The Optimal Prioritization of the Replacement of Critical Equipment in Industrial Complexes by Combining LCC and NSGA-II

Document Type : Original Article


1 Department of Civil Engineering, East Tehran Branch, Islamic Azad University, Tehran, Iran

2 Department of Industrial Engineering, Iran University of Science and Technology, Tehran, Iran.

3 Higher Technical School of Engineering, department of Industrial Management, University of Seville, Sevilla, Spain.


The management of capital assets in industrial complexes is very complicated given the large number of existing equipment in them. This becomes even more complicated when several equipment units need to be replaced simultaneously. Since the replacement program is costly and time-consuming, the critical equipment should be identified and prioritized. Thus, the main objective of this research is to develop a decision-making support system (DMSS) for prioritizing the critical equipment. A practical and scientific framework is developed for the optimal prioritization of the replacement of the critical equipment in industrial complexes. This optimization framework is multi-criteria and consists of two mathematical steps. In the first step, life cycle costing (LCC) is used to measure the economic life of the equipment and to identify the critical equipment. In the next step, the optimal time for replacing the equipment and their priorities are determined. An optimization application is designed for this purpose using an NSGA-II method and the Java software. A case study was conducted on Iran’s gas transmission operations in Khuzestan province. Out of 595 equipment available in this study, 110 units were identified as critical equipment and were prioritized.