges faced by maintenance engineers in life cycle decisions. For a
choice of a particular asset to be installed like oil and gas refinery factory to be fixed, need
critical decision making, which is highly triggered and pulled down by the current condition of
the company and its operating personnel (Szczotok, Pietraszek, & Radek, 2018). The oil and gas
company located in Northern Australia. The significant challenges faced in the lifecycle
management of assets are as follows. The asset criticality, prioritization, failure degradation, and
options. All these challenges have some financial impact on the company accounts. The CAPEX
and OPEX and maintenance are the key role in the life cycle
Expectations of the asset life cycle care by stakeholders
It is equally essential for the other workers or team working with the maintenance engineer to be
responsible for their duties, which may cost the company a significant loss. The company
employees should ensure close monitoring of the operation of the machines to ensure they are
well lubricated and repaired frequently. The stakeholders will always expect the best and
efficient service of the assets. However, the stakeholders should be informed that sometimes

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machines may pose an unexpected challenge to the maintenance managers, such as failures and
degradation (Mitchell, & Clark, 2019).
The following diagram shows the current structure of the maintainability of the oil and gas
refinery plant.
Oil and gas refinery machine installation decision making
. The organization of the factors of production in the northern oil and gas company is
characterized by the management team led by the maintenance engineer and the co-workers who
aid in ensuring the smooth operation of the company plants and equipment. It also requires a
fully informed life cycle decision, which is determined by the factors that trigger actions and
their significant aspects, as stipulated below.

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Challenges in lifecycle
management
Life cycle costing
The main challenge that a
company management team will
always struggle with is the life
cycle costing (Ghazali &
Anuar,2017). The company
asset management and maintenance engineer will face it a problem to make a decision whereby
he or she has to ensure there is the consideration of the different aspects which are critical in a
company. The structure of the life cycle asset costing is segregated in parts that are equally
critical to the continuity of the business. The manager has to consider the following sections of a
company. They are the determinants of the decision he will make upon the installation of any
asset (Goh & Sun 2016).
The whole life costing structure for the company asset

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Attached is a file on the life cycle costing
Payback Model
Purchase price $23,000.00
Installation Cost $1,100.00
Sale of exisitng machine -$5,000.00
Net Cost $19,100.00
The time value of money
The time value of money is the concept that money available at the present time is worth
more than the identical sum in the future due to its potential earning capacity.
FV=PV x [1+(i/n)](n x t)
Where; FV= Future value of money, PV= the present value, i= the interest rate and other return
earned, t= the number of years to take into consideration, n= the number of compounding periods

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of interest per year an example of a well-calculated data is attached in the excel worksheet
attached below. It shows the calculation of both future value and the present value of money.
Payback Model
Purchase price $23,000.00
Installation Cost $1,100.00

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8.00
$1,100,000.00
$0.50
$297,500.00
$137,500.00
$160,000.00
$80,000.00
$80,000.00

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ERR 19.8%
IRR
MARR 10%
OptionA OptionB optionC optionD Optione Increment
Life in years 6 9 7 10 8
Capital cost $7,000.00 $8,000.00 $8,500.00 $9,000.00 $9,500.00
Operating cost $4,000.00 $3,200.00 $5,000.00 $3,800.00 $2,100.00
Salvage Value $1,000.00 $0.00 $0.00 $0.00 $0.00
Year
Types of availability
Availability is categorized in different varieties, which is depended mostly on the time of
operation. Or the time of calculation. They can be grouped as follows;
Instantaneous classification is an assumption based on the probability that, at a particular
point, a machine will be operational (Vandoorne, & Grabe, 2018). It helps in decision making
that the maintenance engineer usually considers this classification when deciding on machine
maintenance. Another classification is the average uptime availability. It is used to determine the
proportion of time during a mission in which a machine will be operating.
down date down time
day start 4:20am 14/02/2020 05:00
day end 14:20pm 14/02/2020 06:00
17/02/2020 08:00

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The maintainability tests
After collecting the results, the maintainability test is determined by calculating the standard
deviation of the results (Apostolov, 2017). As shown in the embedded worksheet bellow:
50 57 60 60 74
50 43 54 65 47
64 82 36 63 68
The system has not passed the test due to the high-risk percentage. The system can be improved
by increasing its efficiency. And enhancing possible replacement.
Conclusion
The terotechnology has helped the maintenance engineers to work per the standards of
the maintenance of the production systems. The application of life cycle costing concepts has
helped the managers to make decisions. However, there are some unavoidable circumstances
which make the decisions very hard to come up with and approve. Some of them include the
failures of the machine. It comes at unexpected time and prediction of the period and also the
alternative options for replacement and disposal of the system or assets.

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References
Apostolov, A. (2017). Efficient maintenance testing in digital substations based on IEC 61850
edition 2. Protection and Control of Modern Power Systems, 2(1), 37.
Ghazali, M. R. M., & Anuar, H. S. (2017). Value management: Implementation of an asset life
cycle in one of the oil and gas service company. International Journal of Advanced
Engineering Research and Science, 4(10).
Goh, B. H., & Sun, Y. (2016). The development of life-cycle costing for buildings. Building
Research & Information, 44(3), 319-333.
Klempner, G., & Kerszenbaum, I. (2018). Generator Maintenance Testing. IEEE 3rd
Information Technology, Networking, Electronic and Automation Control Conference
(ITNEC) (pp. 1809-1812). IEEE.
Liu, H. J., Love, P. E., Smith, J., Irani, Z., Hajli, N., & Sing, M. C. (2018). From design to
operations: a process management life-cycle performance measurement system for
Public-Private Partnerships. Production Planning & Control, 29(1), 68-83.

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Mitchell, S. L., & Clark, M. (2019). Reconceptualizing product life-cycle theory as stakeholder
engagement with non-profit organizations. Journal of Marketing Management, 35(1-2),
13-39.
Röckmann, C., Lagerveld, S., & Stavenuiter, J. (2017). Operation and maintenance costs of
offshore wind farms and potential multi-use platforms in the Dutch North Sea.
In Aquaculture Perspective of Multi-Use Sites in the Open Ocean (pp. 97-113). Springer,
Cham.
Shao, J., Qiao, Q., Xu, Y., Zhai, S., & Liu, H. (2019, March). Operation and Maintenance Cost
Allocation Model of Grid Project Based on Performance Value. In 2019 IEEE 3rd
Information Technology, Networking, Electronic and Automation Control Conference
(ITNEC) (pp. 1809-1812). IEEE.
Szczotok, A., Pietraszek, J., & Radek, N. (Eds.). (2018, August). Terotechnology. Materials
Research Forum LLC. Reliability Engineering & System Safety, 184, 181-192.
Vandoorne, R., & Grabe, P. J. (2018). Stochastic modeling for the maintenance of life cycle cost
of rails using Monte Carlo simulation.
Yoon, J. T., Youn, B. D., Yoo, M., Kim, Y., & Kim, S. (2019). Life-cycle maintenance cost
analysis framework considering time-dependent false and missed alarms for fault
diagnosis. Reliability Engineering & System Safety, 184, 181-192.

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Zhang, Y., Kim, C. W., Tee, K. F., & Lam, J. S. L. (2017). Optimal sustainable life cycle
maintenance strategies for port infrastructures. Journal of Cleaner Production, 142,
1693-1709.