Insufficient control over capex? Unexpected major expenses? The sentence: “that will definitely last another 10 years?” These are all good reasons to consider preparing a Long-Term Asset Replacement Plan (LTARP). I would like to use my contribution to this blog to explain what the LTARP is and what it is used for. THE LTARP IN A NUTSHELL A Long-Term Asset Replacement Plan (LTARP) gives you an insight into the condition and degradation of your installations and, as such, the overall life and expected replacement period of assets. It also forms the basis for investment plans. If you link a replacement value to the life of an installation, it immediately becomes possible to visualize the investments necessary in the years ahead. The LTARP results in a long-term investment plan, substantiated by a knowledge of systems, the market and employees. APPROACH After identifying critical assets, the following will be recorded for each asset individually: Current preventive maintenance. If preventive maintenance tasks replaces an item immediately and in full, the asset in question falls outside the scope of the LTARP; The level of replacement costs. If the replacement value is lower than the investment threshold, the asset in question will not be relevant...