What Is Capital Equipment?

Capital equipment refers to equipment used by enterprises to increase productivity or modernize production.

Capital equipment

Right!
Capital equipment refers to equipment used by enterprises to increase productivity or modernize production.
Chinese name
Capital equipment
Foreign name
Capital equipment
Factor
The main purpose of the purchased equipment
Features
Businesses use to increase productivity
factor
use. What is the main purpose of the purchased equipment? [1]
flexibility. Can the equipment be universal? In addition to the main purpose of the purchased equipment, how much is the cost of parts and accessories, is it easy to obtain? The following factors need to be considered: Can it have other uses?
standardization. Is the equipment purchased compatible with the equipment already installed, thereby reducing the cost of holding too many spare parts?
compatibility. Is it compatible with existing equipment?
Service life. Usually refers to the period of time before equipment has to be disposed of due to depreciation or scrap. However, if the asset has been disposed of before it becomes obsolete or unusable, it is not necessary to correlate to the total life of the equipment.
reliability. Failures mean increased costs due to delayed deliveries, loss of reputation, and potentially high investment in spare parts.
Operating costs. Fuel, power and maintenance costs. Is it due to the cost of having professional or additional labor? Is it possible to negotiate with the union?
Installation costs. Does the price include installation fees, commissions, and training for operators?
Maintenance costs. Can the equipment be repaired by the employees themselves, or is it necessary to enter into a special agreement with the seller? Is it possible to provide an estimate of the maintenance cost before purchasing? Are the conclusions made reliable?
other aspects. These include equipment appearance, space requirements, noise levels during operation, safety, and how ergonomics affect operator performance.

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