Urgency and Essentiality
Many phases of business operations managed in an adhoc manner rather that as part of a well-con-received plan. When machine part fails, a belt brakes, or a generator wares out. routine replacements are made to avoid disruption, Thus, there is a breakdown of an old machine, it might be hastily, though uneconomically, replaced to minimise the loss of an old machine, it might be hastily, though uneconomically, replaced to minimise the loss of time an production. Here the emphasis is on urgency and essentially rather than on economic feasibility or cost because loss per day may be far greater than an economy achieved after proper evaluation and scrutiny of the investment that delays the replacement.
However, all repairs, maintenance and replacement should be within the framework of an overall equipment policy that considers future-cut comparisons and timing. Moreover, urgency should not be allowed to become a convincing influence, because economic considerations cannot be relegated into the background. Although the pressures of the moment lead to quick remedial action and after it cannot be avoided, yet urgency should not be made an scapegoat leading to the disaster approach to capital budgeting.