Wear. Types of wear and classification

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Every person has long known that everything around tends to wear out. This applies to buildings as well as to any equipment. Moreover, it is necessary to replace equipment and real estate not only when they fail, but also when more modern equipment appears.

This will save a significant amount of money on the repair of old machines and equipment and get faster and safer production. Experts in the field of accounting and economics are familiar with these processes.

Determining wear

Understanding wear and tear is easy. This is the loss of the original properties of the object. This happens for many different reasons and their combination: natural, temporary, economic and technological. Human progress and impact are just as important.

In accounting, this concept is closely intertwined with depreciation. Someone considers the concepts identical, but the difference is significant. Depreciation reflects the physical side of the production process, and depreciation reflects the economic side, that is, the redistribution of the cost of deformations to the cost of products and the allocation of funds for the purchase of new equipment.

The latter can become obsolete in different ways, which directly affects wear. Types of wear can be classified according to different criteria. There is physical wear and functional wear. Each of them is also divided into groups.

Physical wear and tear

We are talking about a direct loss of original properties during the operation of items. Depreciation can be represented as full and partial. In the latter case, the equipment must be restored by repair. In other situations, only write-off or use as spare parts is allowed.

There is also a more detailed classification of physical wear and tear:

• first kind - equipment wears out as a result of proper use;
• of the second kind - the culprit of damage to equipment and buildings is nature, violation of the rules of use, etc.;
• continuous - gradual loss of original properties due to use of equipment;
• emergency - sudden (hidden wear and tear is a common cause).

The types of wear described above can be determined not only for the piece of equipment as a whole. But also for its component parts.

In terms of meaning, the types of physical wear and tear are not particularly different from moral wear.

Functional wear and tear

If everything is quite transparent with the physical, then in the case of the functional, it should be clarified that here we are talking about a decrease in the attractiveness of cars as a result of the production of equipment using new technologies. Functional wear is divided intofollowing types:

• Partial - the equipment becomes unprofitable to use for a full production cycle, but it may still be suitable for some specific operations.
• Full - wear and tear means that the equipment cannot be used for production purposes. It is only suitable for decommissioning or use as spare parts.

Functional wear has another classification - for reasons of occurrence. It distinguishes the following types:

• Obsolescence - the appearance on the market of more advanced equipment, similar to those used in production. Types of obsolescence are due to excess capital or operating costs.
• Technological wear - the emergence of more advanced production technology. It can be reduced due to the quantity and composition of the equipment.

Economic depreciation

Not only nature and time affect the types of wear. The economy, its development and indicators also affect the depreciation of technology. Wear is directly related to factors such as:

• Decrease in demand for the company's products.
• Inflation. There is a need to buy raw materials at higher prices, raise wages for workers, and other similar costs arise, but prices for products do not increase in the amount corresponding to the costs.
• Growing competition.
• Growth in interest rates on loans for organizations issued for specific purposes (for example,purchase of new equipment).
• Changes in commodity markets.
• Introducing restrictions on the use of certain models of equipment for environmental reasons.

Both real estate and different groups of equipment can become obsolete and lose their properties. Each company has its own complete list of where wear occurs. Wear types also have their own classification.

Tools

Usefulness and compliance with the instructions affect the condition of the tools. With their active or incorrect use, they are more susceptible to deformation and lose their original properties. The types of tool wear are varied:

• surface deformation;
• notching;
• plastic deformation;
• chipping;
• cracks;
• growths of a different nature.

Each of them has its own causes and remedies for damage. Measures taken to combat the resulting tool wear help extend tool life and produce better work.

Details

As a result of constant use, the size, shape, and integrity of equipment parts may change. This happens for many reasons, which allow us to distinguish the following types of wear parts:

• mechanical;
• molecular mechanical;
• corrosion-mechanical.

Excellent prevention is timelylubrication of parts, regardless of whether the equipment (machines, machinery, equipment, etc.) is in operation or in stock.

Buildings

Any structure loses its strength over time. You can extend its life both through proper operation and timely repair or reconstruction. Types of depreciation of buildings are as follows:

• Physical - the impact of time and external factors on the object.
• Functional - when a building no longer meets the requirements for facilities and activities of this type.
• External - influence exerted by external economic factors.

In this case, objects are divided into elements of two categories: long-term and subject to rapid wear. The first group includes walls, and the second - the roof, pipes, etc.

Depreciation of real estate is the same regardless of the nature of its use and location. The only difference is that physical wear can be slower or faster in different climates.

Also, there are not only types of equipment wear, but also methods for determining the deformation of equipment. Consider them.

Methods: how to determine wear

Types of depreciation are often defined as physical and moral, without a more detailed division into subgroups. The following methods will help determine their degree:

• observation - a direct method for determining wear (object inspection and various tests);
• by life - the ratio of the standard period of operation to timeuse makes it clear by what percentage the technique has lost its original properties;
• enlarged assessment of the technical condition - determination of wear on a special scale;
• direct monetary measurement - the ratio of the cost of repairs to the price of a new piece of equipment;
• functioning profitability - the ratio of the decrease in net income to the maximum possible.

Each of the methods more or less accurately reflects the state of objects, but in practice the direct method is used much less frequently than the others.

Methods of Accounting

As it becomes clear, a wide variety of wear and tear can be defined and classified. Depreciation on them is also calculated by several methods. This is:

• linear;
• decreasing balance method;
• by the sum of years of useful life;
• proportional to the volume of production.

All these methods are used in the accounting department of enterprises, depending on what the company does and what its production volume is.

In the life and activities of every enterprise, wear and tear must be given great attention. It is through the correct use of equipment and real estate, timely repair and replacement that the company will receive high-quality goods at the minimum necessary cost.