Method for assessing the obsolescence of manufacturing equipment based on the triple bottom line

Abstract

Paper aims: This paper proposes a method for the assessment of equipment obsolescence, which includes the economic, environmental and social dimensions that compose the triple bottom line. Originality: This paper describes a novel method that allows a complete evaluation of the state of use of a machine, besides the traditional economic-functional analysis, as well as its application in a large electric machines manufacturing company. Research method: Analytic Hierarchy Process (AHP) multicriteria analysis is used, allowing a comparative and flexible assessment of the equipment. Main findings: Even if there is no economic justification for replacing the equipment considering the financial return on investment, the machine can be considered obsolete from a sustainable point of view, due to its inadequate environmental and social performance. Implications for theory and practice: Applying sustainability concepts in the manufacturing environment, more precisely in the machines on the shop floor, is very important to ensure cleaner production.