Manufacturing Project Portfolio & Capex worked example

Equipment Replacement Priority with failure consequence severity of 15 score: a worked example

Push failure consequence severity up to 15 score and the picture changes. This example computes every intermediate figure at that operating point. Use it when equipment replacement priority in manufacturing project portfolio and capex needs a defensible ranking against other manufacturing project portfolio and capex risks for the next review.

The inputs for this scenario

  • Failure consequence severity (1-10): 15 score (raised for this scenario; the documented default is 6)
  • Breakdown frequency / occurrence (1-10): 4 score (unchanged)
  • Early-warning detectability (1-10): 3 score (unchanged)

Working through the calculation

  • Applying the documented formula (Equipment replacement priority risk score = equipment replacement priority severity score × equipment replacement priority occurrence score × equipment replacement priority detection score) to the inputs above produces each figure below.
  • At this operating point the engine returns 8.15 score for equipment replacement priority risk score, the number this scenario is built around.
  • At this operating point the engine returns 15 score for equipment replacement priority severity score.
  • At this operating point the engine returns 4 score for equipment replacement priority occurrence score.
  • At this operating point the engine returns 3 score for equipment replacement priority detection score.

How this compares with the baseline

  • Against the tool's baseline example, where failure consequence severity sits at 6 score and the headline result is 4.55 score, this scenario comes in 79.12% above the baseline at 8.15 score.
  • It multiplies a failure's severity, its occurrence likelihood, and how hard the failure is to detect early into a single replacement-priority risk score. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Equipment replacement priority risk score: 8.15 score (headline result)
  • Equipment replacement priority severity score: 15 score
  • Equipment replacement priority occurrence score: 4 score
  • Equipment replacement priority detection score: 3 score

Run it with your numbers

  • Every input above is editable in the live Equipment Replacement Priority calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.