Cost Modelling to Support Optimum Selection of Life Extension Strategy for Industrial Equipment in Smart Manufacturing

Abstract Industrial equipment/machinery is an important element of manufacturing. They are used for producing objects that people need everyday use. Therefore, there a challenge to adopt effective maintenance strategies keep them well-functioning and well-maintained in production lines. This will save energy materials contribute genuinely the circular economy creating value. Remanufacturing or refurbishment one extend life such industrial equipment. The paper presents initial framework cost estimation model based on combination activity-based costing (ABC) human expertise assist decision-making best extension strategy (e.g. remanufacturing, refurbishment, repair) Firstly, ABC developed calculate be as benchmark strategy. Next, expert opinions employed modify data strategy, which then estimate costs other strategies. has been implemented VBA-based Excel® platform. A case study with application examples demonstrate results its applicability estimating analysing applying Finally, conclusions have reported.