Level of Repair Analysis (LORA) is an analytical methodology used to determine when an item will be replaced, repaired, or discarded based on cost considerations and operational readiness requirements. For a complex engineering system containing thousands of assemblies, sub-assemblies, components, organized into several levels of indenture and with a number of possible repair decisions, LORA seeks to determine an optimal provision of repair and maintenance facilities to minimize overall life-cycle costs. Logistics personnel examine not only the cost of the part to be replaced or repaired but all of the elements required to make sure the job is done correctly. This includes the skill level of personnel, tools required to perform the task, test equipment required to test the repaired product, and the facilities required to house the entire operation. [1]

Oftentimes, the LORA process discovers that replacing a $3.00 part actually costs hundreds of times that amount, when all cost are considered. The LORA determines if it is more cost effective to discard an item than attempt to repair it. This analysis drives the maintenance support for each repairable unit analyzed. It also establishes who and where each unit will be repaired.

LORA is performed in two (2) steps: [1]

  1. Noneconomic: decision criteria are a list of rules or guidelines that are used to determine if there is an overriding reason why maintenance should be performed. Some organizations have policies that any item costing less than a predetermined price level will be discarded and replaced rather than be repaired.
  2. Economic: addressed using cost models that calculate the possible costs of all support options and then identify the least cost solution. Then the total cost of each option can be compared to determine the lowest option in terms of long-term support over the life of the system.

The LORA process produces the final support solution for the system. It determines where each required maintenance action will be performed, the physical resources that must be available to support performance of maintenance, and what the support infrastructure must be capable of sustaining throughout the operational life of the system. The results of LORA are documented and used as the basis for development of the physical resources for support of the system.

The LORA process starts by identification of the options where maintenance can be performed. It is common for systems to use 2 or 3 levels of maintenance. LORA produces a decision for each item within the system, indicating where each maintenance action for the item will be performed.

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Updated: 7/19/2017

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