Life Span Analysis for Reserve Components

In a Depreciation Report, each reserve component is analyzed in terms of life cycle condition and expected remaining useful life. The life span analysis considers the following factors:

• Type of Component
• Utilization
• Material
• Workmanship
• Quality
• Exposure to Weather Conditions
• Functional Obsolescence
• Environmental Factors
• Regular Maintenance
• Preventive Maintenance
• Observed Condition

The critical aspect in a Life Span Analysis is the observed condition of each reserve component, which is based on:

• Actual age of the component
• Maintenance of the component
• Observed deficiencies of the component
• Repair and replacement experience
• Probability of hidden conditions